On Jun 7, 8:11 pm, Michael Coburn
verizon.net> wrote:> On Mon, 07 Jun 2010 12:05:54 -0700, The_Carpathia wrote:
>> On Jun 7, 2:06 pm, Michael Coburn
verizon.net> wrote:>>> On Mon, 07 Jun 2010 03:18:51 -0700, The_Carpathia wrote:
>>>> This is soooo sad. This is why we are going to keep going down. It's
>>>> the mentality of the age. From the What's News section of the
>>>> WSJ.."EU finance ministers are on track to sign off on final details
>>>> of $527 billion in loans intended as a backstop if sovereign debt
>>>> woes deepen." (WJS, today)
>
>>>> Get that? If debt becomes too large...THEY'LL TAKE OUT MORE DEBT TO
>>>> SOLVE IT. That's like saying the alcoholic bought a case of beer in
>>>> case they have a hangover. We're just digging our grave, one loan at
>>>> a time.
>
>>> Long past time for this lesson in economic reality:
>
>>> If I have borrowed money at 4%% interest I will owe that money and the
>>> interest. Each year I will pay some of the principle and the interest
>>> on the debt. Yet if I am the government that backs the currency in
>>> which the debt is denominated then I control the actual VALUE of that
>>> debt as it is held by the public and the actual cost of that debt as
>>> realized by ME. So my objective (if I were a profit maximizing entity
>>> which government is not) would be to diminish my cost and maximize my
>>> profits. Still the government actually does seek to minimize _REAL_
>>> costs.
>
>>> In this _REAL_WORLD_ inflation (which is anywhere and everywhere a
>>> devaluation of the currency) is the friend of the party who owes and
>>> the enemy of the party who is owed.
>
>> Was it the same under Bush?
>
>> But, tell you what....go out and get a couple credit cards and pay all
>> your bills with them. When they come due, get more to pay the interest
>> and your bills...then, get more and more till you learn this lesson.
>
> Unlike the example of the credit cards in which interest
> fluctuates rapidly and the borrower must pay in an EARNED script not his
> own, government has total and complete control over its debt.
This one sentence reveals your key flaw of your entire argument. You
claim the government can solve it's debt crisis by printing money.
Yet, if that were the case, there never would have been a problem.
We've been printing money for a hundred years, and...yet....the debt
is HUGE. The White House acknowledges that the deficit is too large.
The economists know the debt is too large. EU is collapsing right now
DESPITE printing money.
Just take a breath. I'm going to give you the respect to take a
second...think about what I'm saying and realize I'm right, here. If
the government had control over their debt, there never would have
BEEN a debt, and no one could take away their credit rating (nor would
a credit rating matter). The ONLY system that makes your theory work
is a worldwide global economy under a centralized worldwide government
that is able to control all of the variables. Is that your
proposal..yes or no?
Kenneth W Clifton
http://stores.lulu.com/kenclifton
(free Christian books and devotionals)
