Bush borrowing money from foreign governments

[galperi1]

Haven't seen this posted before but found it quite interesting.

If this figure is not already included in the deficit we are in even bigger trouble. With other coutries buying not only our debt, but loaning us money, I really wonder how much power we will have left when they decide to excercise this power over the US

http://www.cnsnews.com/ViewNation.asp?Page=\Nation\archive\200511/NAT20051104b.html

 

[Polish3d]

Bump, this seems quite important. I only wish I was more of an expert on this sort of thing.

 

[BaliBabyDoc]

I've been told that a few trillion in foreign debt is just fine as long as GDP is growing.

1) Can't pay schoolteachers . . . no problem . . . GDP is up.

2) Cuts in school loan programs, Medicaid, and Medicare . . . no problem . . . GDP is up.

3) ANNUAL emergency funding bills for Iraq and War of Stupidity . . . no problem . . . GDP is up.

4) Record trade deficit . . . no problem . . . GDP is up.

5) Corporate % of total tax receitps is down . . . no problem . . . GDP is up.

6) "Modern" record number of uninsured . . . no problem . . . GDP is up.

7) Record bankruptcies . . . no problem . . . GDP is up and change the law so credit card companies can make higher profits.

 

[dahunan]

Fixed link

 

[Engineer]

*sigh*

 

[ShadesOfGrey]

Originally posted by: Engineer
*sigh*

Yep, and yet when some politicians try to reign in spending they are blasted as cruel and uncaring. Take note: The spending cut legislation is on hold. Seems the "moderate"(read spineless) Republicans don't want to upset the Democrats and the so-called Bluedog Democrats fall right in line behind Pelosi when she says "heel" even though they talk a fiscal game.

It's disgraceful that we spend almost 2.5 Trillion a year to run this country. Time to start cutting with a big knife IMO.

 

[dahunan]

Originally posted by: ShadesOfGrey

Originally posted by: Engineer
*sigh*

Yep, and yet when some politicians try to reign in spending they are blasted as cruel and uncaring. Take note: The spending cut legislation is on hold. Seems the "moderate"(read spineless) Republicans don't want to upset the Democrats and the so-called Bluedog Democrats fall right in line behind Pelosi when she says "heel" even though they talk a fiscal game.

It's disgraceful that we spend almost 2.5 Trillion a year to run this country. Time to start cutting with a big knife IMO.

Right.. cut spending the peoples tax money on the people = the best plan you would support..

 

[ShadesOfGrey]

Originally posted by: dahunan

Originally posted by: ShadesOfGrey

Originally posted by: Engineer
*sigh*

Yep, and yet when some politicians try to reign in spending they are blasted as cruel and uncaring. Take note: The spending cut legislation is on hold. Seems the "moderate"(read spineless) Republicans don't want to upset the Democrats and the so-called Bluedog Democrats fall right in line behind Pelosi when she says "heel" even though they talk a fiscal game.

It's disgraceful that we spend almost 2.5 Trillion a year to run this country. Time to start cutting with a big knife IMO.

Right.. cut spending the peoples tax money on the people = the best plan you would support..

Sarcasm or are you serious? Pretty sad if you are trying to be serious. Ofcourse we should stop spending people's tax money - how do you think we go into the borrowing problem to begin with? That's right, spending.

 

[Helenihi]

Originally posted by: galperi1
Haven't seen this posted before but found it quite interesting.

If this figure is not already included in the deficit we are in even bigger trouble. With other coutries buying not only our debt, but loaning us money, I really wonder how much power we will have left when they decide to excercise this power over the US

http://www.cnsnews.com/ViewNation.asp?Page=\Nation\archive\200511/NAT20051104b.html

I think you misunderstand the nature of how the government finances itself. They don't have any power over us and the situation is not analagous to a typical lender lendee situation that a regular person would find themselves in.

 

[BaliBabyDoc]

Originally posted by: ShadesOfGrey

Originally posted by: Engineer
*sigh*

Yep, and yet when some politicians try to reign in spending they are blasted as cruel and uncaring. Take note: The spending cut legislation is on hold. Seems the "moderate"(read spineless) Republicans don't want to upset the Democrats and the so-called Bluedog Democrats fall right in line behind Pelosi when she says "heel" even though they talk a fiscal game.

It's disgraceful that we spend almost 2.5 Trillion a year to run this country. Time to start cutting with a big knife IMO.

Republicans are proposing budget cuts followed by tax cuts that are HIGHER than the budget cuts. A large portion of the cuts come from Medicaid and the school nutrition program, while the tax cuts will primarily benefit more prosperous citizens. Such policies deservedly are labled "dumb" amd "uncaring." In sum, these actions will not reduce the deficit but will definitely impact the most vulnerable members of society.

 

[Polish3d]

IIRC the 50 billion dollar cuts are insignificant anyway and come primarily from education, welfare, etc.. Not exactly awe-inspiring

 

[OneOfTheseDays]

ah yes education, what a worthless thing to spend money on.

how bout we reverse ALL tax cuts that were enacted for the rich and big corporations FIRST? that would seem like a smarter thing to do now wouldn't it? but oh no, right-wingers don't want the precious oil/tobacco companies to lose money, they'd rather see teachers get paid less and our education system fall further into the gutter.

 

[Jhhnn]

From Shades-

"Ofcourse we should stop spending people's tax money - how do you think we go into the borrowing problem to begin with? That's right, spending."

And, of course, faux taxcuts had nothing to do with it...

And Repub rejection of Dems "pay as you go" proposals wrt more taxcuts are a shining example of fiscal responsibility...

 

[arsbanned]

Originally posted by: ShadesOfGrey

Originally posted by: Engineer
*sigh*

Yep, and yet when some politicians try to reign in spending they are blasted as cruel and uncaring. Take note: The spending cut legislation is on hold. Seems the "moderate"(read spineless) Republicans don't want to upset the Democrats and the so-called Bluedog Democrats fall right in line behind Pelosi when she says "heel" even though they talk a fiscal game.

It's disgraceful that we spend almost 2.5 Trillion a year to run this country. Time to start cutting with a big knife IMO.

WTF are you talking about? Spending cuts.... They're wasting billions in Iraq! How about that for an unnecessary expenditure, Mister Economist?! :roll:
Bush spends money like a Palm Beach debutante. Oh sure, he wants to cut programs that assist the poor, but that isn't a solution when he is spending more than ever on his fat cat friends while giving them tax cuts which fatten their wallets even more.

Originally posted by: Frackal
IIRC the 50 billion dollar cuts are insignificant anyway and come primarily from education, welfare, etc.. Not exactly awe-inspiring

Not when we have spent hundreds of billions on a failed war they're not awe-inspiring.

 

[CaptnKirk]

What bargaining chip does Bush and the GOP have left to dangle in front of China and the International Financers ?

Maybe just the Deed to America.

 

[compuwiz1]

He should be borrowing lots of money from the countries we're gonna blow up anyway.

 

[Strk]

Is anyone actually surprised by this?

I wonder when some people will realize that a lot of the complaints about Dubya are not liberal issues?

 

[Bowfinger]

Originally posted by: Strk
Is anyone actually surprised by this?

I wonder when some people will realize that a lot of the complaints about Dubya are not liberal issues?

Exactly. I've been laughing for years at the apologists who automatically label anyone criticizing Bush as a leftist or a commie-lib or some other such nonsense. There are plenty of reasons to object to Bush on both ends of the political spectrum. One only needs to stop swallowing the talking points and start paying attention.

Once partisanship has cooled in a couple fo decades, I think Bush 43 will be almost universally regarded as an utter failure, one of the most damaging Presidents in America's history. Future Americans will look back upon this generation and wonder how could we have possibily been so irresponsible or stupid. In my opinion, the only way to change this legacy is pulling off a miracle in the Middle East. I suspect the Bush machine knows that, which is why they are so rabidly opposed to cutting their losses and planning an expeditious retreat.

 

[arsbanned]

Originally posted by: Bowfinger
Once partisanship has cooled in a couple fo decades, I think Bush 43 will be almost universally regarded as an utter failure, one of the most damaging Presidents in America's history. Future Americans will look back upon this generation and wonder how could we have possibily been so irresponsible or stupid. In my opinion, the only way to change this legacy is pulling off a miracle in the Middle East. I suspect the Bush machine knows that, which is why they are so rabidly opposed to cutting their losses and planning an expeditious retreat.

QFT.

 

[ShadesOfGrey]

Originally posted by: ShadesOfGrey

Originally posted by: Engineer
*sigh*

Yep, and yet when some politicians try to reign in spending they are blasted as cruel and uncaring. Take note: The spending cut legislation is on hold. Seems the "moderate"(read spineless) Republicans don't want to upset the Democrats and the so-called Bluedog Democrats fall right in line behind Pelosi when she says "heel" even though they talk a fiscal game.

It's disgraceful that we spend almost 2.5 Trillion a year to run this country. Time to start cutting with a big knife IMO.

Reading through the responses, it looks like I nailed it.
Ofcourse 50Billion is small, but it's a start. Yes, it touches Medicare(loweres the INCREASE from 7.4% to 7%) - the same Medicare you people are whining about costing the Government so much(although you wanted to spend more than Bush did).
Pretty transparent. Obviously you leftists here are not Bluedog Democrats or you are Pelosi's lapdogs.

 

[Jhhnn]

Perhaps the most overlooked aspect of the whole thing is how it all fits together. Borrowing back excess overseas dollars helps to maintain their false high valuation against other currencies, which promotes offshoring. Offshoring siphons investment money out of the American economy, and supply side economics keeps taxes low for investors, on the basis that their investments in America benefit us all... but they're not investing it in America...

What would be a self-correcting situation is now prolonged and postponed, with American investors getting more after tax income and more for their money offshore than it's really worth... as that stress increases, the required adjustment just gets bigger, and the chances of it being sudden also increase... Which is no big deal if your investments are on the right side of the adjustment... if they're not, so sorry, Charlie...