US Government debt 2008 is USD10 trillion
US Government commitment for medicare and welfare up to 2035 is USD60 trillion
US GDP for 2008 is USD13.5 trillion
US Consumption 2008 is USD9.5 trillion
US Derivative market 2008 is about USD300 trillion
- Government debt is real, say have to pay back in 10 to 30 years = 250 bil to 500 bil and to service the interest of 300 bil, US will have problem serving this huge loan and repayment
- Government has no money to pay for medicare and social welfare
- The finance sector contribute about 50% of the economy, which is basically a big casino in disguise as an investment bank
- The GDP is unsustainable because of debt driven and over consumption for the last 25 years, hence it is going to collapse
- The derivatives market, also a form of Casino, no real trade transactions, is about 25 times of an unsusstainable GDP (inflated GDP, phony GDP, unrealistic GDP, casino GDP), will default and bring the entire economy down for a long long time
MyView
- One has to be realistic when evaluating the US economy. The debt (due to low interest rate) has been there for more than 10 years due to government intervention, created a phony economy (with the mortgage bubble).
- Continuous of Government intervention, does not allow LTCM to collapse, which encourages incompetent management to florish
- The addiction to debt, over consumption and lack of savings will continue with help of Government from the Stimulus Plan
- The printing of money from Stimulus Plan will only prolong and inflate the problem and cause another bigger problem in the long run, hyperinflation
What is your view?
Do we realistically think that HOPE, BELIEVE or CHANGE can solve the problem?
Do we think that the same people that cause this problems (bankers) and not even sees what is coming?
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