American Debt/Deficit Spending Crisis (1 Viewer)

accessfleet said:

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.

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I have had a strong reluctance to buying metals such as gold and silver. The problem, they don't pay a dividend while you sit on them. Consequently we have invested in oil companies (black gold). But given all the "quantitative easing" we could be in a position for hyper-inflation.

I ran into a very explanatory u-tube video (Quantative Easing Revealed - It's an Episode of the Twilight Zone) that substantiated my belief that the FED is promoting inflation. Technically, the free market should go through periods of inflation and deflation. So, the FED, by promoting inflation, is 1) effectively devaluing the dollar and 2) reducing the real value of debt through the use of depreciated dollars.

So maybe there is a place in one's portfolio for gold.

Steve R. said:

I have had a strong reluctance to buying metals such as gold and silver. The problem, they don't pay a dividend while you site on them. Consequently we have invested in oil companies (black gold). But given all the "quantitative easing" we could be in a position for hyper-inflation.

I ran into a very explanatory u-tube video (Quantative Easing Revealed - It's an Episode of the Twilight Zone) that substantiated my belief that the FED is promoting inflation. Technically, the free market should go through periods of inflation and deflation. So, the FED, by promoting inflation, is 1) effectively devaluing the dollar and 2) reducing the real value of debt through the use of depreciated dollars.

So maybe there is a place in one's portfolio for gold.

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If only I had bought when Gordon sold.

Smart way to work your money. Worst thing anyone can do is carry a debit with interest incurring upon the balance.
Easier to just chop up the credit cards. I do not use credit cards, when I need to have a card number for online purchases or such I use the Visa Prepaid card, similar to the bank charged for loans of 3-5% but interest is paid up front at point of purchase. Good for online as it can not go overdraught so no one can pick your pocket for more then the card is worth.

statsman said:

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.

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This started as a discussion of USA deficit spending. However, there are other countries in the world that have different problems perhaps traceable to the same problem. That is not having enough money to do what everyone wants to do, because too many hands are in the till. I read an Associated Press article in my Sunday news rag about the unrest in the northern African and middle eastern countries where they have massive unemployment and no new opportunities to correct that condition. They are reaching the point where their graft-riddled governments are being toppled because the people are tired of the political promises.

At the root cause of both the USA tax, debt, deficit crisis and the middle eastern instability, you have a case where there isn't enough wealth to go around to make lives better for all concerned - and that mostly stems from the guys at the top being way too greedy. I'm all for democracy, but sometimes I think summary execution is appropriate for those convicted of taking bribes while purporting to do the functions of government. (OK, just sometimes I think that way...) Of course, if they complain "all I did was take a little off the top, what's your problem?" - I would sharpen my headsman's axe and reply, "That's really all I intend to do to you right now. What's your problem?"

I would suggest these problems are caused by

a) Politicians who are convinced the only way to get elected is to offer tax cuts and

b) An electorate dumb enough to believe that politicians can make their life better by reducing the amount they have to contribute to the governments asset pool

David Eagar said:

I would suggest these problems are caused by

a) Politicians who are convinced the only way to get elected is to offer tax cuts and

b) An electorate dumb enough to believe that politicians can make their life better by reducing the amount they have to contribute to the governments asset pool

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You have just described the US Bread and Circuses economy.