THE US Economy Thread (merged)

Graeme · Posted: Mon Mar 06, 2006 10:28 pm Post subject: THE US Economy Thread (merged)

US government near to debt limit

Dreamtwister · Fission Joined: Feb 06, 2006 Posts: 2278

albente · Light Sweet Crude Joined: Aug 20, 2004 Posts: 1361

The Dollar as a currency seems to go in step with energy supply nowadays. Once the Dollar is renamed 'Freedom-Dollar' or 'Patriot-Dollar' you have an indicator that the whole thing turned sour indeed.

CoronaWithLime · Tar Sands Joined: Feb 01, 2006 Posts: 24

So should I start throwing my money in soft cold gold(the kind i can feel and bite) or consumer goods(toilet plungers, lint removers, dryer softener, ect...) I'm so freaking out man!
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stole my bike

IslandCrow

NO PANIC.
The BBC report stated the the Bush Government has already raised the borrowing limit 4 times, so we can be quite sure they will raise it a fifth time. The alternative will be to cut spending or default.
We should be worried about the debt levels, but it is not Panic stations yet.
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We should teach our children the 4-Rs: Reduce, Reuse, Recycle and Rejoice.

LadyRuby

What's this business about approaching the debt limit, we're already over.
The debt ceiling is $8.18 trillion. We're at $8.27 trillion as of March 3rd.
Bureau of the Public Debt - Debt to the Penny

TheTurtle

And what does it really mean to be 8 TRILLION dollars in debt, anyway?
It's not like we are ever going to pay that back.

It is all illusion. Rolling Eyes

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“Humankind has not woven the web of life. We are but one thread within it. Whatever we do to the web, we do to ourselves.” (Ted Perry)

IslandCrow

venky · Intermediate Crude Joined: Mar 13, 2005 Posts: 852

8 trillion, that is still only about two thirds of GDP. Dont deny that it is a cause for concern, especially with the irresponsibility of it all. But still, such a ratio is common in most industrialized countries, in many its even worse. Before the hyper inflation in Germany in the 1920's the debt was something like 5 times the GDP I believe.

Cran

Why don't they just print out $8.27 trillion in new bank notes and pay back the loan! Cool

Sorted!

TommyJefferson

Raxozanne

I really can't see the point in having an official debt limit as they just keep on raising it anytime they approach it.

warnio · Coal Joined: Mar 08, 2006 Posts: 9

I would like to say these two things:
1) the US government has been doing this for at least 150 years, it's a very normal thing. No news actually.
2) The public debt of the USA is, in my eyes, not high. It's only 65% of it's GDP.

I live in Belgium, we have a debt of 94% and we're doing just fine ! Twelve years ago we had a debt of 135%. That was high but it obviously didnt kill us Smile

Other countries like Italy 107% and Japan 170% have a high debt. The public debt of the USA is average at most. You guys can just relax, nothing to worry about...

oilfreeandhappy

Yeah, I guess we shouldn't worry. Maybe Mexico will bail us out. The debt is one thing, but the record federal deficit is the big concern. Until this gets under control, the debt will continue to skyrocket.
http://home.comcast.net/~oil_free_and_happy/

uNkNowN ElEmEnt

I think that's why they made Bernake the Fed head. so they can just print their way out of any major problem... or so they think.