norom

The U.S. Debt Quandary

Americans are spoiled. I say that because we never really understood the concept of supply shortage, except for a brief period in the 30's, (yes I know the depression lasted up to the 50's but the supply shock of the hawley-smoot tariff act was fast and brief).

We always favor inflation over recession, and can't understand why countries like Germany and Japan actually PREFER recession to the alternative.

We HAVE GOT to stop panicing over the R-word and shrugging our shoulders over the I-word. There is nothing on earth more destructive to a society than inflation, it has greater economic impact that war. We have to choose recession over inflation.


On Dec 03 07:33 AM paultaut wrote:

> Our's is a Service Economy supplemented by the farming sector. The
> Manufacturing base of the 60's and 70's has long departed.
>
> There is no manufacturing base to save. An assembly line is not a
> manufacturing facility. The parts suppliers get their parts from
> external facilities imported into the US, primarily.
>
> I say: Issue as much Debt as quickly as possible before anyone has
> time to react. Buy foreign debt, for future use as collateral. Rebuild
> the Manufacturing base. Let the dollar collapse to let us repay with
> crap. Get the people to buy American by imposing 100% tariffs on
> all imports except oil and other commodities needed by our Manufacturing
> base.
>
> Do all at the same time as rebuilding the infrastructure with Solar
> and CNG facilities along the way.
>
> Yeah, Yeah, he's off his his Rocker. Just wishful wishing on my part.
> Its early in the morning, maybe i'm still dreaming.