On 3/13/2011 2:30 PM, John R. Carroll wrote:
Hawke wrote:
On 3/12/2011 10:26 PM, Rich Grise wrote:
Hawke wrote:
On 3/12/2011 1:41 PM, Rich Grise wrote:
John R. Carroll wrote:
Shall not be infringed wrote:
On Mar 12, 10:58 am, jim"sjedgingN0Sp"@m@mwt,net wrote:
Shall not be infringed wrote:

My taxes are down. We need to cut the **** out of gov't
spending.

Why?
Do you have any clue why you want reduced govt. spending?

Yes. We're broke.

American consumer net worth is $70 trillion dollars.
Public debt is $14 trillion dollars.
The unfunded liability of Social Security is ZERO by definition.
The only thing broke is your brain.

I'm wondering what's going to happen when China forecloses?

We tell them that we're broke, we don't have the money to pay them
back and they're out of luck. They took a risk loaning us the
money. We can't pay it back so they lost their investment. Last, we
tell them "life's not fair".

So, are you going to enjoy learning Mandarin when they repossess the
collateral?

Thanks,
Rich

''



The only collateral they have is paper. Which would be as valuable as
the stock in a company that no longer exists. In other words the
Chinese would be left holding the bag. They would not get a return on
investment. They wouldn't even get a return OF investment. So they are
in no position to try to dictate to us. Holding a big debt is a two
way street. The side that owes is not necessarily in the weaker
position.

Owing you banker a thousand dollars can be a problem for you.
Owing him a million can be a problem for him, but for you - not so much.



Donald Trump learned that trick back when real estate prices tanked and
he went from being a billionaire to being in debt. I recall he was
something like 300 million in debt to a number of bankers at one time.
They were so afraid of him defaulting it put him in the driver's seat.
He went out and got them to lend him even more money and refinance his
loans. In the end, when real estate went back up he was a winner. But
when he was hundreds of millions in debt he still didn't hand control
over to the bankers. They didn't want to lose the millions Trump owed
them so they bent over backwards to accommodate him. To bad our
government never seemed to have learned that lesson. We owe the Chinese
a trillion dollars. Now we've got them right where we want them. Right?

Hawke