• jdub2788
    "The Spanish are running out of their ability to pay that debt down. Their debt and interest carry costs are rising faster than their GDPM."
    10/3/12
    Reply (16)
    • jdub2788: "Significantly faster. Not just a marginal number." http://yhoo.it/RxTSey
      10/3/12
    • jdub2788: The USA is in *much* worse shape. We are borrowing $6 in new debt for every $1 in new income. Our short term interest rates 1.7% vs GDPM 1.7%
      10/3/12
    • jdub2788: In other words, our debt is growing 600%+ faster than GDPM growth.
      10/3/12
    • jdub2788: This is far and wide worse than any EU member, and I'd have to do the math, but it may be worse than the entire EU nation block COMBINED.
      10/3/12
    • anonymous#12: Debt doesn't matter. Those who care about debt live under stress, the rest enjoy their times.
      10/3/12
    • Hypnos7: anonymous: that's why interest on Greek 10-year is 19%, and interest on German 10-year is 1.4%
      10/3/12
    • jdub2788: anonymous - in fairy tale land, you may be right. here on earth, debts have to be repaid. Honestly, I hope you're right and I'm wrong.
      10/3/12
    • jdub2788: interest rates and inflation are two checks and balances to debt loads. the USA is going to have 70's style interest and inflation soon.
      10/3/12
    • jdub2788: maybe worse since the fundamentals of our economy is much, much worse.
      10/3/12
    • anonymous#12: I was talking about the US as we can print money, Greece can't. Remember that the interest payments are remitted back to the treasury.
      10/3/12
    • Hypnos7: Once bond buyers realize that the primary tool repay the bonds is inflation instead of revenue growth, yields will skyrocket
      10/3/12
    • Hypnos7: Japan, which pays 2% on its bonds, already outlays half its annual federal budget for debt servicing. It's a coiled spring ready to pop.
      10/3/12
    • Hypnos7: *corrections: 1% interest, and 25% of the budget is debt servicing.
      10/3/12
    • Hypnos7: Japan's aggregate cash savings is now less than the budget deficit.
      10/3/12
    • jdub2788: printing money is the problem, not the solution. now I can see where anonymous comes from when he posts. my boat is a lonely boat.
      10/3/12
    • jdub2788: if we could just print money, why would anyone work? im totally down for that!
      10/3/12