Putting It All Into Perspective.............

John A. Quayle blueoval57 at VERIZON.NET
Sun Feb 8 17:22:46 MST 2009


>John A. Quayle wrote:
>>
>>If you had gone into business on the day Jesus was born, and your 
>>business lost a million dollars a day, day in and day out, 365 days a 
>>year, it would take you until */October, 2737/* to lose a trillion dollars.
>>The U.S. Congress has done seven times this damage to their constituents 
>>in a little over eighteen years!

At 05:38 PM 2/8/2009, Ernie Lane wrote:

>I know it's popular to cite Keynes for the need for the government to 
>spend money and all that.

         Keynes was a charlatan, IMHO.......no country in history has ever 
spent itself into prosperity............

>I read an article the other day that said that deficit spending is OK, if 
>not called for, as long as the deficit is below 4% of GDP.  Now, I don't 
>know what the "limit" is, but Obama is moving us in the direction of 
>annual deficits of more than 10% of GDP.  I think that deficits are fine, 
>as long as they are of reasonable size.
>
>And one thing you don't hear much about is that these huge deficits are 
>going to put us in the area of a total government debt of more than 100% 
>of GDP, and I don't think that's survivable.

         Japan did that throughout the 1990s, spending 100-trillion yen - 
greatly exceeding its GDP.

>At least when the annual deficits are small, the economy can grow faster 
>than those deficits, so the total debt never overtakes GDP. A declining 
>economy, as we are in now, can absorb reasonable deficits for a year or 
>two, and eventually make that surplus (deficit over economic growth) 
>up.  But Obama's deficits, so much so fast, will hobble the economy forever.

         Glenn Beck spoke to this issue this past week. He pointed out that 
Congress has raise the debt limit to $10-trillion. Since October, we've 
spent an additional $20-Trillion (a figure in so short a time that just 
blows my mind).......now, add to that the $50-trillion needed to make 
Social Security and Medicare/Medicaid solvent...................I've got to 
think that we're in the same boat Japan found itself in a decade ago. 
Collapse is imminent.

John Q. 
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