If you think your saving the country by not stimulating the economy because the debt will kill us in the long run, You are only half right. If You think that enhanced debt reduction is a way for those that make money to stealing yours you are right.
CNBC had a blog post explaining debt and deficit along with who owns it.The deficit refers to the difference, in a single year, between government receipts and spending. National debt is the sum of all outstanding debt owed by the federal government.
The conservatives take these definitions and do what they do best, demonize a normal system belief or occurrence. Some of these statements they use are. “China is taking us over by buying our debt!!”, ” Look at Greece were next!!”,” Business can’t borrow money because the government does!!”,”Were going broke!!”. Are you afraid yet. You should be these radical statements actually reinforce themselves.
To realize how hideous these statements are you need to know some real differences between the rhetoric and reality.
1. Federal Reserve and intragovernmental $6.328 trillion
2.China $1.132 trillion
3.Other Investors/Savings Bonds $1.107 trillion
4. Japan 1.038 trillion
5. Pension Funds $842.2 billion
6. Mutual Funds $653.5 billion
7. State and Local Governments $484.4 billion
8. The United Kingdom $429.4 billion
9. Depository Institutions $284.5 billion
10. Insurance Companies $250.1 billion
If you add up our outside the U.S. lenders from the top ten you will see that China holds A little more than a third and that it is about 5% of the total. hardly enough to foreclose.
The next realization is that we are not in the Euro group. If you look at these nations that have tied their economy’s to each other they haven’t tied their governments to together. If New Jersey were to go bankrupt the federal government would have to bail them out. If Greece goes bankrupt none is required to help them. Of course it is in their best interest to do so because their economy will go into an upheaval if the monetary system fails. Greece cannot print euros to pay debt, we can print dollars.(this has a negative of causing inflation and making goods more expensive because it devalues the dollar. On the bright side a devalued dollar makes our goods cheaper on the world market and therefor would increase demand and create jobs)
When you buy a house you put yourself deep in debt and for most people the equity in their homes is their greatest asset. If you want to get another loan lets say for college tuition the lender usually wants collateral. If you have enough net wealth (assets) your interest rate is usually lower and you get the loan. If you need an extension or you are having trouble paying or need to borrow more then once again it depends on your assets. In other words what are you worth. Once what you owe is less than your worth your broke. Rutledge Capital estimates the capital worth at 188 trillion. Shiller estimates the investment value at 1.4 Quadrillion(based on trills @1400 per). Our GDP is about 14 trillion. So let take a look The average mortgage is three to fours times your annual income. Then you have car heat food credit card and other debt. While the country needs to be careful it is by no means broke.
So why the lies and or exaggerations. Simply put when the economy is humming along there is less to complain about. There is less control and more mass liberty. If these conservatives can’t scare you then they have nothing. Name me a Republican President that didn’t have another country to hate and fear. Total destruction of our way of life. Please including the intrusive patriot act they have done nothing but take your freedoms one by one when they gain power. If you think I am Exaggerating too just look at whats happening in Michigan and Maine. See how they go against the populous in Wisconsin and Indiana,not to mention Ohio.
Let me in on the off the wall ideas where these guys can get off and also solve a few problems. Let’s invade Cuba annex it then sell it to Venezuela for say 18 Trillion in oil. Sell the oil pay off the debt then take Cuba back and let it become a free country. With the extra money we received we can support the wars. If a bomb or two drop on Guantanamo as Gov Perry would say Oops!!