Debt & Deficits

The budgetary and fiscal crisis right now has made many political issues far clearer in people's minds. The debt dilemma is a challenge and an opportunity to set America on a freer and potentially more prosperous track, if the reality of the situation is looked at foursquare in the eye. Otherwise, dangerous, destabilizing, and damaging monetary and fiscal times may be ahead. [Here is how I see the situation and how I would propose solving the inherent problems.] Words: 3518

A new financial policy initiative known by the label “Financial Repression” may soon become our worst nightmare. ‘Repression’ rhymes with ‘depression’ which could be what we have to look forward to as rampant price inflation and permanently lower living standards take hold. Get ready to be conscripted into a citizen army assembled for the greater cause of saving the nation from being swamped by a tsunami of debt. Let me explain. Words: 1585

The economy can't be fixed...the old regime of general economic stability and rising standards of living fueled by excessive credit are a thing of the past... The sooner we can accept that idea and make other plans the better... [Let me explain.] Words: 1898

[While] the average country has seen its default risk decline by about 5% this year [25 countries' CDS prices went up; 32 countries saw their CDS prices go down]... the US has seen its default risk rise the 8th most (i.e. 19.28%) out of the 57 countries listed.

We are being bombarded daily with breathy articles about a United States groaning under deficits that surely signal bankruptcy, Social Security checks that eventually won't clear, and of course a looming financial crisis...Much of this commentary is well written - it certainly is popular - but it is total nonsense. [Let me explain.] Words: 960

While there can be little doubt that a default on the U.S. debt would lead to a financial crisis and would likely permanently reduce the role of the U.S. financial industry in world markets, it is also likely the case that the United States would rebound and possible rebound quickly from a default. [It most certainly is not] an end of the world scenario. [Let me explain.] Words: 478

In spite of the spending cuts secured in last week's last-minute budget deal... we are headed for a 50-square-mile iceberg and have just turned the wheel an inch - probably less... [After all,] the $38 billion in cuts represent less than the $54 billion in new debt the U.S. racked up in just the previous week, less than 3% of this year's projected deficit and less than 1% of what the government has projected to spend in 2011... [In fact, such inadequate action has done nothing more than] reinforce expectations that the U.S. is headed for self-inflicted disaster. [Let me explain.] Words: 1066

The United States is facing an unsupportable fiscal situation due to the combination of high deficits, aging population and growth in government-provided healthcare benefits according to a working paper by the International Monetary Fund (IMF). Their forecast implies that U.S. debt will rise rapidly relative to gross domestic product (GDP) in the medium- to long-term unless MAJOR adjustments in taxes and government payments are made to reduce the current fiscal and generational gaps and to avoid any further undesirable escalation of debt. [Let's look at the details.] Words: 790

We Americans have enjoyed an incredibly wonderful standard of living over the past three decades with most of us believing that it was because we are the world's wealthiest, most prosperous nation with economic and financial systems that are second to none - but that is not even close to accurate. [The truth of the matter is that] we are [actually] in the biggest debt bubble the world has ever seen! It has been the greatest party in the history of the world, but it is time to turn out the lights because the party is over. [Let me explain.] Words: 1518

A perfect storm of converging criteria is almost perfectly timed and aligned with the 2012 election cycle. When the moment arrives, the financial earthquake will rapidly demolish the existing highly precarious financial system. Government will stand by helpless, unable to shield itself, much less its vulnerable citizens or private financial institutions from the tsunami of debt and currency destruction. Let me explain. Words: 2055