Richard wrote:

On 8/28/2012 12:02 PM, jim wrote:


Richard wrote:

On 8/28/2012 5:38 AM, jim wrote:


Richard wrote:

This was a shock!

Now I understand why the budget hasn't been balanced yet.

Actually, it sounds like you don't have a clue.


You are right.
I didn't have the first clue that this was where we were.

That is pretty sad. It took decades of doing the same thing
to get here.



The US debt situation is far better than it was 4 years ago.
Had things continued the way they were going the total US debt
would be close to $80 trillion by now (close to 500% of GDP).
Instead the total US debt is only $53 trillion. That
will
still take decades to climb out of that hole but at
least the US has stopped digging.


You didn't look, did you.

Well, I guess that's to be expected...


I did look. That link has been posted before.
There is nothing new in that video. Its a tragedy
that you and others didn't know the facts
he presented.

But the conclusion he draws from the facts is baloney.

The current economic problems was created by 60 years of
runaway private sector debt. The govt debt isn't the problem.

The problem is a technically insolvent private sector.
The capital and assets of the private sector simply are
not worth in real value what the private sector owes in
debt. And that simple fact will be revealed to one and all
when Congress tries to reduce the deficit.

The current choices are simple the govt can stop borrowing
the funds the private sector is devoting to repaying debt
and force more than 50% of households and businesses
into bankruptcy or the govt can continue to borrow what the
private sector is currently under-spending and allow the
private sector to continue to delever and repair their
balance sheets.

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