Re: Sarah Palin Loading Up on Funding for 2016 Pres Race Against Hillary
Posted by:
Meade's Hillbilly Cousin
()
Date: November 13, 2012 10:55AM
mo free stuff Wrote:
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> Wasting their time by 2016 the America we know
> will be history, Just Greece west by then.
America ABSOLUTELY CATEGORICALLY 100% CAN NOT BECOME LIKE GREECE!!!!!!!!!
Why do you guys repeat this Fox News lie? Because you are stupid enough to watch Fox News I guess.
Japans GDP to debt is twice ours
The US Government can not default on its debts. We have the ability to print money. Therefore we can not default. And as long as people are ling up to buy our t-bills at near o% interest, we are fine. They still are and they still will be,
"But what about our credit being downgraded and much higher interest" you ask...
Listen Sen Bachman, you told us we would be plunged in an economic catastrophe when our credit rating was downgraded by one agency. I remember you giving a speech saying that credit card interest would go up, no one would give us a student loan, etc. NONE OF THAT HAPPENED.
Stop fucking saying we will end up like Greece.
Because what you have in Europe is, you know, this collection of countries that decided at various points in time – not everybody adopted the euro at the same time – but they all decided to give up their individual sovereign currencies. Eleven of them did this in 1999 and then gradually six more countries joined, so today there are seventeen. But all of these countries used to have a currency that came from them. The lira, the franc etc
And today (Greece) they have this currency that they can’t issue. And in order to spend they have to go out and get the currency from somebody else. And so you look at Italy, that today has a debt-to-GDP ratio that is almost exactly where it was 15 years ago, only 15 years ago you didn’t have a debt crisis and today you do. What’s the difference? How come they could always pay before? Same debt load. And the difference is because they had promised to pay lira, and the lira came from the Italian government.
Same for Greece. High debt is not something entirely new to Greece, but it was always sustainable before because the debt was denominated in the drachma, and they could always come up with the currency when they needed to make a payment.
Where does the Euro come from? That would be the European Central Bank. They have the monopoly over the issue of the currency, and that’s why, you know, time and time again when we’ve seen governments get into trouble where they’re reaching the point where their debt levels are unsustainable and there’s the possibility that they actually might miss payments, the only place the currency can really come from, the only entity that can deal with the solvency crisis, is the ECB. So the ECB steps in, provides the funds, and, you know, this thing can go on. As long as the ECB is willing to do that, the euro can survive, but there’s just really no other, no other alternative under a system like that, because these countries are borrowing in a currency that doesn’t come from them.
Financial markets realize that they’re lending to currency users and not currency issuers, which is exactly why the financial markets have so much power. It’s why they’re able to bully these countries in a way that they can’t bully the U.S., they can’t bully Japan, they can’t bully the U.K.
Look at Japan’s debt-to-GDP. It’s twice ours. It’s 200% debt relative to the size of their economy. Ours is about 100% debt to GDP. Where are Japan’s interest rates? Right where ours are. Zero short-term and about 1% long-term. Why? Why is Japan’s debt twice as big as ours and their interest rates are at zero, U.K. same thing, U.S. same thing, and in Europe interest rates are all over the place – 6%, 6½ , 5, 7? It’s because financial markets recognize that they’re lending to currency users, that there’s a real possibility of default, and in order to compensate them for the risk they’re taking in lending to these currency users, they want a premium. And so they’re able to extract that higher interest rate by virtue of the fact that, you know, you might default, so you've got to compensate.