This fiscal year, the deficit will rise to about 13 percent of G.D.P., more than twice the non-wartime record. In dollars, that equates to a staggering $1.8 trillion. Fiscally, we are in uncharted territory.
Assume, in a relatively benign scenario, that all of this is directed by the recipients — China leads the list — to purchases of United States debt. Never mind that this all-Treasuries allocation is no sure thing: some countries may decide that purchasing American stocks, real estate or entire companies makes more sense than soaking up dollar-denominated bonds.
He also gets right on when he says gov’t uses inflation to tax people:
Legislators will correctly perceive that either raising taxes or cutting expenditures will threaten their re-election. To avoid this fate, they can opt for high rates of inflation, which never require a recorded vote and cannot be attributed to a specific action that any elected official takes.
What do you guys think about government intervention on the economy and Obama/Bush policies on it?
Buffett is one of the prime reasons Obamageddon impoverished the USA…he will be on the list of economic criminals the Reconstruction Government will prosecute.
Alfred1,
how is it that you have time to post to this blog all day?
You say you work for a living? I have to question that because I can’t think of any job that a wack-job like you could do in any satisfactory way.
You have a very big problem, it’s a cancerous, hollow tumor growing right between your ears.
phydeau # 59 – right on the money lol.
#62 the smartest man in the room asked
“Alfred1, how is it that you have time to post to this blog all day?”
Because he’s the one true socialist on this blog. Translation: he’s on the pogey.
Finding 1.8 trillion.. Just make the people who stole it over the last eight years give it back.
I reckon the post is decorous and on the point. This brief in point of fact helped me in my assignment.