American Debt/Deficit Spending Crisis (1 Viewer)

[PNGBill]

Water is an essential element but often hyped when discussed.
Less then 1% of the water used in a home is for drinking - ie needs to be Pure.

Many cities in Europe have long since forgotten about drinking tap water and the residents, that can afford to, buy bottled water which of course is sold at a higher price then a "soda" water when it is essentially the same product and often from the same supplier.

If Agriculture could reduce there water usage by 10% most developed countries would have little problems with residential water needs.

You may be told to turn off your garden hose yet 20 miles away a farmer is blasting tonnes of water over his crops when there are proven methods to at least half the amount of water needed for the same crop yield.

 

[Thales750]

A lot of things have changed and will continue to change. One of these may well be the Definition of a Super Power.
India and China may well have a large army but this doesn't mean as much as it may have 100 years ago.
eg even a USA with half the resources it has now can better deploy a "strike force" in most parts of the world then either India or China.
The concept of an Invasion Fleet eg D Day, being formed and delivered is virtually impossible against a target that has satellite and cruise missile capabilities.
Countries like the USA will always have a certain strength in that they are able to feed themselves, defend themselves and have nearly all the natural resources when push comes to shove.

Will they always be able to come to the aid of a South Korea - No this will not be a Given but just as the USSR imploded so will any other bloated empire, in time.

Food may well be the future economy of the world and until a country can feed itself they will always need to either trade, conquer or starve.

We are in accordance in this.

And I say that the next global conflict will be fought with starvation as the primary weapon.

Many people say water, because the lack of it is faster to kill. But food travels further and in much more concentrated, exposed, and vulnerable routes.

I think you need to look to England (or Great Britain) to see the future of the USA. We are an Island Nation. Island Nations have a better chance in the big picture than others.

Eighty percent of the world population lives in urban areas, so when the next war comes, we will see a massive depopulation. And good riddance. There are entirely too many people on the planet as it is.

In the mean time, buy land closer to the food supply (American food travels 1500 miles before we eat it), and invest in biodiesel, natural gas, and desalination processes.

Actually it won’t require a war to alter the populations; simply a collapse of the economy will have a considerably more dramatic effect on people because of the urban concentrations.

If a nation or its individuals are going to survive the next man made holocaust, they will be required to look outside convention and position themselves to continue the food supply.

North America, Australia, and Brazil, will most likely emerge at the top of the next global conflict.

 

[the_net_2.0]

thank you so much Thales. If I want an uplifting experience, I'm certain that it's not you I'll be coming to. Whew! Good to know!

I hope you don't go to work with that attitude.

 

[Pauldohert]

We are in accordance in this.

I think you need to look to England (or Great Britain) to see the future of the USA. We are an Island Nation. Island Nations have a better chance in the big picture than others.


North America, Australia, and Brazil, will most likely emerge at the top of the next global conflict.

Uh? Can you paraphrase that?

 

[Thales750]

Uh? Can you paraphrase that?

What do you mean?

 

[Thales750]

thank you so much Thales. If I want an uplifting experience, I'm certain that it's not you I'll be coming to. Whew! Good to know!

I hope you don't go to work with that attitude.

Sorry Brother, I do see great potential though. It's just that humans seem to need massive die-offs every few hundred years to get some perspective.

 

[the_net_2.0]

Sorry Brother, I do see great potential though.

everyone with intelligence in this world sees the same thing Thales, but the *smart* ones don't mention it, because it isn't too damn positive! there ARE people still in this world that aren't gifted enough to realize things like this. So, let's let them continue to live in peace, okay bud? stop spreading the 'good word'.

 

[Thales750]

everyone with intelligence in this world sees the same thing Thales, but the *smart* ones don't mention it, because it isn't too damn positive! there ARE people still in this world that aren't gifted enough to realize things like this. So, let's let them continue to live in peace, okay bud? stop spreading the 'good word'.

You are correct; lately I have been dwelling in dark places. I should go do some volunteer work, I would have meaning.

 

[the_net_2.0]

You are correct; lately I have been dwelling in dark places. I should go do some volunteer work, I would have meaning.

It would also keep you busy, and keep on smiling. Forget about it. There's already too many people that complain all day. 8-5 everyday, you hear it, blah blah blah...I've cut people off aggressively before because they started rambling about pointless crap.

Sometimes you almost have to slap them in the face to get them to shut up! Ya know? blah blah blah....so what's for dinner?

 

[statsman]

To return to the original point (after a five day lull), the US Republican Congress and the Democratic White House reached a compromise today.

Seems the Congress wanted Bush's tax cuts to be extended. Oboma wanted unemployment benefits extended. Both sides said yes to the other side. This means taxes will not be going up and that benefits will be extended without any tax increase to fund them. Guess who will be paying for this largess. Your grandchildren.

 

[Thales750]

To return to the original point (after a five day lull), the US Republican Congress and the Democratic White House reached a compromise today.

Seems the Congress wanted Bush's tax cuts to be extended. Oboma wanted unemployment benefits extended. Both sides said yes to the other side. This means taxes will not be going up and that benefits will be extended without any tax increase to fund them. Guess who will be paying for this largess. Your grandchildren.

You're assuming the economy recovers by then.

 

[PNGBill]

Govts are assuming the economy of the future will cover their spending today.
If we subscribe to the cycle theory (based on actual history) then as soon as we have a recovery, the next down cycle is only so far away.
In the past, an up cycle has been an opportunity for growth and investment.

The next one or two will just be paying off debt.

 

[Steve R.]

Govts are assuming the economy of the future will cover their spending today.
If we subscribe to the cycle theory (based on actual history) then as soon as we have a recovery, the next down cycle is only so far away.
In the past, an up cycle has been an opportunity for growth and investment.

The next one or two will just be paying off debt.

We may also be in a situation where the Government desires massive inflation as a means of "reducing" the debt through cheaper dollars. Even with inflation, it may not be possible to cover our debt at the rate it is growing.

I haven't quite put a finger on it yet, but I have heard rumblings to the effect that there are inflation targets and that deflation is to be squelched. The obvious conclusion that inflation has been incorporated into the US economic structure.

(Technically, if we wish to preserve the the value of the dollar (as a constant dollar) we need to let deflation occur and not subsidize growth by printing money.)

 

[Thales750]

Wealth creation is the primary economic functions. All other economic activities are dependent upon it. Together wealth creation and economic activity create the economy. A fundamental understanding, by the general population, of this concept is necessary if we are going to influence our government to make the right decisions. And subsequently lead us out of economic trouble.

Wealth creation is defined as taking something of lesser value and through a process make it into something of more value. Constructing a home creates wealth, selling one for more than you bought it for, does not.

So let’s examine some numbers. The US economy is 14.6 trillion, with 11% in manufacturing (down from 33% in 1965). So 1.6 trillion is the foundation for the other 13 trillion. The current US trade deficit is .6 trillion. So let’s say we stop arguing about all the BS and focus on reducing this number.

Reducing the trade deficit to 0 (we used to be the world’s largest exporter, but that is a whole other story) and using the same ratio we now have for wealth creation to economic activity; we will see an increase in our overall economy by 5.45 Trillion. Now if at the same time we arrest the increase in health care cost and limit the growth of government we will se the trend move towards a better life for our children.

This will not happen overnight, and as I reported in a previous thread our elected officials are reluctant to pass tax laws making it beneficial for companies to provide American jobs. People on this very forum said they were glad that the law did not pass.

Giving the tax breaks to the wealthiest without including an incentive program to invest in American jobs is pure stupidity. And only returns $.40 cents per dollar, whereas $1 dollar spend on employment insurance creates a $1.5 instant economic boost.

It’s time to take the country back from the ultra rich multinationals. By the way this is not class hatred, or envy. Making a quarter of a million or even 2 a year doesn’t make you rich. Rich is defined in this context as the ability to move billions of dollars around the globe and directly affect the lives of hundreds of millions of people.

Thanks for reading this.

 

[PNGBill]

How many people are employed and earn a lot of money just watching over our Superannuation savings?

They don't Use It. Just watch it and report back to us if it has gone up or down and get their %cut.

I know we can't all line up and buy shares every week, fortnight or month but I can see how this service industry has become a form of perpetual motion - so long as we keep working.

Service Industries where you are a delivery, Cleaner, database Consultant even, do add to the Economy in the sence of Thales750 post but Financial services must have some questions to answer but of course, this back to the beginning of our problems.

 

[Thales750]

The four biggest financial firms, have holding equivalent to 25% of the GDP.

40% of all profit made in the US in the last year was made by financial institutes. With total employment in the sector at 7.5 million employees, it is easy to see why jobs have left the country. There is much more profit in financial services than in actually building things.

Indicative of this phenomenon is that American firms maintain the largest international holdings than any other countries. Taken alone this is not a bad thing, but we must force congress to pass tax laws to give incentives to move jobs back.

Fortunately this is the right time to initiate this transfer of resources back to hiring Americans. With unemployment running at its highest levels in 80 years; investment will yield higher results than in the last three decades of virtually full employment, which is judged to be approximately 4%.


People should stop wondering why we are having this crises and get the Congress to stop voting in laws to protect these financial services companies.

In 1911 the US Congress broke up the Standard Oil Company, ending a mutli-decade enslavement of American worker. But more to the point, after the break up the disparate parts created more wealth than the conglomerate had. It is time to lobby, from the American people, the biggest financial service companies must be disinvested of most of their holdings.

Too big to fail is too big for any ones good.

 

[accessfleet]

You can't save money by spending it. I just paid off my Sears account. (my Christmas present for this year) And now I am goning to work on Capital One.


I can't do anything about the country, I have decieded they don't know what they are doing and I am not going to follow..

I followed their lead getting into debt, maybe they better follow my lead getting out of debt.

 

[statsman]

I rarely use credit cards. When I do I use them it is similar to a cheque.

I charge the item, go on my online banking computer and pay it off as soon as I get home. This way you are not paying interest. A loan at the bank averages 3-5%. Credit cards are still charging in the area of 18%. If you have a large credit card balance, you should have borrowed to pay it off several years ago. If you didn't, you have probably already paid hundreds or even thousand of dollars you didn't have to.

When economic times are troubled, the price of gold always rises. All of the economists will tell you that gold is an anachranism. Yet it is still the best barometer of how secure people and governments feel. I buy gold (not a lot but some) when times are good and its cheap (say $500 an ounce). I sell it when it hits around $1300. I keep my profits and the investment money goes into a special account at the bank. When times are good again, I buy again.

I recently sold. This is the fifth cycle I have concluded using this principle.

 

[Thales750]

I rarely use credit cards. When I do I use them it is similar to a cheque.


I recently sold. This is the fifth cycle I have concluded using this principle.

Good Thinking

 

[accessfleet]

A few years back I noticed that gold was selling at $260.00 per ounce. I bought around eight ounces. Some I used as college graduation gifts for my children. Things got tight wor a while and I sold 4 ounces between $900 and $1000 each.

I have thought if it ever goes down again I might buy more. I guess we'll see if I ever get the chance. For now it looks like the price direction is up only.

BTW Having the gold was a good feeling for the years I had it.