Thursday’s (October 17th 2013) decision to continue
taking on more debt for “economic progress” is analogous to a bankrupt family
applying for a new credit card to pay its old “maxed out credit card bills”.
Of
course, a proper credit check on this family = “F-” and application being
declined. In our case, Moody’s rating of the US Treasury bonds will be “”AAA+”
and the world will be rushing in to give us money. POTUS’s gloating after
raising the debt ceiling reminds me of an old telugu movie song. My
share of the national debt as of
today is $148200. Don’t worry … I have that much saved up …
Technically, it is increasing your credit limit so that you never max out your card. You are good as long as you don't max out. Is is not so?
ReplyDeleteHow long can US go like this? As long as others are willing to lend money to USA.
As long as USA remains a consumption based economy, they have to borrow money from outside. It might not be as bad as every one is saying. If USA stops consuming, what will happen to production based economies like China (and India to some extent)? At least this debt thing prevents China and USA going to war (in other words China overtaking USA). I guess, this is one simple way of looking at it. You and I can escape the debt of $140K+ simply by leaving the country?
sure.. it is increasing your credit limit... i pity the Chinese and Japanese who are lending the money...they are never going to get it back... we will default like we did in the 70's... or inflate away like Weimar republic or Zimbabwe (more on this in the next post) .. they rather unload their treasuries and buy something valuable...
Deleteno if we stop consuming..Chinese economy will not collapse... they have a billion people to consume their own products and improve their living standards. the economy will readjust to a real demand that is not coming from worthless paper.. .. it is simply a myth...