From: G Shaw (milspectruck@verizon.net)
Date: Thu Dec 15 2005 - 11:40:56 PST
Hi Rick
I agree, but they wont be able to do it with inflation because the amount is
now too large. Would you want to buy Argentinian bonds in a country with
75-100% inflation? It will simply provoke the foreign holder who will sell
trying to get out before the next guy, and then the snowball rolls down the
hill.
Katrina relief ??? Who can afford that? They will do it anyway though.
They just announced this afternoon on Bloomberg that Bush has agreed to
build the levees up to an even higher level for our underwater city !
Another neat federal plan funded with more debt. They just can not stop
themselves.
For the MV content imagine how much more the feds can spend on military
vehicles etc when we have to help out the Israelis after they invade Iran
before March they figure.
The way I look at it, every day that we get to live before the collapse is a
gift. Too bad for our kids though.
Glenn
-----Original Message-----
From: Military Vehicles Mailing List [mailto:mil-veh@mil-veh.org] On Behalf
Of Rick v100
Sent: Thursday, December 15, 2005 2:26 PM
To: Military Vehicles Mailing List
Subject: Re: [MV] Chinese Products
Look at the fight over budget cuts to fund Katrina
relief. We have a bridge to nowhere in Alaska for a
poster child.
Not going to happen. I expect US will default or
inflate the debit away.
Rick
--- G Shaw <milspectruck@verizon.net> wrote:
> A little distasteful economics being taught now in
> college, with some MV
> thrown in.
>
> The only way out will be a write off of the US debt
> and a following total
> run and collapse of the value of the dollar, and
> then in turn the collapse
> of every major world currency not solidly backed by
> gold. (The Chinese are
> buying all the gold they can get their hands on
> right now, wonder why). The
> Chinese hold enough US treasuries (and gold) as we
> speak to provoke this at
> any time of their choosing by flooding the market
> overnite with sell orders.
> They hold a weapon far more powerful than their
> nukes. The US is countering
> by preparing to issue its new currency. They
> already have this emergency
> plan in place. There will be no deficit debt load
> on this new currency
> since it will be wiped out in the default. The money
> is already printed and
> ready. They know that the switch over will have to
> happen quickly and there
> will be no time to produce the printed money once
> the sh*t hits the fan.
> The money looks more or less the same but it is blue
> rather than green and
> is in storage now for some time. The losers in this
> deal will be all those
> who are *lenders* in the system, such as anyone with
> a 401K or other plan
> based on stocks or bonds, people who hold Treasuries
> (who have loaned their
> money to the govt) etc. They will have to consider
> those investments gone
> as they are in all countries where a currency
> collapse has happened
> historically. Essentially the economists will tell
> you that this instant
> transfer of wealth back to the government from the
> losers who are wiped out
> is what restarts the economy.
>
> Drastic cuts in they way we do business will be
> needed to avoid all this.
> And for the MV content; it is assumed by the Rand
> Corporation synopsis that
> a war will result followed by a rebuilding of most
> of the world. Everyone
> in top positions know that severe protectionist laws
> allowing for trade with
> other countries using an applied duty based on the
> difference between the US
> and foreign wage scales where the product is
> produced, coupled with
> draconian government spending cuts to begin in the
> next couple of years will
> avert this world catastrophe that is building up. I
> believe that soon most
> legislators will realize that the non-war solution
> is less painful than the
> war/dollar default one. We shall see. Maybe not.
> Soon.
>
> Glenn
>
>
>
> -----Original Message-----
> From: Military Vehicles Mailing List [mailto:mil-veh@mil-veh.org] On
> Behalf Of Hutterer, John (MPAU)
> Sent: Thursday, December 15, 2005 12:10 PM
> To: Military Vehicles Mailing List
> Subject: Re: [MV] Chinese Products
>
>
>
>
> Here's an interesting bit of information that was
> published in the local
> paper a few weeks ago. A nationally known economist
> was in town to give a
> lecture to the business community, and the paper
> quoted some information
> from his latest book. Unfortunately, I don't
> remember his name.
>
> The national debt is growing. It is growing very
> fast. By the year 2042 ( a
> long time from now? No actually only 37 years) it
> will be so great that it
> will be equal to 6 times the Gross National Product
> of the United States.
> Much of the National Debt is owed to foreign
> countries, since they are the
> only entities that are wealthy enough to buy our
> bonds in quantity. In 2042
> it will take 95% of the total tax money collected by
> the federal government
> just to pay the INTEREST on the National Debt. That
> leaves the remaining 5%
> of the taxes that are collected to fund the rest of
> the government. Try
> paying for Defense and Social Security with only 5%
> of the budget. This is
> the scenario as it relates to the programs that are
> currently in force under
> the Bush administration. If the policies that were
> put in place by the
> Clinton administration had been followed, the above
> figures would have also
> been true, but they wouldn't have occurred until
> 2052, or ten years later.
> In reality, it isn't much of a difference. The point
> of this is that the US
> is heading towards bankruptcy. At some point in
> time, we are going to owe so
> much money to the rest of the world, that they are
> going to basically be
> able to "foreclose" on us. Of course, that isn't how
> nations operate. I
> honestly have no idea what will happen, but it sure
> doesn't look good.
> Personally, I believe that this is just another
> example of how we, as a
> nation, have made "me first" a national mantra.
>
> Hoping there is a way out of the mess...
>
> John H
>
>
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