Did You Know That You Owe?

mame said:

No, they wont. The poor are essentially immune to this issue over the long term because most of their income is tied to - and adjusted for - inflation (entitlement income, minimum wage increases). In the short term however, sure, people will have $20 less a week to spend on groceries.. But it's worth it if it forces the rich to spend that money they're sitting on because the end result will be economic growth - which means jobs (and in a better time, wage increases... unfortunately inequality is at levels only seen prior to the Great Depression).

The positives outweigh the negatives.

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Rich people don't sit on money, they are totally cash poor, i can probably come up with more cash in a moments notice than a rich person could. Rich people have most of their money invested in things that provide dividends or interest income. Its not like Scrooge McDuck sitting in a vault swimming in gold coins and cash. Inflation hasn't even begun, it lags years behind policy, the small inflation you see now is from the QE1, wait until QE2 inflation kicks in.

If inflation were such a small issue, then why are there all these poor countries who are revolting due to inflation?

NoDrama said:

Rich people don't sit on money, they are totally cash poor, i can probably come up with more cash in a moments notice than a rich person could. Rich people have most of their money invested in things that provide dividends or interest income. Its not like Scrooge McDuck sitting in a vault swimming in gold coins and cash. Inflation hasn't even begun, it lags years behind policy, the small inflation you see now is from the QE1, wait until QE2 inflation kicks in.

If inflation were such a small issue, then why are there all these poor countries who are revolting due to inflation?

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See, this is my issue with the Freidmans of the world. You assume that the market is always working in perfect harmony (this would only be true if employment was low, investment high, and inflation near zero) and by extension you believe that the rich invest ALL of their money when, in fact, the rich save at a higher rate than anyone else in this country despite the large portion of their money that goes towards investments. Right now the rich are said to be holding at least 2 trillion in CASH - as in, they are NOT currently investing. Getting them to invest is the key to the recovery... Inflation is the key to getting them to invest.

Drama you are on the ball so many people are so mis informed its not even funny the government likes this tho cause if more people really knew i think shit would hit the fan

its funny how mame thinks were all waiting on the rich people to start spending money and usa will be better off mame keep thinking like that lol it will not happen

mame this is how it works i own a corporation i take money out lets say 50,000 i can tommorow next day what ever mark it in my books as a personel loan make my own interest rate or what ever
i just pulled 50,000 tax free dollars out of my business i got 1 year to pay it back or it becomes a taxable benifit which i got to pay taxes on so you think i am goin to start spending money lol your nuts i will spend only my wages i pay my self on or i will invest my corporate funds into short term bonds 90 day etc ( residual income )

mame said:

See, this is my issue with the Freidmans of the world. You assume that the market is always working in perfect harmony (this would only be true if employment was low, investment high, and inflation near zero) and by extension you believe that the rich invest ALL of their money when, in fact, the rich save at a higher rate than anyone else in this country despite the large portion of their money that goes towards investments. Right now the rich are said to be holding at least 2 trillion in CASH - as in, they are NOT currently investing. Getting them to invest is the key to the recovery... Inflation is the key to getting them to invest.

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I bet the poor and middle class hold way more than 2 trillion. Who is a Friedman? Personally I think the guy was wrong about a lot of things, but I don't suppose you ever thought of anything other than Keynesian theory as being correct. Keynes is great for a while,but eventually all that debt eats you alive. Keynes is what is taught in school, and im sure you believe everything you were taught in school as being correct.

NoDrama said:

I bet the poor and middle class hold way more than 2 trillion. Who is a Friedman? Personally I think the guy was wrong about a lot of things, but I don't suppose you ever thought of anything other than Keynesian theory as being correct. Keynes is great for a while,but eventually all that debt eats you alive. Keynes is what is taught in school, and im sure you believe everything you were taught in school as being correct.

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No, Keynes is not the only theory I value. If I were to identify with a specific school of thought I'd call myself a New Keynesian... which follows Keynesian principles for a lot of things as well as a few areas where new classicals have shown to be right as well as monetarism. Freidman was right in a few respects... specifically consumer behavior, monetary forces and inflation ; He won a Nobel prize for his work on these subjects after all...

mame said:

No, Keynes is not the only theory I value. If I were to identify with a specific school of thought I'd call myself a New Keynesian... which follows Keynesian principles for a lot of things as well as a few areas where new classicals have shown to be right as well as monetarism. Freidman was right in a few respects... specifically consumer behavior, monetary forces and inflation; He won a Nobel prize for his work on these subjects after all...

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After they gave Obama a Nobel Prize for peace, I lost all respect for that award right then and there. At least I can respect your position as you don't claim that economics is a hard science where everything can be explained with graphs and charts.

NoDrama said:

After they gave Obama a Nobel Prize for peace, I lost all respect for that award right then and there. At least I can respect your position as you don't claim that economics is a hard science where everything can be explained with graphs and charts.

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If only economics were truly a science...

it'd be easier... haha

This would be true if they used the headline inflation number on their cost of living adjustments, even assujming the headline number was correct which it isnt.

mame said:

No, they wont. The poor are essentially immune to this issue over the long term because most of their income is tied to - and adjusted for - inflation (entitlement income, minimum wage increases). In the short term however, sure, people will have $20 less a week to spend on groceries.. But it's worth it if it forces the rich to spend that money they're sitting on because the end result will be economic growth - which means jobs (and in a better time, wage increases... unfortunately inequality is at levels only seen prior to the Great Depression).

The positives outweigh the negatives.

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So the good jobs get exported this is a good thing?

mame said:

Our economy relies on the service/retail industries to create jobs. Manual labor(manufactoring, etc) has been a diminishing force in our economy for decades.

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I can easily see this getting out of control and a default happening around 2014.

DrFever said:

Its highest debts are to China,Japan & Great Britain.

The debt to Great Britain alone rose from $180.3 Billion to $541.3 Billion in just 1 year!

The Outstanding Public Debt of the US as of 25 Feb 2011 at 12:15:28 PM GMT is:

$14,132,020,688,467.99. Thats 14.1 trillion and there is only 8.3 trillion in the world today. so if every one in the world gave every last penny we would still owe 5.8 trillion.


The estimated population of the United States is 310,096,388
so each citizen's share of this debt is $45,572.99.
The National Debt has continued to increase an average of
$4.11 billion per day since September 28, 2007



Read more: http://wiki.answers.com/Q/How_much_money_does_america_owe_other_countries#ixzz1Ji4DY1rD​

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