Post by Chris_Wendt on Jul 14, 2009 9:58:31 GMT -5
A deficit is a shortage in what is required. In this case, it is the amount of money the federal government has in the Treasury which is $1 TRILLION less than the amount of money the federal government intends to spend.
One TRILLION Dollars is a million-million dollars, an amount of money or any other thing in your experience that is incomprehensible to any of us as a number.
Deficit spending is unlawful for most units of government other than for the federal government. The school district, for instance, may not spend so much as $1 over its budget.
This $1 TRILLION federal deficit is also unprecedented, although not totally unexpected. However, being without precedent, there is also no reliable model that can accurately predict how a $1 TRILLION deficit will behave in the future, how other nations will react to it, or, what it will do fundamental, structural parts of the economy, such as the value of the US Dollar as a global currency, and especially its impact upon future interest rates that effect all of us in more ways than most of us understand.
There is one certainty about any deficit, but especially about a $1 TRILLION deficit: the amount of the deficit (in this case, ONE TRILLION--a million-million-- DOLLARS) must be borrowed by the federal government, and, entities other than the federal government must step up as willing lenders to provide all of that money.
But, no one is going to "GIVE AWAY" any of this money to the US Government; they will want bonds and notes, and "concessions" about trade, or outsourcing your children's jobs to their country, or importing cheap 'foreign' labor from there to here, or, about ownership of assets in and of the United States of America--in trade for this money.
Some off-shore lenders will demand we look away from their shores and ignore uncivilized behaviors or weapons developments which are clearly dangerous to us and to our way of life, here. And it should come as no surprise at some point in the future if some foreign lender, under the guise of supporting our deficit, demands the US Government trade-away some of YOUR rights or liberties in exchange for their money!
Change?
Change!
Be careful what you ask for...
...you might get it!
Chris Wendt
One TRILLION Dollars is a million-million dollars, an amount of money or any other thing in your experience that is incomprehensible to any of us as a number.
Deficit spending is unlawful for most units of government other than for the federal government. The school district, for instance, may not spend so much as $1 over its budget.
This $1 TRILLION federal deficit is also unprecedented, although not totally unexpected. However, being without precedent, there is also no reliable model that can accurately predict how a $1 TRILLION deficit will behave in the future, how other nations will react to it, or, what it will do fundamental, structural parts of the economy, such as the value of the US Dollar as a global currency, and especially its impact upon future interest rates that effect all of us in more ways than most of us understand.
There is one certainty about any deficit, but especially about a $1 TRILLION deficit: the amount of the deficit (in this case, ONE TRILLION--a million-million-- DOLLARS) must be borrowed by the federal government, and, entities other than the federal government must step up as willing lenders to provide all of that money.
But, no one is going to "GIVE AWAY" any of this money to the US Government; they will want bonds and notes, and "concessions" about trade, or outsourcing your children's jobs to their country, or importing cheap 'foreign' labor from there to here, or, about ownership of assets in and of the United States of America--in trade for this money.
Some off-shore lenders will demand we look away from their shores and ignore uncivilized behaviors or weapons developments which are clearly dangerous to us and to our way of life, here. And it should come as no surprise at some point in the future if some foreign lender, under the guise of supporting our deficit, demands the US Government trade-away some of YOUR rights or liberties in exchange for their money!
Change?
Change!
Be careful what you ask for...
...you might get it!
Chris Wendt