Geithner Admits: Obligations in President's Budget "Unsustainable"

[Ares]

http://www.youtube.com/watch?v=WdcQGJF_jmY

[Neuro]

That is quite an astonishing exchange. I guess it is estimated on a debt of 20 trillions and around 4% average interest on that debt. Imagine if the debt is 30 trillion and the interest is 10% ten years from now... 3 Trillions just going to interest payments. That is more than is taken in in total in taxes etc by the government today...

[Ares]

That is quite an astonishing exchange. I guess it is estimated on a debt of 20 trillions and around 4% average interest on that debt. Imagine if the debt is 30 trillion and the interest is 10% ten years from now... 3 Trillions just going to interest payments. That is more than is taken in in total in taxes etc by the government today...


Government only takes in 2.5 Trillion today. Has a deficit of 1.5 Trillion. The game is over they just haven't thrown in the towel yet, or recognize that the ball is no longer on the court.

[G2Rad]

what is the alternative?

Government jobs comprise about 60% of all jobs in USA.

Banking, Insurance and Real Estate is anther 20% of jobs.
Those are totaly dependent on government support too.

Health care, fitness, nail & beauty salons etc is another 10%.

If government stops borrowing, it will have to fire those government employee.

say hello to 90% unemployment.

that is a huge army of angry and well-armed people

there is no way of sustaining those people by taxing tiny productive sector of US economy

there is no way to create jobs for them

what can be done about millions of angy, poor and unemloyed?

that is the kind of situation when somebody up in ranks usualy comes to a conclusion that the only choice government has is to start a big, bloody war.
civil war? racial war?

[ShortJohnSilver]

what is the alternative?

Government jobs comprise about 60% of all jobs in USA.

Banking, Insurance and Real Estate is anther 20% of jobs.
Those are totaly dependent on government support too.


1. I would like to see some references to back up your stats. If total taxes are about 20% of GDP, how does that translate to 60-80% of hiring as you claim?

2. I agree there will be a liquidation, but I think they will squeeze Americans into serfdom quite a bit more first. That is the purpose of the capital controls, tightening of travel restrictions, etc. You won't be able to easily convert FRNs into gold or silver, and if you have, you won't be able to get it out of the country.

[Twisted Titan]

Which is why explosive Hyperinflation has to come at some point.

Hyperinflation is last Bullet in the Gun of the Ruling regime To stave off Revolution

It will fail........like it always do

But it will lead to entrance of a Dictator to restore "order".

T