Whippet

Do You Believe Borrowing Leads to Prosperity? (Part 2)

Your GDP numbers are based upon a lie. Go here and see the real chart.
www.shadowstats.com/al...
The deflator used to calculate current numbers was critically wounded in the early 90s when CPI was bastardized by the BLS. (BTW, this was a brilliant underhanded way to steal more money from fixed-income Americans). Take the 30 year slope of that line and extrapolate it- not very promising.
50% may not be as far away as you think.


On May 07 04:19 PM kennypowers09 wrote:

> I think the current economic numbers show we are in far from a 50%
> reduction in GDP (of which those in the Great Depression experience)
> than that of our current yoy -2.6% GDP. The Chinese are far from
> calling the shots. As you well know they are still an infant and
> are still an export driven economy, with very important ties to the
> US consumer. When they flip the switch...then maybe they will be
> calling the shots. While they are certainly the largest US debtor,
> it takes two to tango, are rely just as heavily on our ability to
> return that principal than simply "running the show". They are simply
> hedging the weak dollar by buying commodities and materials, and
> for very good reason. The fact they ARE able to make such manuever's
> is their ability to use sovreign wealth funds, of which the US is
> simply far behind the 8 ball in terms of being able to participate
> in the global rat race for resources. Of course Ron Paul would never
> allow the US to do so, which makes China's ability to "control the
> world" inevitable and your complaining useless.

Do You Believe Borrowing Leads to Prosperity? (Part 2)

So, Kenny, you must have made a fortune when you shorted Bear Stearns last year- my hat's off to you. Most institutional investors saw NOTHING coming and got hit by a truck. Surely you made even more on the collapse of Lehman and AIG, since you had precedent? And if you read the rest of my comment, I did say that: "A little debt promotes capitalization. A lot of debt promotes capitulation." Morphine is a blessing of a painkiller. Heroin addiction destroys. I'm not frightened at all. I thank God daily that I live in interesting times, and could make a difference. I eagerly await the collapse of the house of cards. I rejoice when the markets fall, because it's an acknowledgment of TRUTH over LIES. The market valuation should be based on EARNINGS, not ACCOUNTING FRAUD. I smile when the dollar DROPS, because I'm in REAL MONEY. And I'm not betting on Dow 25,000 for my savings.


On May 07 03:36 PM kennypowers09 wrote:

> "I'm sure that Bear Stearns had a well-controlled debt structure,
> aren't you?"
>
> Seriously? Cmon...as I said there is a significant difference between
> a well controlled debt level and being levered to the gills. company
> that can slip inslide the SEC regulation of a specificed level of
> cash checked every year, and become so levered to explode in just
> a few months. Most institutional followers saw that coming and stop
> being the counterparty several month's prior to meltdown. What you
> are comparing is apples and oranges. Not all debt is equal. While
> its healthy to have a inate hatred for debt, historical evidence
> shows that well controlled debt (let us not forget controlled SPENDING
> as well) can be maintained and work in the short term to advent severe
> cycles.
>
> "You see, you don't control debt- DEBT CONTROLS YOU."
>
> Ironic...I guess the debt that been in place in this country for
> over 200 years has taken control of us right? yeah...no significance
> that the GDP, quality of life, standards of living have all increased
> at the same paces.
>
> I think your just scared. Its certainly natural...a majority of the
> individuals on this board and in this country have never been through
> such a period we are entering.
>
> "Guess that's why I'm not a liberal."
>
> Neither am i.
>
>

Do You Believe Borrowing Leads to Prosperity? (Part 2)

So, you are a proponent of the "what would my monthly payment be?" lifestyle, in other words... Let's just apply it to the government, as well!! The problems with a "well-controlled debt structure" are manifold; I'm sure that Bear Stearns had a well-controlled debt structure, aren't you? You see, you don't control debt- DEBT CONTROLS YOU. Proverbs tells us that the debtor is a SLAVE to his creditor. (Yeah, if King Solomon saw the Chrysler headlines recently he may not have written this.) A little debt promotes capitalization. A lot of debt promotes capitulation. If my neighbor gets punted out of his house because he was a fool, I don't feel personal guilt and want my taxes to increase. Guess that's why I'm not a liberal.



On May 07 02:42 PM kennypowers09 wrote:

> From the article:
>
> "Today, we are the biggest debtor nation in the world"
>
> Not relative to GDP, which is much more important.
>
> "The National Debt is currently $11.2 trillion or 80% of GDP for
> the 1st time since Harry Truman was President."
>
> 80% of the US ANNUAL GDP. We do not have to pay this debt down over
> one year, but assuming we did, we still have the annual cash flow
> to do it. Walmart has over 33 billion in corporate debt and the recent
> operating profit (seekingalpha.com/symbo...) was 6 billion.
> Does this mean walmart is going down the crapper? Hardly.
>
> As whats been said before...a well controlled debt structure can
> be quite beneficial to any country or company. While time will only
> tell the outcome of such, its still important to try to maintain
> as much prospective as possibile and refrain from solely looking
> at nominal values simply bc they are large.

Do You Believe Borrowing Leads to Prosperity? (Part 2)

Jim, you brighten up my week. Thanks again.

Pirate Jo- I love your comment. I also have no desire to enable or sanction the spendthrifts running our country; I pay down debt as aggressively as possible, carry no credit card balances, own my cars free and clear, and live in a modest home. I use an aerial antenna for TV and the best thing that ever happened to me was the analog to digital conversion as I now have no signal and have shut the damn thing down. I get my news from Drudge, SA, and a few other reputable sources. I advocate evading as many taxes as legally possible. I don't count on one red cent from the SSA Ponzi scheme. I long for the day when this government collapses under its own weight and we can get back to the Constitution, hopefully in a peaceful manner. America must be rebooted; it remains to be seen whether this will be a warm or cold one.