SD Jarhead Posted November 12, 2008 Share Posted November 12, 2008 Good times for the US Gov't. http://www.cnbc.com/id/27641538 And the corporations keep coming at us with their hands out... http://biz.yahoo.com/ap/081112/american_ex..._bell.html?.v=1 Who's next...Walmart? But seriously, it's possible that the Gov't could become bankrupt. Then what? Actually, I know the answer to that one and it falls into one of the Dwight Drane scenarios that nobody wants to consider... Link to comment Share on other sites More sharing options...
Chef Jim Posted November 12, 2008 Share Posted November 12, 2008 But seriously, it's possible that the Gov't could become bankrupt. Then what? Actually, I know the answer to that one and it falls into one of the Dwight Drane scenarios that nobody wants to consider... The gov't cannot go bankrupt due to their ability to raise revenue through taxation. But that'll will be difficult because The Big O is not raising taxes on 95% of the population. Link to comment Share on other sites More sharing options...
Lurker Posted November 12, 2008 Share Posted November 12, 2008 "As for a stimulus package, there is not much of an industry left to stimulate back into life, Hennecke said." What an ass clown. Economic growth may be contracting now, but the U.S. still produces over $14 trillion of GDP annually...three times the output of #2 Japan. Even if real GDP were to somehow shrink 26% over the next four years (the decrease recorded between 1929-33), the U.S. economy would still be twice as large as any other nation. Here's the Tyche Group's investment advice, which seems dead wrong to me in a deflationary environment: "Holding some cash for emergencies is warranted and prudent, but holding 100 per cent cash could turn out to be one of the riskiest strategies of all, due to the risk of rapidly accelerating inflation in the US and globally. One should seek to hold a good percentage of a portfolio in real assets, which could be gold, agricultural commodities, or equities in healthier economies than the US, such as China, where the crisis has opened up attractive value investment opportunities." Link to comment Share on other sites More sharing options...
SD Jarhead Posted November 13, 2008 Author Share Posted November 13, 2008 The gov't cannot go bankrupt due to their ability to raise revenue through taxation. But that'll will be difficult because The Big O is not raising taxes on 95% of the population. What happens when people or nations refuse to lend to us or, better yet, attempt to redeem their debts? Can't happen, right? Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted November 13, 2008 Share Posted November 13, 2008 As a Fed gov't employee, I have no doubt that they will raid my personal nest egg that I have been saving all these years. That and either start canning or cutting wages in half... It has been done before... Maybe many others and I have to swallow the same bitter pill that people like my grandfather had to during the Great Depression. After that? When the numbers get high enough through all sectors... Grab the pitch fork and march on the Capitol. Though, I have no doubt that my family WILL survive. That belief and my faith can't be taken away. People will have to deal with it the best they can. Link to comment Share on other sites More sharing options...
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