What are the odds....

[soccerballtux]

Considering how dependent China is on our consumption, how possible do you think it is that we have an unwritten blank check from them for however many Treasuries we need to sell? I can't explain our politicians and the Fed's rampant spending any other way. They can't _really_ think they're going to get away with all this.

 

[Zebo]

It's my understanding, that we already get China's extra cash, all of it, so I don't know how government can feed this beast w/o doing one of two things.

Raising treasury yields which will invite private monies, mainly from stock markets into financing this deficit spending or print the money.

Both suck. One causes less tax receipts used for todays services, crashes market and grows debt more while the other causes hyperinflation.

 

[PokerGuy]

I really believe the squandering government thinks they will waste all this money, the economy will get "stimulated" (yeah, right) and go gangbusters. Then, because the economy is humming along, it will produce lots of tax revenue, thereby allowing the government to pay off some of the debt.

We all know this is BS, but hey, spend some more billions......

 

[bobsmith1492]

Originally posted by: PokerGuy
I really believe the squandering government thinks they will waste all this money, the economy will get "stimulated" (yeah, right) and go gangbusters. Then, because the economy is humming along, it will produce lots of tax revenue, thereby allowing the government to pay off some of the debt.

We all know this is BS, but hey, spend some more billions......

Agreed, except that, when the economy is humming along, the government will tax it more and spend even more and get into even more debt...

 

[BarneyFife]

The worst is when states cut taxes and issue refunds to people when the economy is humming instead of setting that aside for a rainy day.

 

[JACKDRUID]

Originally posted by: PokerGuy
I really believe the squandering government thinks they will waste all this money, the economy will get "stimulated" (yeah, right) and go gangbusters. Then, because the economy is humming along, it will produce lots of tax revenue, thereby allowing the government to pay off some of the debt.

We all know this is BS, but hey, spend some more billions......

this is no BS, this is how econmics works and there are theories behind it.

unless you have an alternate solution to our economic crisis, this is the only option availble to us.

and NO, "doing nothing" is not an option anymore (been doing that for last 8 yrs w. Bush), we need to do something.