Deficit fears

May 26, 2009

I think strategist Andy Busch of BMO Capital Markets makes a great point in his morning note:

The issue of the radical fiscal experiment that is now underway in the United States is dominating stock, bond, and currency markets.  During World War II, the US debt had exceeded the size of GDP and had to be reduced by draconian methods.  The US is embarking upon a debt issuance program which is on track to take the debt total back above the size of GDP.

2 comments

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I definitely agree with his statement. The US is up to it’s neck in debt and that is what cause this crisis.

http://en.wikipedia.org/wiki/US_total_cu mulative_debt_per_person

There you will so how amazingly large all of America’s debt actually is.

Posted by Eldon Lopes | Report as abusive

The “perfect storm” is happening because we have people in office who don’t have a clue how business really works! They do know how to milk a buck out of our back-sides though. They know how to spend money we don’t have to play “richy-rich” like “yo bling-bling” big spenders!

First they….

*Demanded that the automakers turn over to politically correct green cars overnight last summer, as if the auto makers don’t rely on the profits from their current inventory for capitol to make the next generation of cars…Now what do we get?
A once-not-so-long-ago solvent industry forced onto life-support, GM failing, thanks to the GREEN bunch and their party!
And vast unemployment is coming as the plants shut their doors!Now that’s worth it to save the planet! Forget the GDP!
(BRAIN DAMAGE, that’s all I can say.)

The greenies still want to…

*Fully shut down the oil exploration and drilling in the US…What will we get this winter and beyond for that high-minded foolishness?
Higher oil and gas prices! We need that! That move will make the UN and Al G.happy instead of employ and sustain our people. What will that do to the GDP when we have to buy foreign oil instead of produce it ourselves becaue we have no new wells to rely on in the future?

More BRAIN DAMMAGE!

Right away we just had to implement the Democrat’s whole agenda, never-mind that we just had bailed out the banking industry spending billions….Gee it’s only barrowed money we’re spending on the folks who elected us!!!

*So we’re spending barrowed money like it is going out of style on drivel stuff and projects and non-existantgreen jobs…Now what do you get?
Thanks for the huge deficites for very little return, and a wellfare nation.

And of course we…
*Bail out every creep who got us into this mess with greed and corruption to aid them. Instead of throwing their buttoms in jail for not paying their taxes and the corruption…What justice do we get?
Absolutely nothing but drained investment accounts.

CHANGE…TOO MUCH CHANGE…WAY TOO FAST!
That’s the problem! It costs lots of money to make CHANGE happen…more than we have so we are spending faster than we make it.

And now the big spenders want health care for everybody, even those who don’t put into the pot as much as they’ll take out! A free-for-all!
Where’s the debt limit going to end up with that pie-in-the-sky idea, Democrats?

When do you think those foreingners are going to degrade our rating and up the lending rates out of sight because we’ve surpassed our income tax revenues to make the payments? When do you think they’ll call in their debts like the oil futures buyers did when they saw the gig was up last October and pulled out their money?

Debt is not a toy to play with! Stop playing BIG DADDY pandering to every jerk who supported the party!
Stop spending!