It's About Liberty: A Conservative Forum
Topics => Economy => Topic started by: Libertas on August 04, 2011, 07:26:48 AM
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Borrowing = 100% of GDP...for now, as the economy dips deeper into the Obama Depression...a lower GDP will swing the ratio deeper and deeper into the red!
::angry::
::cussing::
http://news.yahoo.com/us-aaa-rating-still-under-threat-204040123.html (http://news.yahoo.com/us-aaa-rating-still-under-threat-204040123.html)
And like a said before, this rotten debt deal will not prevent a ratings drop, higher rates are coming!
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Dow down more than 300 right now per the "news".
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Wow...... I'm watching my "investments" melt into the obama halfrican american hole.
Get ready......Our only liberal salvation will be QE3. ::facepalm::
I hate it, but here is a suggestion to anyone listening. As soon as the QE3 talk begins, the market may bounce....when it happens, the market will go up. Something about getting money, no matter how distasteful, that isn't earned.
Be ready to take advantage of the bounce.
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For most of us, if we go to a bank to get a mortgage,
we have to show that our debt to income ratio is at or less than 29%.
The government just came to us to apply to borrow more,
and they showed us that their debt to income ratio,
was actually better described as income to debt ratio,
and that ratio is currently 60%.
That's right, the US income is 60% of the debt.
And the repubs of the house approved the loan.
Feel good yet?
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Market was down 350, it bounced back to just down 312...no doubt Obama will declare that a victory...
And no PPT action sighted as yet...not that they can help in any positive way...
And gold would be higher but margin calls are causing another sell off...depending on the drop I may buy back into more PM's.
http://www.zerohedge.com/news/margin-calls-force-start-gold-liquidation (http://www.zerohedge.com/news/margin-calls-force-start-gold-liquidation)
Italian market shutdown is roiling around the globe too...Europe could be on the eve of some really bad juju!
http://www.zerohedge.com/news/liffe-next-exchange-break-suspends-bond-index-and-swaps-products (http://www.zerohedge.com/news/liffe-next-exchange-break-suspends-bond-index-and-swaps-products)
Betting on stupid is the only way to invest!
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And like a said before, this rotten debt deal will not prevent a ratings drop, higher rates are coming!
Gee I wonder why...
http://politicalcalculations.blogspot.com/2011/08/visualizing-federal-spending-before-and.html (http://politicalcalculations.blogspot.com/2011/08/visualizing-federal-spending-before-and.html)
So, to recap, when compared to the pre-crisis decade of federal government spending, instead of increasing at an annualized rate of 7.35% per year, the total amount of U.S. federal government spending is now projected to only increase at an annualized rate of 6.78% per year, thanks to the so-called "Budget Control Act".
And the GDP will grow at what rate?
Higher rates for debt, or QE3 or both.
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For most of us, if we go to a bank to get a mortgage,
we have to show that our debt to income ratio is at or less than 29%.
The government just came to us to apply to borrow more,
and they showed us that their debt to income ratio,
was actually better described as income to debt ratio,
and that ratio is currently 60%.
That's right, the US income is 60% of the debt.
And the repubs of the house approved the loan.
Feel good yet?
You are forgetting about the money they borrowed from their parents, and promised to pay them back in retirement.
By that measure this is much, much worse.
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Sometimes it is hard to know how far you're falling, especially when you're nose-diving into a dark pit...some won't accept it until they splatter into the bedrock at the bottom!
No flashlight...
No parachute...
Just a certain end!