There Is No Way Out Of This Box....

[Subdivisions]

]

Go ahead folks - tell me how we can simply ignore this.

How we can pretend that the outstanding debt does not have to come back down to reasonable levels.

That these levels are "reasonable" - and that these rates of growth are "reasonable."

This is the "magic of compounding" writ large - and in a fashion that is going to inflict severe pain on our population - and the longer we wait to deal with it, the worse it will be.

...snip...

http://market-ticker.denninger.net/archives/1752-There-Is-No-Way-Out-Of-This-Box.....html

[leftstreet]

1. Let's just print some more money!

K&R

That's a startling graphic

[girl gone mad]

8. It's our 'hair of the dog' recovery.

Don't stop drinking and you'll never be hung over.

[WT Fuheck]

2. but capitalism is great!

...isn't it?


















-wink-

[Subdivisions]

3. Just imagine what 2020 is going to look like at this rate! n/t

[WT Fuheck]

10. I'm not sure how much longer we can keep this planetary rape going.

[DJ13]

4. Theres another metric used in comparing debt that isnt quite as bad

[dysfunctional press]

5. there is also over $50trillion in private wealth in the u.s....

the money can only come from where the money is- so those that have it will eventually have to pay the bill.
whether it be by reasonable wealth tax, or not-so reasonable revolution.

and whichever way that is- i hope i live to see that day of reckoning come.

[DJ13]

6. I do too

They deserve everything they have coming to them!

[grantcart]

7. Two points

1) Expressing debt as an absolute value versus a percent is without any merit whatsoever.

A comparison of debt to GDP shows a less hysterical result.





2) The numbers for debt outside the US are simply not credible


The answer to your question however is relatively simple - either we grow our way out of debt or it will be an inflationary answer.

If we reinvent our economy on a new energy foundation - like the President proposes and can sustain 2.5% GDP growth over 8-9 years and use 30% of the growth to retire debt we would eliminate a huge percent of the debt and with careful stewardship reduce the huge interest payments that the government is making freeing even more revenue for health care and service programs.

[Enthusiast]

9. How about we pull

out of Iraq and Afghanistan and save some fucking lives and money in the process? We can't possibly even improve the situation in Afghanistan anyway.

[libertypirate]

11. I say we start paying for people with debt, and if they want to fight

a war then they shouldn't have a problem fund raising taxes of those with excess for it!