Trillion Dollar Deficit Really Means?

[MA-Caver]

http://news.yahoo.com/s/yblog_upsho...a-trillion-dollar-federal-deficit-really-mean

On Friday, the Obama administration reported that the [COLOR=#366388 ! important][COLOR=#366388 ! important]federal [COLOR=#366388 ! important]budget [/COLOR][COLOR=#366388 ! important]deficit[/COLOR][/COLOR][/COLOR] for Fiscal Year 2010, which ended on September 30, came in at about $1.294 trillion.
In light of that information, a few FAQs:
How does this compare with past deficits?
It's huge. That's down from the record $1.4 trillion deficit in Fiscal 2009. But it still represents the second-largest deficit in history. In 2007, the deficit was only about $160 billion.

<snip>
What does it mean for you?
So far, not much. In theory, the existence of large deficits puts pressure on interest rates to rise and has the potential to ignite inflation. But interest rates have remained extraordinarily low, in part because the Federal Reserve has kept short-term rates near zero and investors fretting about uncertainty have parked cash in Treasury bonds. If signs of sustainable economic growth materialize, that could change. As Mark Zandi, chief economist at Moody's Analytics, told the Associated Press: "If we get to 2013 and policymakers don't look like they have a credible plan to deal with the deficit, then interest rates are likely to rise significantly and that will jeopardize the recovery we have under way at that time."

A trillion dollars. Can't even IMAGINE that amount.
As far as getting OUT of it... it'd be nigh impossible since the Federal Reserve Bank is charging us interest on the money that we borrowed and we're just paying off the interests which forces us to borrow again at interest to pay off that.
One option. Execute Executive Order 1011 and abolish the Federal Reserve and let the U.S. start making their own money based on the assets this country has and pay off the debt and be done with it.

 

[Bruno@MT]

One option. Execute Executive Order 1011 and abolish the Federal Reserve and let the U.S. start making their own money based on the assets this country has and pay off the debt and be done with it.

Right.

Will that be before or after the revolution that will happen when the people realize that the federal government is taking over the industry? Can't imagine that going over well since half the country already balked over a careful step towards socialized medicine.

But perhaps I am wrong and you did think this through?

 

[Cryozombie]

Can't imagine that going over well since half the country already balked over a careful step towards socialized medicine.

When was there a careful step twords socialized medicine in the US? I think I missed it.

 

[Bruno@MT]

When was there a careful step twords socialized medicine in the US? I think I missed it.

No. Precisely because of the fact that a lot of people balked. Remember the Obama is a socialist' rhetoric? Palin yammering on about death panels? People complaining about not wanting to pay for others?

And that was only about the idea of providing hc to people who couldn't afford it. Now imagine the federal goverment requisitioning industry assets to the value of 1 trillion dollars.

 

[Big Don]

Now imagine the federal goverment requisitioning industry assets to the value of 1 trillion dollars.

What was General Motors worth, you know, before the government took over?

 

[Bruno@MT]

What was General Motors worth, you know, before the government took over?

They didn't seize anything, did they?
As for worth... not even half as much as they pumped into it.

 

[Sukerkin]

Right.

Will that be before or after the revolution that will happen when the people realize that the federal government is taking over the industry

Where did you get that from, Bruno?

Having the control of the money supply in the hands of the body whose job it is to administer the economy as best it can is the only sensible option.

Having it in private hands, which it is at present (don't be fooled by the 'Federal' tag), is a road that has only one end ... and we're currently running out of road.

What happened after the Depression of the 1930's is happening again, right down to some disturbing speaches being made by the political leadership of Germany. Such a slide is attributible to the ever-worsening distribution of wealth inequality and the swings between boom and bust that the financial system currently causes.

In the simplest and baldest of terms, if the government doesn't control the money supply then the banks control the governments freedom of action when it comes to economic policy (which, in the end, determines everything else).

 

[Big Don]

Can't imagine that going over well since half the country already balked over a careful step towards socialized medicine.

But perhaps I am wrong and you did think this through?

When was there a careful step twords socialized medicine in the US? I think I missed it.

No. Precisely because of the fact that a lot of people balked.

Cryo really should have emphasized the word CAREFUL, because there was no careful step, a mad dash, yes, but, no careful step.

 

[5-0 Kenpo]

No. Precisely because of the fact that a lot of people balked.

And considering the statment of Nancy Pelosi, "But we have to pass the bill so that you can find out what's in it...", I'm glad that people did balk.

Remember the Obama is a socialist' rhetoric?

What rhetoric? Obama is a socialist. Read his books. They're full of socialist governmental ideas. This health insurance "reform" bill was the most direct and loudest example of it, to which alot of people revolted.

Palin yammering on about death panels?

What else would you call a governmental panel which gets to decide whether an individual would receive medical services based on the governments ability to pay, and whether it would be a useful allocation of medical benefits?

People complaining about not wanting to pay for others?

God forbid that the money you make should be a direct benefit to you and not others.

And that was only about the idea of providing hc to people who couldn't afford it.

Not true. It was about the government supplying universal health care, which is Obama's ultimate goal. From "The Audacity of Hope":

"I might agree that universal health care should be one of the nation's top priorities..."

"..and called me a "hard-core, academic Marxist" for my support of universal health care..."

"...but a plan for universal health-care coverage would do more to eliminate health disparities between whites and minorities than any race-specific programs we might design."

So no, it wasn't about providing health care to people who couldn't afford it.