On Thu, 09 Aug 2012 11:44:40 -0500, jim wrote:



" wrote:

On Thu, 09 Aug 2012 08:24:40 -0500, jim wrote:



"J. Clarke" wrote:

In article ,
says...

"J. Clarke" wrote:

In article , cayoung61
says...

Might help with the economic depression, too?

Not necessarily. The New Deal worked mostly because while just about
everybody in the country was broke, the government was solvent. This
time the government's as broke as the rest of us.

Not true. The ratio of federal govt debt to
private debt was the same in 2008 as it was
at the beginning of the great depression.

http://static.seekingalpha.com/uploa...hael-Clark.png

What does the ratio of federal government debt to private debt have to
do with the government being broke?

Nothing at all. The govt is not broke


One can be broke without owing
money. In fact if one is broke it is generally difficult to obtain a
loan.

The govt has no difficulty getting loans.

That's why the Fed has had to buy T-bills.

The govt has no difficulty getting loans.

It's obvious that you haven't been paying attention. What do you think QEn is
all about? We're buying our own paper because no one else will.

In 1930 the federal Debt was 16 billion dollars on a Federal income of 4
billion and the government showed a surplus of 730 million.

In 2011 the federal debt was 14 trillion dollars on a Federal income of
2 trillion and the government showed a deficit of more than 1 trillion.

The government took in and spent 3.6 trillion last year.
And the govt owes private investors about 9 trillion.

No, it took in 1.3T less than it spent. 9T?

It received 1.3 trillion from bond buyers who understand
that the safest place to put their money is Tsy securities

You're an idiot. Ever hear of Quantitative Easing?

Or by another measure, in 1935 the federal debt was about 40 percent of
GDP, having risen to that level from about 20 percent in 1930. In 2011
the federal debt was nearly 60 percent of GDP, up from about 35 percent
in 2005. The only time the federal debt was higher was during WWII.

And when the federal debt went higher
what followed was increased economic growth.

You're nuts.

When you can't refute the facts start name calling.

Stateing facts. You *are* nuts.

If you don't think that the government owing 70 percent of the entire
country's income and having to borrow half as much as it brings in to
pay the interest on the existing debt means that the government is
broke

The govt is not broke and the federal debt will continue to
go much higher.

Until it can't.

The federal debt will grow as it is until
the private sector is no longer drowning in debt

Good grief! "Borrow our way to prosperity!" What a flaming idiot!