DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - America and the west are in deep economic trouble

**jhkjurter** · 09-04-2012, 04:22 AM

This rolling the debt over is popularly known as 'kicking the can" down the road...hoping someone will deal with it in the future, except the problem keeps getting worse and worse. In democracies no politician wants to deal with it because it would make them very unpopular to reduce the debt (it would cause a lot of cut backs on big government spending, it may even increase unemployment as government jobs are lost), so they hope someone else will deal with it. Except as I said the problems keep getting bigger and bigger, and if it breaks by itself the problems will be so big that it will cause much pain and suffering.

Foreign countries like China have been buying the bonds and treasuries sold by the US, they own about 1 trillion dollars. This means China is holding on to something that is losing value, and if they try to dump all their dollar assets on the market it will reduce their value even more (over supply and not enough demand = lower prices), so China has to balance this by holding onto the dollar assets and only selling them off slowly and not buying too much of new debt. China is also buying land, oil and other real commodities with the dollars...because if and when the paper dollar becomes worthless they want to be holding something that has real value (like gold, silver, agricultural land in Africa etc)

Sometime last year or the year before, the US increased its national debt limit from $14Trillion to $16.4Trillion. They are now approaching the $16.4Trillion limit as can be seen here at the treasury dept. website:

http://www.treasurydirect.gov/NP/BPD...application=np

They have few options except to increase their debt limit yet again.

Surprisingly, there are many Americans who are (finally) waking upto the corruption that has led to this situation and also what it means for their futures. They will spend decades locked-into a debt trap, trying to pay it off. Even the professinals in the finance industries can see quantative-easing 'QE' employed by the central banks to buy-up government bonds is a mirage that creates fake demand for US bonds. Without this QE, US bonds would become much like Greek ones:

http://www.cnbc.com/id/47256715/US_T...ollapse_Schiff

Allahu A'lam

09-04-2012, 04:22 AM	#30
jhkjurter Join Date Oct 2005 Posts 512 Senior Member	This rolling the debt over is popularly known as 'kicking the can" down the road...hoping someone will deal with it in the future, except the problem keeps getting worse and worse. In democracies no politician wants to deal with it because it would make them very unpopular to reduce the debt (it would cause a lot of cut backs on big government spending, it may even increase unemployment as government jobs are lost), so they hope someone else will deal with it. Except as I said the problems keep getting bigger and bigger, and if it breaks by itself the problems will be so big that it will cause much pain and suffering. Foreign countries like China have been buying the bonds and treasuries sold by the US, they own about 1 trillion dollars. This means China is holding on to something that is losing value, and if they try to dump all their dollar assets on the market it will reduce their value even more (over supply and not enough demand = lower prices), so China has to balance this by holding onto the dollar assets and only selling them off slowly and not buying too much of new debt. China is also buying land, oil and other real commodities with the dollars...because if and when the paper dollar becomes worthless they want to be holding something that has real value (like gold, silver, agricultural land in Africa etc) Sometime last year or the year before, the US increased its national debt limit from $14Trillion to $16.4Trillion. They are now approaching the $16.4Trillion limit as can be seen here at the treasury dept. website: http://www.treasurydirect.gov/NP/BPD...application=np They have few options except to increase their debt limit yet again. Surprisingly, there are many Americans who are (finally) waking upto the corruption that has led to this situation and also what it means for their futures. They will spend decades locked-into a debt trap, trying to pay it off. Even the professinals in the finance industries can see quantative-easing 'QE' employed by the central banks to buy-up government bonds is a mirage that creates fake demand for US bonds. Without this QE, US bonds would become much like Greek ones: http://www.cnbc.com/id/47256715/US_T...ollapse_Schiff Allahu A'lam
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