Massive US Debt

[Magox]

Another round of bailouts quietly in the works?

 

http://www.nytimes.com/2009/12/17/business...zbSYPuwpuAwwPPw

¶Fannie Mae and Freddie Mac, which buy and resell mortgages, have used $112 billion — including $15 billion for Fannie in November — of a total $400 billion pledge from the Treasury. Now, according to people close to the talks, officials are discussing the possibility of increasing that commitment, possibly to $400 billion for each company, by year-end, after which the Treasury would need Congressional approval to extend it. Company and government officials declined to comment.

 

This dwarfs the total amount that we lent to the Big Banks. Just like that.

 

Meanwhile, the W.H is putting the squeeze on the banks and Fannie, Freddie to lend more, their strategy is LEND LEND LEND, it doesn't matter that the economic conditions warrant less lending, but NO, LEND LEND LEND. :wallbash

 

Amazing how this one is flying under the radar, of course it would need congressional approval and I am pretty certain that this will get alot more air play than it has.

[Jim in Anchorage]

Ah, the beauty of the argument totally ignoring Stevens' 30+ yr history of massive pork projects for Alaska, because the state paid for it. And where did the state get the money? From taxing natural resources of course, which in Alaskan definition belongs to the state and not federal government. But there's absolutely no problem in holding the hand out for federal subsidies to ensure the flow of those natural resources to the lower 48. Sorry that you don't see the hypocrisy in your position.

 

And yeah, more land should be made available for development in exchange for Alaska paying its fair share.

Alaska selected the land that turned out to have oil [and I cannot emphasize turned out enough] during the statehood process. It is Alaska's land, Alaska's oil.

You are a wealth of misinformation. The oil pipeline was 100% privately built by the oil company's with zero federal dollars. In fact it was only the Arab oil embargo in 1973 that persuaded the Feds to allow it to be built at all, never mind subsidies.

Their only real role was to step out of the way.

[GG]

Alaska selected the land that turned out to have oil [and I cannot emphasize turned out enough] during the statehood process. It is Alaska's land, Alaska's oil.

You are a wealth of misinformation. The oil pipeline was 100% privately built by the oil company's with zero federal dollars. In fact it was only the Arab oil embargo in 1973 that persuaded the Feds to allow it to be built at all, never mind subsidies.

Their only real role was to step out of the way.

 

Then why does Alaska need to be a net receiver of federal funding if it's doing so well that the state doesn't have a sales tax and pays a stipend to every citizen?

[DC Tom]

Then why does Alaska need to be a net receiver of federal funding if it's doing so well that the state doesn't have a sales tax and pays a stipend to every citizen?

 

Wildlife and "indigenous peoples".

[Alaska Darin]

Then why does Alaska need to be a net receiver of federal funding if it's doing so well that the state doesn't have a sales tax and pays a stipend to every citizen?

Need? They don't, though a sales tax/income tax on such a small and fragile economy would kill any possible expansion. Have the most effective legislators at bringing home pork? Check. Welcome to the system as it's set up. When Ted Stevens/Frank Murkowski/Don Young were serving together, Alaska had BY FAR the longest tenured delegation with the most access to the right committees. They put in place a ton of crap that has long term payback to the state - some of which is a finger to the fed for not living up to most of the guarantees that were promised in exchange for statehood, but most of which are just the kind of stuff that keep emperors in charge of their empires (welcome to why Stevens still almost beat Begich for his seat after being convicted of a felony).

 

That doesn't change the fallacy of your statement on why your taxes are so high. My federal tax rate is exactly the same as yours.

[GG]

Need? They don't, though a sales tax/income tax on such a small and fragile economy would kill any possible expansion. Have the most effective legislators at bringing home pork? Check. Welcome to the system as it's set up. When Ted Stevens/Frank Murkowski/Don Young were serving together, Alaska had BY FAR the longest tenured delegation with the most access to the right committees. They put in place a ton of crap that has long term payback to the state - some of which is a finger to the fed for not living up to most of the guarantees that were promised in exchange for statehood, but most of which are just the kind of stuff that keep emperors in charge of their empires (welcome to why Stevens still almost beat Begich for his seat after being convicted of a felony).

 

Not going to argue there and at least you own up to the piggery of the ruling class.

 

That doesn't change the fallacy of your statement on why your taxes are so high. My federal tax rate is exactly the same as yours.

 

It would be fallacious if the argument was solely about federal taxes. But because money is fungible, my state tax is a bit high because we're a net payer into the system. Not saying that this wonderfully happy state couldn't improve the way it conducts its business. But the main argument is that paying for the graft internally and still subsidizing other states (where I have 0 representations) wears on a guy, such that hearing someone say that my taxes aren't contributing adds to the unhappiness state.

[Alaska Darin]

Not going to argue there and at least you own up to the piggery of the ruling class.

Own up to it? It's been the basis of my politics for as long as you've "known" me.

 

It would be fallacious if the argument was solely about federal taxes. But because money is fungible, my state tax is a bit high because we're a net payer into the system. Not saying that this wonderfully happy state couldn't improve the way it conducts its business. But the main argument is that paying for the graft internally and still subsidizing other states (where I have 0 representations) wears on a guy, such that hearing someone say that my taxes aren't contributing adds to the unhappiness state.

Ridiculously cherry picked argument. Don't like it? Move to a different state since it's obvious you can't fix your own. Don't like the rules, change the game.

[GG]

Own up to it? It's been the basis of my politics for as long as you've "known" me.

 

Just a point of comparison to others.

 

Ridiculously cherry picked argument. Don't like it? Move to a different state since it's obvious you can't fix your own. Don't like the rules, change the game.

 

Not cherry picked, just acknowledging reality. The electoral college system made this possible, and I'm not about to start a movement to abolish that.

 

To reiterate, my beef is not about the income redistribution, it's the fact that people in rural states don't want to acknowledge it. Like the canard WNY likes to trot out that they pay for the spoils of downstate NY.

[Alaska Darin]

To reiterate, my beef is not about the income redistribution, it's the fact that people in rural states don't want to acknowledge it. Like the canard WNY likes to trot out that they pay for the spoils of downstate NY.

Considering the political capital that downstate holds over them and the incredible job loss that it's led to, their rationale is valid even if the data is completely flawed.

 

I think South Park covered this best.

[ExiledInIllinois]

The only reason Eric continues to repeat his ridiculous point is he and nozzle thinks it bothers me.

 

No, you are wrong Darin. The only reason I repeat this is because it bothers me, Eric, first and foremost! You just happen to live in a state that acts dishonorably. We as the United States should be working as a team, yes 50 different states working as ONE.

 

And the analogy fits perfectly. I am not saying that states have to be there totally for everybody else, but at least don't book out on the repsonsibility of being part of the union.

 

"We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America."

 

That is NOT "me", "myself", or the state of Montana that is being talked about in bold type.

[ExiledInIllinois]

Ridiculously cherry picked argument. Don't like it? Move to a different state since it's obvious you can't fix your own. Don't like the rules, change the game.

 

Yep. And that is exactly what states like AK and the Inter-Mountain West have been attempting to do. Your sentiment is exhibit A on how states are behaving.

 

"Sorry guys, the wife is pissing and moaning, gotta go home... Catch you later. [as the door slams and the wheels screetch out of the parking lot]."

 

Everybody wants something for free, everybody likes a leg up, at least act honorably.

 

Say what you want about the Fed and their motives in the west and appalachia, the intent was well intended... And it should still be across the union.

[ExiledInIllinois]

Not cherry picked, just acknowledging reality. The electoral college system made this possible, and I'm not about to start a movement to abolish that.

 

I totally agree. Also 2 Senators per state.

 

As much as I hate "upside down" elections, especially 2000, I never advocated to change the electoral college system.

[/dev/null]

That is NOT "me", "myself", or the state of Montana that is being talked about in bold type.

 

What does Hannah have to do with any of this?

[ExiledInIllinois]

What does Hannah have to do with any of this?

 

 

I don't know... All I know is Darin and his ilk want the "limo out back and shoes in every color."

 

"Gee guys... Now that our region has been made geographically viable by others... Eff off... Don't tread on me!"

 

[Alaska Darin]

I don't know... All I know is Darin and his ilk want the "limo out back and shoes in every color."

You're incredibly full of crap. My residence and what they get from the Federal government has nothing whatsoever to do with me. In fact, it has far more to do with people like you and who YOU vote for at every level.

 

Look in the mirror, problem child and stop displacing.

[Pine Barrens Mafia]

displacing.

 

Point of order:

 

I don't think that word should be used in that context.

[ExiledInIllinois]

You're incredibly full of crap. My residence and what they get from the Federal government has nothing whatsoever to do with me. In fact, it has far more to do with people like you and who YOU vote for at every level.

 

Look in the mirror, problem child and stop displacing.

Correction... What they have received.

 

Yes it does... Because there would be no residence as you know it today where you live. Note, I said: "as you know it today."

 

The problem is that I look in the mirror too much, you not enough. One's gotta know where one comes from before they can look forward. Incredibly stupid of you to be at point A and say without a thank you: "Let's move to point B." That seems to be the whole existence of your ungrateful life, or at least by what you puke out on this board.

[Alaska Darin]

Correction... What they have received.

 

Yes it does... Because there would be no residence as you know it today where you live. Note, I said: "as you know it today."

Now let's talk about shoulda/coulda/woulda. It's nice to see you display your hypocrisy ON THE VERY NEXT POST.

The problem is that I look in the mirror too much, you not enough.

The problem is you're a mouth breather.

One's gotta know where one comes from before they can look forward. Incredibly stupid of you to be at point A and say without a thank you: "Let's move to point B." That seems to be the whole existence of your ungrateful life, or at least by what you puke out on this board.

I'd ask you to explain what that menagerie of words actually means but I'm afraid your tiny brain would explode trying to put something together.

 

The "fact" of the matter is people like you have created the system because you're fools. You follow blindly along then you whine like school children because you have no forethought about consequences or recognition of things that haven't worked in the past.

 

It's quite comical, really.

[ExiledInIllinois]

Now let's talk about shoulda/coulda/woulda. It's nice to see you display your hypocrisy ON THE VERY NEXT POST.

 

The problem is you're a mouth breather.

 

I'd ask you to explain what that menagerie of words actually means but I'm afraid your tiny brain would explode trying to put something together.

 

The "fact" of the matter is people like you have created the system because you're fools. You follow blindly along then you whine like school children because you have no forethought about consequences or recognition of things that haven't worked in the past.

 

It's quite comical, really.

 

Oh really? Wow, that is quite a judgement.

[Magox]

Interesting article.

 

Canada could face "serious" economic consequences should the United States fail to address its bulging budget deficit, warns Finance Minister Jim Flaherty.

 

"The situation in the United States is serious in terms of the size of their deficit," Mr. Flaherty said in an interview. "That is a persisting concern" for the Canadian economy, as the United States is by far Canada's largest trading partner.

 

While Mr. Flaherty expressed confidence about Canada's economic prospects this coming decade as the country taps new emerging markets, he also acknowledged one of the big threats – namely, the U.S. fiscal situation, which analysts describe as "horrendous."

 

The U.S. deficit this year, estimated at US$1.4-trillion, will be at its highest level as measured as a percentage of GDP since the Second World War. Furthermore, the debt-to-GDP ratio in the United States is expected to surpass the 100% threshold in 2012. (In contrast, debt-to-GDP in Canada is expected to peak next year, at 79%.)

 

To address this, U.S. legislators must opt to either control spending growth or raise taxes - both of which could crimp U.S. demand, which is a key component of Canadian economic growth. Unless addressed, there is also the risk that long-term borrowing costs will surge upward, throwing the North American economy into another tailspin.

 

I found this interesting, which bodes very well for my business.

 

Mr. Flaherty isn't the only person warning of Washington's need to restore fiscal order. Last week, former U.S. Federal Reserve chairman, Alan Greenspan, said the country was on the path toward a "formidable" fiscal crisis unless tackled shortly.

 

Furthermore, a recent paper prepared for the U.S. National Bureau of Economic Research suggested Washington might try to deal with its monster debt by allowing inflation to rise, thereby eroding the real value of the debt held by creditors - of which China is at the top of the list. Inflating away debt was a tactic tried following the Vietnam War, but kicked off a nasty inflationary spiral that saw inflation surge in the United States from 1.4% in the early 1960s to 13% by the time the 1980s rolled around.

 

Gold is going to go sky high.