US facing debt time bomb

[bugscufle]

With President-elect Barack Obama and congressional Democrats considering a massive spending package aimed at pulling the nation out of recession, the national debt is projected to jump by as much as $2 trillion this year, an unprecedented increase that could test the world's appetite for financing U.S. government spending.

About 40 percent of the debt held by private investors will mature in a year or less. When those loans come due, the Treasury will have to borrow more money to repay them, even as it launches perhaps the most aggressive expansion of U.S. debt in modern history.


http://www.msnbc.msn.com/id/28476798/

[farmmilkmama]

You mean someone finally figured out that when you make ridiculous decisions, one after the other, that you eventually end up with a much larger problem? Amazing!

If only the American people could live by the same standards/rules that the government does. Ah, that would be the life!

[RangerRick]

Well, if the sky isn't falling it may not be too long before it does.

:o

Rick

edited: I wonder what this is going to do to silver?

[Terri]

We were facing the time bomb anyways.

I hope it is a great gardening year! And, I ordered some alfalfa seeds for sprouting that I hope will give the chickens nutritious forage, once it is in the ground and grown up large: have you SEEN the price of chicken feed, lately???? I can carry the forage to them, as the varmints this year are too bad for them to be roaming.

2 years ago I saw no other outcome but recession. Right now, I see no outcome other than inflation.

I cannot change what the government does, but, I CAN change my own finances by producing more! More vegetables, more chicken feed, and more home-made things!

[pinetreefarm]

Just to add to the issue but is relevant is the possible gas tax hike. This hike is "supposed" to pay for infrastructure improvements but will, IMHO, will increase inflation as well as hurt the average person.
Let's face it, folks, we are the ones that are going to have to pay for it all. They will have to increase taxes to pay for the "bailout" of the fatcats and we will pay for the infrastructure improvements that go to help big business transport the "made in China" products. Then we will pay for the product itself at an inflated price due to the dollar being devalued.

Well, I have thoroughly depressed myself....oh wait.. I forgot. My garden feeds our family. I buy locally whereever possible. I buy on line to avoid sales tax.. I make whatever I can to save money. I buy second hand. I barter as much as possible. Yeah...maybe things will not to too bad.

http://www.foxnews.com/politics/2009/01/01/commission-urges-percent-hike-fuel-taxes-fund-highway-construction/
Pine

[Terri]

If the garden produces REALLY well, I think that I will try a veggie stand in front of my house. Inflated prices HURT when you are paying the electric bill, but, it does not hurt at all when you are selling!

Of course, this time of year, in my minds eye, my garden is ALWAYS beautifull, and groaning with produce: Once it is planted it is not always so good!

[Wyobuckaroo]

Howdy

Have read things by people who seem to have more common sense than many with high powered educations.

They are predicting wave after wave of peaks and valleys in the economic problems ahead. Not so much a "atomic blast" affect. For instance, the real estate forclosur thing that has happened, is just the first wave of people that were the most "vulnerable"

As time goes on more and more levels of people will fall to there own demise.

SeewhatImean
Wyo

[maineyankee]

Terri,
I've been planning this season's garden and ordering seed this week. (good morale booster,it's close to zero outside)

It's amazing how beautifull my garden is in my head this time of year.

[Michael32170]

Yes, this is nothing new. The way the US has been handling this problem is to print more money are use inflation to reduce the relative value of the outstanding debt.