04-22-2009, 05:51 AM | #1 (permalink) | |
Living in a Warmer Insanity
Super Moderator
Location: Yucatan, Mexico
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Whom do we owe?
Found this interesting article this morning...
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I knew we owed China and Japan a bunch of money but I had no idea we owed as many countries as we do. Wonder if the US is ever going to start living within it's means? Wonder if owing all these dollars keeps the US dollar artificially inflated? I mean if we owe a ton of dollars to people it's seems like it's in their best interest to make sure those dollars are worth something. I feel like this is a real balancing act, almost a house of cards. Pull out one card and it all falls down. Personally since I live in a foreign country I find this a little concerning. Right now things are great. The dollar's currently about 13-1 against the peso so things are good. But should the dollar drop suddenly I could find my rent going from a couple hundred to over a grand in a very short time. Not only would my rent go through the roof so would all my living expenses. Any one with financial experience have any thoughts on your debt? What the dollar value might be in the near future?
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I used to drink to drown my sorrows, but the damned things have learned how to swim- Frida Kahlo Vice President Starkizzer Fan Club |
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04-22-2009, 07:09 AM | #3 (permalink) |
Tilted Cat Head
Administrator
Location: Manhattan, NY
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Hmmm seems to me that again, when the music stops there will not be enough seats for everyone in the game of economy musical chairs.
which reminds me...of that 2007 Visa debit card commercial "Because money shouldn't slow you down!" If I'm not mistaken cynosure, we hold land and factories in China to tune of almost that same amount. This is like a mutual assured destruction of both if both groups reneged on their obligations.
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04-22-2009, 07:24 AM | #4 (permalink) |
Super Moderator
Location: essex ma
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well here's yet another of these philosophical problems. in neoliberal land, the economy is understood as a discrete system that floats in the air above everything else, populated by happy rational actors who think only of themselves but manage it in such a way that the rest of us should be grateful, and that floating system is itself thought of as closed and as tending toward equilibrium. so that means the sale of bonds at point a has to correspond to some future situation that will resemble that of point a--not because there's any particular basis for that, but because the way of thinking about the airborne system that is the economy forces you into it. this would not be problematic in itself, because it's always possible for folk to entertain loopy conceptions of things and none of them particularly matter. but neoliberals tend also not to like complexity very much so they tend to assume that there's one and only one way to think about the economy and that they know that one and only one way.
an alternate way of thinking about the economy is as a dynamic, open-ended collection of processes that the state can interact with or direct and that can be kept in motion in such a way that the situation at poin a may not particularly resemble the situation at a future point so that projections forward from point a really don't mean a whole lot--so long as the system continues to operate that is. neoliberals think the economy as a type of thing in any event, so motion is not really in their worldview--activity is, but somehow or another that's different from motion. if it weren't different from motion, you'd be hardpressed to see how this whole equilibrium thing made any sense, and besides it doesn't make sense even for neoliberals because they've against all reason substituted "growth" for "equilibrium" and well just look at the mess THAT created. anyway, you can see in these conceptions of the future two different ways of basically throwing the dice--one that assumes for aesthetic reasons stasis, even as it likes to blab about growth, and the other that assume motion and/or expansion (they aren't necessarily the same) and debt as an enabling device which underpins the actions of the state, the function of which is (in part) to direct the economic systems toward desirable political and/or social ends. so for neoliberals, debt is scary; for more keynesian types, it's a non-issue. unless the party stops. but if the party stops, we're all fucked anyway to the extent that we live inside the party. so i think this is a non-question. nation-states are emptier and emptier every day emptier and emptier. modern capitalist nation-states are mostly creations of the 20th century in any event, so they haven't been around that long and haven't worked out so well think maybe the same problems as the bourgeois nuclear family. a stupid idea that doesn't work but that does enable a certain illusion of autonomy, most of which is obtained by not thinking real hard about what autonomy might be. neoliberals typically have an even bigger problem facing the dissolution of the nation-state than they have with the arbitrariness of their positions on the economy, so you can imagine that this transnational bond-holding business is all terribly upsetting to them. the other structuring fiction for alot of these folk is that they think the state is like a giant individual and that the state's relation to debt is like that of an individual's relation to their credit card. i think that's quaint.
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04-22-2009, 09:58 AM | #5 (permalink) |
Living in a Warmer Insanity
Super Moderator
Location: Yucatan, Mexico
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Foreclose and own us or more like US. Either that or just start having the US citizens make clothes for them at .04 an hour.
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I used to drink to drown my sorrows, but the damned things have learned how to swim- Frida Kahlo Vice President Starkizzer Fan Club |
04-22-2009, 10:44 AM | #6 (permalink) |
warrior bodhisattva
Super Moderator
Location: East-central Canada
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In short, the American bond market would collapse and America would have to cut much of the military budget just to make ends meet.
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Knowing that death is certain and that the time of death is uncertain, what's the most important thing? —Bhikkhuni Pema Chödrön Humankind cannot bear very much reality. —From "Burnt Norton," Four Quartets (1936), T. S. Eliot |
04-22-2009, 02:32 PM | #7 (permalink) |
Living in a Warmer Insanity
Super Moderator
Location: Yucatan, Mexico
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You don't understand the states at all. The US government would cut every program other then the military.
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I used to drink to drown my sorrows, but the damned things have learned how to swim- Frida Kahlo Vice President Starkizzer Fan Club |
04-23-2009, 05:08 AM | #8 (permalink) | |
Nothing
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The military maintains the international pre-eminence, the pacification programs are the bare minimum to keep the domestic populace in line. Not just the poorest, either... Generally the middle classes of every nation are the largest nibbler on governmental knockers(breasts). Direct and indirect.
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"I do not agree that the dog in a manger has the final right to the manger even though he may have lain there for a very long time. I do not admit that right. I do not admit for instance, that a great wrong has been done to the Red Indians of America or the black people of Australia. I do not admit that a wrong has been done to these people by the fact that a stronger race, a higher-grade race, a more worldly wise race to put it that way, has come in and taken their place." - Winston Churchill, 1937 --{ORLY?}-- |
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04-23-2009, 07:34 AM | #9 (permalink) |
Living in a Warmer Insanity
Super Moderator
Location: Yucatan, Mexico
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Oh you scare enough people that "they" are coming to kill you and you'll have them sending in their entitlement checks and planting victory gardens.
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I used to drink to drown my sorrows, but the damned things have learned how to swim- Frida Kahlo Vice President Starkizzer Fan Club |
04-23-2009, 09:33 AM | #10 (permalink) |
Nothing
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You can't feed a family entirely on a victory garden, particularly in an urban block.
You can, however, cause chaos.
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"I do not agree that the dog in a manger has the final right to the manger even though he may have lain there for a very long time. I do not admit that right. I do not admit for instance, that a great wrong has been done to the Red Indians of America or the black people of Australia. I do not admit that a wrong has been done to these people by the fact that a stronger race, a higher-grade race, a more worldly wise race to put it that way, has come in and taken their place." - Winston Churchill, 1937 --{ORLY?}-- |
04-23-2009, 09:56 AM | #11 (permalink) | ||
... a sort of licensed troubleshooter.
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If you mean the national debt, assuming things continue on their current course there will be a breaking point where it's no longer prudent to invest in the US and things start to free-fall. This free fall will be the great American bubble burst. Future generations will use this as their prime example of economic failure in a modern society for generations the way we might use Russia. As far as personal debt, I don't really have any. I bought my house from a family member and was able to pay it off quickly enough, I own my car, furniture, electronics, etc. Sure, I have small credit card debt, but I pay it off completely every month. Right now I think there's a $30 dinner charge from Aquis (great restaurant, if you're ever in San Jose you should stop by) on my Visa and I'll pay that off when my next payment is due. That's it. I'd be a massive hypocrite if I had a lot of debt, considering how often I speak out against the debt system. I don't think debt and credit should exist at all. If I remember correctly, the size of the Credit Default Swaps market is about $64t and the GDP of the entire planet is about $56t. If that's not an indication that there's a big problem, I don't know what is. I understand that people are raised in an economic reality that includes debt and credit as necessities, but they enable the kind of insane economic problems that we're seeing right now so effectively. So long as people—and governments—have the option of spending money they don't have, they will do so. It's not even a matter of people not being responsible, because you can only expect your average person or government to be so responsible before giving into having seemingly free money. It's too much temptation, and when you combine that with really stupid economic theory, the theory that RB so eloquently outlined in the second sentence of his post above, it can only result in massive wealth inequality and instability... and substantial debt. Edit: here's the link for the GDP vs. CDS market statistic. Last edited by Willravel; 04-23-2009 at 10:09 AM.. |
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04-23-2009, 09:57 AM | #12 (permalink) |
Living in a Warmer Insanity
Super Moderator
Location: Yucatan, Mexico
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Tell that to the Cubans. But I get your point. I just think you underestimate the amount of pull the military industrial complex has in the states. The lengths they'll go to keep the cash cow alive is stunning, IMHO.
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I used to drink to drown my sorrows, but the damned things have learned how to swim- Frida Kahlo Vice President Starkizzer Fan Club |
05-05-2009, 03:16 PM | #16 (permalink) |
Psycho
Location: the center of the multiverse
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Ha-ha-haaa! That video is so-ooo indicative of the Big Problem, which involves the U.S. economy and the dependent lifestyle of its people. And what's really ironic and sadly funny is that Visa is so arrogant and so insensitive to the problem (at least, they were back in 2007), that they would actually create a commercial like that.
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Tags |
deficit, dollar, finance, national debt |
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