On Wed, 09 Feb 2011 07:51:11 -0600, jim
"sjedgingN0Sp"@m@mwt,net wrote:
"F. George McDuffee" wrote:
=============
Its worse than you think. Below is an email I sent to my
Representative and Senators in Congress.
----- start of email -----
Yet another reason to vote NO on increasing the National
Debt Limit. Indeed, legislation to increase the debt limit
should not even be considered or allowed on the floor of
either house, where it just might pass.
Careful what you wish for..............
Americans have accumulated a massive amount of private debt
Private debt peaked at around 300% of GDP in 2008
That is much higher than the private debt peak in 1929
that led to 1930's depression
==========
Indeed, and it makes the debt situation that much worse.
Below is yet another email I sent to my Congressmen.
----- start of email -----
Reason #1,417 to "spike" any increase in the national debt
limit.
http://news.yahoo.com/s/csm/362107
snip
Los Angeles - Vice President Joe Biden Tuesday proposed that
the US government infuse $53 billion into a national
high-speed rail network.
snip
It is crystal clear that the only way to stop the
profligate, improvident, and unnecessary spending by the
Federal Government is to prevent it from borrowing more
money to do so. I AM THEREFORE URGING YOU TO PREVENT EVEN
THE CONSIDERATION OF ANY LEGISLATION TO INCREASE THE DEBT
LIMIT. While enactment of Senator Toomey's [R-Penn] or
similar proposals to make interest payments and bond
redemptions the first of the government's payment priorities
is highly desirable to put real meaning in the phrase "full
faith and credit," it is by no means a necessary condition.
http://toomey.senate.gov/record.cfm?id=330945
The government of the United States is rapidly approaching a
critical point in the debt to GDP ratio, beyond which
default and economic collapse becomes increasingly likely as
detailed in the Reinhart and Rogoff Study:
http://www.economics.harvard.edu/fil..._Different.pdf
And their follow up on the credit freeze or contraction of
2008,
http://www.economics.harvard.edu/fil..._Aftermath.pdf
A significant aggravating and exacerbating factor is the GDP
of the United States may have been inflated by the shift
from a predominately manufacturing economy to a primarily
service and consumption economy. This occurs because many
economic activities previously performed in the home such as
cooking, cleaning, child care, and do-it-yourself repairs,
and not included in the GDP calculations are now performed
externally in the market/cash economy and are counted. If
the GDP has indeed been significantly inflated, then the
ratio of debt to "real" GDP comparable to what was
calculated in the 50s and 60s may be much higher and much
closer to (or even past) the historical "tipping point."
The Congressional Reference Service should be able to supply
more exact data on a "deflated" or actual GDP.
http://en.wikipedia.org/wiki/Gross_domestic_product
snip
"Similarly, if there is a long term shift from non-market
provision of services (for example cooking, cleaning, child
rearing, do-it yourself repairs) to market provision of
services, then this trend toward increased market provision
of services may mask a dramatic decrease in actual domestic
production, resulting in overly optimistic and inflated
reported GDP. ==This is particularly a problem for
economies which have shifted from production economies to
service economies.==" {emphasis added}
snip
----- end of email -----
As before feel free to use all, part or none of this email
if you want to write your own Congressmen.
To identify your Senators goto
http://senate.gov/ To
identify your representative goto
http://house.gov/. Most
members of congress now have web mail which you can access
through the above sites. Be sure and bookmark their web
mail sites.
-- Unka George (George McDuffee)
...............................
The past is a foreign country;
they do things differently there.
L. P. Hartley (1895-1972), British author.
The Go-Between, Prologue (1953).