The real deal on the debt debate
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This is a great read.

I watched some news programs last Sunday trying to understand the debt ceiling. As usual,much finger pointing to the other side.

From what I understand, if the debt ceiling isn't increased there will be no money to pay debts. If it is increased the government can borrow money to pay it's debts. What I do not understand is where this borrowed money would come from? From or who would the government borrow money or do they just make more? Steal more? ah-hem...I mean take from peter to pay Paul. I thought peter was broke too.

This is who they have borrowed from in the past. If you have a mutual fund, they may have borrowed some money from you, depending on the kind of fund you might have.

http://upload.wikimedia.org/wikipedi...es_by_year.gif

Thanks glatt.

SOoo. Off topic but relates to your comment. I am wondering, in light of the economics of the moment, if company profit sharing at a 3/1 match shouldn't be considered at this time.

OR Maybe if there was a loss, I wouldn't be losing my own contributions.

On Topic.

Just looking at the table, I see borrowing from the federal reserve has gone down by 5% from 2007-2008 and foreign borrowing has increased 3% in the same time frame.

I could be wrong, but I am thinking this is the case because there wasn't any money in the federal reserve outside of making money and raising the taxes on SS and raising the retirement age. Doesn't the government borrow (spend ) 40% of whatever is generated already. I understand the need not to default on debts but I think the government needs to also make some cuts in spending as well.

If you can swing it, it's usually a good idea to tighten a belt and save, especially if the company is going to match some of it.

I've been wishing I could have a crystal ball. Lots of uncertainty right now. I'm actually not sure that Washington is going to get this thing fixed. I mean, they are fucking politicians, but they aren't insane, are they? If they default, I'm afraid it's gonna be real bad. Crystal ball, tell me, is it time to cash everything in for gold and start stocking up on guns and ammo?

If I could, buy gold, I would.

I think I can swing contributions. I do need to get my state exemptions up from zero. That was an oversight. I can put half of what I would save by increasing my exemptions, pay into profit sharing and come out with the same net check.

That said..

If they let it default then they are insane. If they are playing scare tactics to get the constituents riled up, to see who can push their own agenda further, then they are morally flawed. Why do they talk out of both sides of their faces.

They make a media circus out of something so crucially important.

I wouldn't. I saw yesterday that gold is selling for $1600 per ounce, an all time high. Should have bought it a couple of years ago.

It seems politicians always fight to the very end to get the political edge and then a plan gets passed at the last second. I'm hoping that is just a pragmatic approach to a very difficult political environment by experienced politicians (McConnell's deal shows this very well IMO).

The idealists are the ones that scare me. I'm starting to think many of the tea party republicans actually believe that defaulting could be a good option.

As annoying as it is, I'm beginning to believe this how the game has to be played for politicians. Or at least that strategy has been the most successful for politicians for past 50 or so years.

Exactly. They are the wild card, and they could hurt us all very badly. Everyone else is predictable. I think they aren't even sure what they are doing or how far they are willing to go.

I heard some commentator saying that this week is the week where everyone is going to put forward their plans that will never pass so they can point to their plans come election time and appease their base. And next week is when they finally put this thing to bed by making deals. But I'm not so sure the Tea party people are going to make a deal next wheek when they are supposed to.

It'll be time to buy lots of stocks in a couple of weeks.

True dat. I have a relative who deals in gold professionally, and he is a very happy man right now.

What Sheila Jackson Lee and Eric Cartman Have in Common

http://biggovernment.com/chartsock/2...ave-in-common/

Neither side cares about the country, they only care about the next election and holding on to power.