[luvtolean]

^

No.

To even ask the question shows complete ignorance.

[nhfirefighter13]

Since nobody else has done it yet (and my knuckles are itching to be dragged along the floor...)

If we want money, we'll take it. If other countries want to be paid back...come and get it. We'll tell you how much we're worth.


US Economics with NH

[abtech]

Originally Posted by nhfirefighter13

Since nobody else has done it yet (and my knuckles are itching to be dragged along the floor...)

If we want money, we'll take it. If other countries want to be paid back...come and get it. We'll tell you how much we're worth.


US Economics with NH

[oldfogey]

Originally Posted by nhfirefighter13

Since nobody else has done it yet (and my knuckles are itching to be dragged along the floor...)

If we want money, we'll take it. If other countries want to be paid back...come and get it. We'll tell you how much we're worth.


US Economics with NH

The price of borrowing includes an estimate of likelihood of being paid back. The less trust, the higher the price. Remember your assets overseas are pretty substantial.

Most of the government bonds are held by "friendly" overseas central banks: Europe, Japan, Korea, Singapore, Taiwan and increasingly by China.

[nhfirefighter13]

Originally Posted by oldfogey

Most of the government bonds are held by "friendly" overseas central banks: Europe, Japan, Korea, Singapore, Taiwan and increasingly by China.

They're only friendly because we have more guns than they do.

[oldfogey]

Re China, you probably have fewer but bigger....

[nhfirefighter13]

LOL. good point.

[sheepofblue]

Originally Posted by oldfogey

Re China, you probably have fewer but bigger....

Not if you factor in privately held weapons (Ignoring the blue zones)

[ND4SPD]

Originally Posted by sheepofblue

Not if you factor in privately held weapons (Ignoring the blue zones)

Heh, just factor figment and his buddies, that's enough for starters.

[BDA116]

Originally Posted by Cowboy1600

If you continue to increase that debt without regard, and then leave it to you kids, and their kids, and their kids then yes. You are very irresponsible. More than liekly tho you have budgeted to have it paid off before you die. Am I right?

KABOOM!!!!

No, you are wrong. On more than one level. I am teaching my kids economically sound principles. Why pay off the mortgaged debt when the assets are worth more than double the debits, and the interest rate on the mortgaged debt is lower than the interest rates gained on investments.
It would be economically irresponsible to pay off debits owed at ~5% when those monies are invested and currently making much more than that. You see, this is why some people stay in their current situations. They only see one number rather than the entire economic picture and are completely unwilling to take chances and educate themselves to make their picture brighter.
Some people can't grasp the fact that keeping long-term debt can make you a lot of long-term money when done properly.
You see, the single debt factor is completely meaningless without the rest of the picture.

[Johnny Diablo]

Originally Posted by Cowboy1600

Thats not a concern. The levels are still so low, comparitively, that an increase is nothing to be concerned about. Also Australia is capable of being self-sufficient if need be. The USA isnt capable of producing enough of the basics should it suddenly be cut off from the rest of the world.

.

This coming from someone much like gilligan ... on a desert island?

[Cowboy1600]

Originally Posted by oldfogey

If your business has just increased in value from 100 to 127 but you borrowed 5 from a foreigner to do it, are you worse or better off?

Ok, but is that whats happening? Where is all the value being added from the money being borrowed?

[Cowboy1600]

Originally Posted by oldfogey

Re China, you probably have fewer but bigger....

Funny thing is the US has bigger guns but China could sink the US economy overnight. There is talk that China is playing with the idea of swapping its $5 trillion it has in US currency reserves to the Euro instead. This would have catastrophic consequences for the US economy.

[EDDIE110171]

Originally Posted by Cowboy1600

Tell me, does the US not have record foreign debt? What would happen if you borrow $1000000 from a bank and then didnt pay a cent back for 5 years. You then went back and asked for more money? Would the bank lend you more money? Hell no. How much longer do you think other countries and organizations are going to keep send cash and commodities to the states?

[Cowboy1600]

Originally Posted by BDA116

No, you are wrong. On more than one level. I am teaching my kids economically sound principles. Why pay off the mortgaged debt when the assets are worth more than double the debits, and the interest rate on the mortgaged debt is lower than the interest rates gained on investments.
It would be economically irresponsible to pay off debits owed at ~5% when those monies are invested and currently making much more than that. You see, this is why some people stay in their current situations. They only see one number rather than the entire economic picture and are completely unwilling to take chances and educate themselves to make their picture brighter.
Some people can't grasp the fact that keeping long-term debt can make you a lot of long-term money when done properly.
You see, the single debt factor is completely meaningless without the rest of the picture.

I can see what your doing and your right, that is very sound financial planning. But I ask is that what is happening in the States? Is the money that the government borrowing adding to the value of the nation? If so does the value adding outstrip the increase in debt?

I guess it depends where you have your debt tied up. Our interest rate has been very low over the last few years which has seen a boom in the housing market and a huge increase in the average size of a mortgage. There are many people with hundreds of thousands of dollars tied up in housing. If interest rates climb at any stage, which many economists over here are predicting the housing market may decline rapidly. This will see housing prices drop and mortgage repayments go up. People will offload a couple of houses they can no longer afford to keep, but will not get enough back to pay off the principal of the loan. This will leave them with very lagre debts, nothing to show for them, and no way to pay them off.

Now this is a possible scenario.

[Cowboy1600]

To all the people crapping on about me fishing, and guns and **** like that, a short message. **** off and get a life. Im not trying to pick a fight.

Im not up to speed when it comes to economics, especially US economics and am trying to learn more. US politics is of great interest to me.

[Cowboy1600]

Originally Posted by Tombstone

This coming from someone much like gilligan ... on a desert island?

Gilligan huh? Tell me did the people on the Minnow starve to death when they were marooned? Did they dehydrate?

There isnt much we need to import. We have our own gas and oil, we grow most our own food. Metals and the like come from Australian soils. There is not much(anything that I can think of off the top of my head) that we have to import from overseas that we couldnt make, grow or mine right here in Australia.

Why the need to get personal?

[Bacchus]

Originally Posted by Cowboy1600

To all the people crapping on about me fishing, and guns and **** like that, a short message. **** off and get a life. Im not trying to pick a fight.

Don't let'em get to ya Cowboy. You've maintained composure so far.

[nhfirefighter13]

shuddddup, mushroom-boy. You're ruining our fun.

[Bacchus]

Sorry...

[nhfirefighter13]

[BDA116]

Originally Posted by Cowboy1600

Gilligan huh? Tell me did the people on the Minnow starve to death when they were marooned? Did they dehydrate?

There isnt much we need to import. We have our own gas and oil, we grow most our own food. Metals and the like come from Australian soils. There is not much(anything that I can think of off the top of my head) that we have to import from overseas that we couldnt make, grow or mine right here in Australia.

Why the need to get personal?

Uh, you do realize that the U.S. doesn't need to import a damned thing, right?
We could be completely self-sufficient and not purchase anything overseas tomorrow, thus - in a nutshell - shutting down the rest of the world's economies.
I know you say you're trying to learn, but you keep tossing out such extremely unqualified statements that it is easy to laugh at you and say you're fishing. The U.S. economy is actually at a very strong point in history, the major medias just like running doom and gloom stories rather than talk all the good that is happening.
Yeah, the U.S. has debt, but the U.S. assets (foreign held or other) are much more valuable. Without going in depth into economic principles the assets spoken of by 'fogey earlier are just a tip of the iceberg. In overall net worth, the U.S. is on stronger ground than the next (off the top of my head) 5 or 6 other countries combined. There is a reason California alone has a larger economy than all but a couple other countries. There is a reason every country on the planet begs to be trading partners with the U.S.
Yes, we could tell the world to **** off tomorrow, live off our own vast resources, and put all the proverbial bank notes from other countries in the shredder. What would happen? We'd piss off a bunch of countries, but we would thrive while others failed and fell into war amongst themselves.
No, the U.S. economy is not on frail ground on paper or in the real world. It is way too complicated to get into on a motorcycle forum, but in short we own more money, more capability, more resources and more economic power than the entirety of the EU and many other nations combined. However, we all interact economically and politically and althought the EU is trying to do anything possible to make it happen, the U.S. economy is not going to play second fiddle to anyone. We have the power to stay on top and destroy other economies if we ever so desire, and while it pisses many people off to no end, it is the way it is.
There's no point in trying to go into this in depth, it would take too long and wouldn't change certain points of view anyway.