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Metalworking (rec.crafts.metalworking) Discuss various aspects of working with metal, such as machining, welding, metal joining, screwing, casting, hardening/tempering, blacksmithing/forging, spinning and hammer work, sheet metal work. |
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History Lesson on Your Social Security Card
"jim" wrote in message ... Scout wrote: Seems more like You are the one that is palming stuff off on the future. Your generation didn't pay the govt debts of the last generation and the next generation won't pay the govt debts of today Not by my choice, but those that simply keep pushing the problem down the line.....watching it grow larger and larger and larger. The problem is not the federal debt. The private sector amassed $24 trillion in debt from 1998-2008 How much of that is mortgages? -- Ed Huntress (in case you are weak in math that is $80,000 per citizen) and then in 2008 the assets against which they had borrowed all that money suddenly dropped in value by $15 trillion (again if you can't divide that is a loss of $50,000 per person) whoops And as much as you would like to blame the govt for the mess we are now in - it aint the govt that caused that mess to happen And it aint the govt that is causing the aftermath of the mess Right now the US private sector is so shell-shocked from what happened that few are borrowing and huge numbers are trying to get out of debt by repaying loans with whatever they can spare Private sector borrowing has become negative and saving has increased by a factor of 3. this is a graph shoeing what the private sector borrowed per year for the last 60 years: http://tinyurl.com/4x9zcgu Unfortunately when the nation is mostly paying back debts and saving there is considerably less money available to buy the goods and services that keep Americans employed So, in case you haven't noticed, the result has been lots of people lost their jobs And again the govt didn't cause that to happen and about all the govt can do is to keep up its spending level to make up for some of the decline in spending from the private sector so that even more won't lose their jobs This federal deficit spending is going to keep on happening as long as the private sector is deleveraging To balance the budget now would be gruesome If I had my way the federal government wouldn't be able to borrow money except in an emergency and then they would have to sell bonds to the public. Tell it to the founding fathers. They gave the govt authority to borrow as much as it deems appropriate But as I said you are looking at the wrong problem And when you think the problem is something that it is not you will always arrive at the wrong answer That way if we don't consider it an emergency then we don't have to loan them the money. Checks and Balances. Well I don't know what qualifies as an emergency... But if the government does not continue to borrow and spend the nation will go into a recession and if the US balances the budget for long there will be a depression Right now at our current rate of growth China will be richer than the US in 30 years If you succeed in balancing the budget in the US today, China will be ahead of the US in less than 5 years That is what we are talking about leaving our grandchildren |
#2
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History Lesson on Your Social Security Card
Ed Huntress wrote: "jim" wrote in message ... Scout wrote: Seems more like You are the one that is palming stuff off on the future. Your generation didn't pay the govt debts of the last generation and the next generation won't pay the govt debts of today Not by my choice, but those that simply keep pushing the problem down the line.....watching it grow larger and larger and larger. The problem is not the federal debt. The private sector amassed $24 trillion in debt from 1998-2008 How much of that is mortgages? Depends on what you mean. Household mortgages were little less than 1/3 of the total debt Compare that to a drop in household owner equity in real estate of about $7 trillion near the end of 2008 so the net amount borrowed from 1998-2008 is only a little more than the value lost in the crash There has been no recovery in housing There was also couple trillion in small business real estate loans Not sure how much debt was added to the base mortgages by various schemes to bundle and resell mortgages by lenders About half the total private debt was acquired by the financial sector which tripled its debt from 1998-2008 to a sum almost 100% of US GDP before the roof caved in. Can't tell you precisely how all the financial sector debt breaks down or how much of that debt was related to betting on mortgages. -jim -- Ed Huntress (in case you are weak in math that is $80,000 per citizen) and then in 2008 the assets against which they had borrowed all that money suddenly dropped in value by $15 trillion (again if you can't divide that is a loss of $50,000 per person) whoops And as much as you would like to blame the govt for the mess we are now in - it aint the govt that caused that mess to happen And it aint the govt that is causing the aftermath of the mess Right now the US private sector is so shell-shocked from what happened that few are borrowing and huge numbers are trying to get out of debt by repaying loans with whatever they can spare Private sector borrowing has become negative and saving has increased by a factor of 3. this is a graph shoeing what the private sector borrowed per year for the last 60 years: http://tinyurl.com/4x9zcgu Unfortunately when the nation is mostly paying back debts and saving there is considerably less money available to buy the goods and services that keep Americans employed So, in case you haven't noticed, the result has been lots of people lost their jobs And again the govt didn't cause that to happen and about all the govt can do is to keep up its spending level to make up for some of the decline in spending from the private sector so that even more won't lose their jobs This federal deficit spending is going to keep on happening as long as the private sector is deleveraging To balance the budget now would be gruesome If I had my way the federal government wouldn't be able to borrow money except in an emergency and then they would have to sell bonds to the public. Tell it to the founding fathers. They gave the govt authority to borrow as much as it deems appropriate But as I said you are looking at the wrong problem And when you think the problem is something that it is not you will always arrive at the wrong answer That way if we don't consider it an emergency then we don't have to loan them the money. Checks and Balances. Well I don't know what qualifies as an emergency... But if the government does not continue to borrow and spend the nation will go into a recession and if the US balances the budget for long there will be a depression Right now at our current rate of growth China will be richer than the US in 30 years If you succeed in balancing the budget in the US today, China will be ahead of the US in less than 5 years That is what we are talking about leaving our grandchildren |
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