The US Economy - A Ponzi Scheme

[Oerets]

Originally Posted by MrPots

Indeed. Kansas was well set financially until Brownback told the rich folks they didn't have to pay taxes any more. Now the red ink is endless.

Self inflicted wounds.....

Just their simple math from the Right. No money, no social programs. A way to cut the ""entitlements"" they don't like!



Barney

[merrylander]

Originally Posted by piece-itpete

And extending 'Bushes' tax cuts

Pete

He was rather naive with that one trying to be bipartisan with the GOP and he got mugged. Hell I had only been down here six months and knew enough then to never trust a Republican.

Laugh a minute Bobby Haircut is planning on running in '16

[whell]

Originally Posted by finnbow

Back to the Ponzi analogy. It's as much of a Ponzi scheme as refinancing your house is. It would economic malpractice if we didn't refinance debt at lower interest rates.

Bad analogy. Not sure if you can find any housing lender who would sell you a mortgage where you would only pay down interest without paying down any principle for the life of the loan.

If you could find one, I'd think such a mortgage product would be an example of economic malpractice. Of course, a loan like that would be a great example of the ARM products that got so many homeowners in trouble recently. Those homeowners gambled and lost on rising interest rates. Our gov't is making the same gamble with public debt.

[bobabode]

Once again you are conflating Micro vs Macro Economics and committing the fallacy of seeing everything as a 'Zero Sum' game.

Ref. http://en.wikipedia.org/wiki/Monetary_economics

edit - I would tend to agree that the stock market and corporations engage in Ponzi Schemes to the detriment of society as a whole.

[finnbow]

Originally Posted by whell

Bad analogy. Not sure if you can find any housing lender who would sell you a mortgage where you would only pay down interest without paying down any principle for the life of the loan.

If you could find one, I'd think such a mortgage product would be an example of economic malpractice. Of course, a loan like that would be a great example of the ARM products that got so many homeowners in trouble recently. Those homeowners gambled and lost on rising interest rates. Our gov't is making the same gamble with public debt.

The difference is that the US government can't, by indention, default (as long as we keep the 'Baggers silenced in the corner wearing dunce caps).

[whell]

Originally Posted by finnbow

The difference is that the US government can't, by indention, default (as long as we keep the 'Baggers silenced in the corner wearing dunce caps).

What's an indention? Is the the new progressive term for a tax?

The difference is that mortgage companies can't just print more money (or buy up their own notes) like Uncle Sam can.

[finnbow]

Originally Posted by whell

What's an indention? Is the the new progressive term for a tax?

The difference is that mortgage companies can't just print more money (or buy up their own notes) like Uncle Sam can.

Oops, meant "definition." For the very reason bolded, the US can't go bankrupt, per se, and thereby can't be a Ponzi scheme.

[piece-itpete]

You could print so much money it becomes worthless. The government wouldn't technically default but everyone would be screwed regardless.

Pete

[finnbow]

Originally Posted by piece-itpete

You could print so much money it becomes worthless. The government wouldn't technically default but everyone would be screwed regardless.

Pete

You could, but we haven't. If anything, our QE efforts were to too tame (but indeed necessary), as evidenced by our low interest rates.

[piece-itpete]

You're a brave, brave man Pat. If I were superstitious I would say knock on wood.

Pete