On Wed, 20 Jul 2011 09:18:13 -0400, George wrote:

On 7/20/2011 6:50 AM, bob haller wrote:
On Jul 20, 3:45 am, wrote:
Now both of our economies are going to hell on a handcart is now the
time to buy gold or is it too late?
If you have any, do you sell? If you do, what do you do with the
readies? ($).

Buy houses?

all bubbles burst.

as to gold if the world economy continues its downward implosion, with
congress helping here the bottom may drop out of everything.

people will still need to eat

its sad watching our congress play games while they can crash the
worlds economy.


Why would that be? Aside from the drama everything I read says the
government can spend what it could before it just can't spend more.

No, it can only spend 60% of what it spent before. Currently, they're
spending $1.75 for every $1.00 brought in. After their credit card gets cut
up they can only spend $1.00. There is still enough to pay the interest on
the card and SS, and some, but somethings can't be paid. A lot of those
things shouldn't be anyway, but that's a different discussion.

Simple analogy. You and your family decide to have a budget and you
agree to never borrow more than say $20,000/year (the "debt ceiling").

No, the "debt ceiling" would be like you only have a $20,000 credit card
maximum. *NOT* $20,000 per year. You've just spent $19,995 and have only
have $5 more to borrow, and you have an order in the mail that'll be here in
August.

So now this year one of your family members wants to go on an
extravagant vacation which would require that you borrow an additional
$5,000. If you adhere to your originally agreed borrowing limit you can
still feed and clothe yourselves and go on as usual only no extravagant
vacation.

No.

And if you were sensible and you really wanted to go on the extravagant
vacation you might decide for example that you really don't need that
new car


every congressman should turn in their resignation for playing these
games

Why? Some of us explicitly fired out old Congressmen because we were
tired of out of control spending.

Yes.