US Government Runs Out of Money

Tefal said:
does mean you're not going to get shot by rampaging hill billies.
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And you're going to get stabbed by rampaging chavs :D

There isn't going to be any rampaging hill billies. That has never happened in the history of America in a situation that wasn't politically motivated like the freestaters, KKK, or civil war. When the welfare checks stop arriving there will however be riots in the inner cities (which explode at any excuse, I can give you a long list of riots) and that's all I would expect.

If everything does collapse the UK/US will end up looking like Brazil/South Africa/Mexico/former soviet bloc/etc.

Basically business as usual but with a much lower standard of life and tons of really poor people. Crime will sky rocket. Kidnappings will be common. The police will be corrupt as ****. Rich people will live in gated compounds and drive armored cars. Middle class neighborhoods will have private security patrols.

I don't have much of a problem with that as long as I can be armed 24/7.
 
Efour2 said:
Cant wait for capitalism to collapse.
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Communism perhaps? ;)

Andrew_McP said:
They own a big chunk, but I'm pretty sure the Fed now owns more of the US national debt than China (which has about $900 billion, last I heard).

That's why inflation "isn't a problem".
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Just under 60% of the States GDP is owed to debt, China owes about 17.5% of it's GDP. They are not the worst though, Japan owes over 200% of its GDP to debt.

Inflation is a major problem, its one of the reasons why house prices go up, and is a contributing factor to why we went through an economic recession.
 
kwerk said:
What's causing the increases isn't exactly inflation, it's investors buying commodities (something made a lot easier with the introduction of ETFs) out of the fear of inflation. Sort of a self fulfilling prophecy!

Millions of people buying corn/wheat/cattle/cocoa indexes as easy as buying Apple stock and oh no food prices are increasing!!!
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What do the ETFs have to do with what you are talking about? Are you referring to derivatives, specifically future contracts, perhaps?

An ETF is simply an investment vehicle that invests in a number of shares trying to simulate an index or particular class of assets. ETFs with dynamic alocation of funds (24h) on futures/swaps/etc that could affect the price of the underlying asset (the commodity in this case) are few and not very common for the mass of investors to use.

Unless I have got something wrong, in which case please elaborate.
 
.Lethal said:
Communism perhaps? ;)



Just under 60% of the States GDP is owed to debt, China owes about 17.5% of it's GDP. They are not the worst though, Japan owes over 200% of its GDP to debt.

Inflation is a major problem, its one of the reasons why house prices go up, and is a contributing factor to why we went through an economic recession.
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Inflation didn't really increase house prices, the stupid prices people were willing to pay increased house prices. People being idiots and borrowing way too much to buy an overpriced house with easy credit. Once you get enough people doing it, the whole average just keeps going up and up until it breaks which is a large part of how the recession was started.

You can't thousands of people 250, 000 to give to someone else and then have the original borrower default.

Until house prices move back to roughly where they belong, I can't see how we can sort out all this mess.
 
kgi said:
What do the ETFs have to do with what you are talking about? Are you referring to derivatives, specifically future contracts, perhaps?

An ETF is simply an investment vehicle that invests in a number of shares trying to simulate an index or particular class of assets. ETFs with dynamic alocation of funds (24h) on futures/swaps/etc that could affect the price of the underlying asset (the commodity in this case) are few and not very common for the mass of investors to use.

Unless I have got something wrong, in which case please elaborate.
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I'm talking about the ease of which people can speculate on crops compared to before 2008 or 2007 or whenever they all started popping up in US because you don't need to mess around with a futures account you just buy the ETF like a normal stock and they do the contracts. They have short ones that make it very easy to short sell commodities too. Not to mention how easy they can be leveraged up. Obviously there is an underlying cause for the prices based on crop yields and weather and stuff but it makes it much easier for a bubble to happen and inflate the prices. It's like when all the casual investors jumped on oil a couple years ago and gas went up to $4.

I don't see how it is real inflation because only certain things are going up (the stuff investors are buying). Wages and houses and things are steady or dropping. The money the fed is supposedly printing is not getting out it's just sitting around in these banks who aren't loaning it out.
 
Castiel said:
When the Presidency and the Senate are controlled by different parties this is what happens.
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There is a Democratic majority in the Senate and a Republican majority in Congress.

rypt said:
The USA spends $600 more per person on health care than UK, that is from GOVERNMENT spending.
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They spend much more than an extra $600. Overall the US spends between $6,000-$7,000 per capita on healthcare. By far the highest in the world.


For anyone interested in the lunatic asylum that is US politics you can watch MSNBC on www.justin.tv. Their political commentary starts at around 10/11PM UK time and runs practically non-stop for four hours.
 
philip2009 said:
They spend much more than an extra $600. Overall the US spends between $6,000-$7,000 per capita on healthcare. By far the highest in the world.
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I was talking about just tax money, ie they could fund the USA-NHS if they wanted to without increasing tax rates
 
rypt said:
I was talking about just tax money, ie they could fund the USA-NHS if they wanted to without increasing tax rates
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No they couldn't - because they'd need to build the system first, at massive cost.

Starting something up costs more than keeping it running. Only in ryptworld can you say 'Look, they spend more per capita than we do, ergo they could fund an NHS'.
 
[TW]Fox;18860522 said:
No they couldn't - because they'd need to build the system first, at massive cost.

Starting something up costs more than keeping it running. Only in ryptworld can you say 'Look, they spend more per capita than we do, ergo they could fund an NHS'.
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You do not need to have publicly owned hospitals in order to have universal healthcare, in fact a system where there is competition would work better.

USA already has all the hospital infrastructure in place, they just need new laws, rules and regulations.
 
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