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alstry (34.98)

CURRENT BORROWING is the problem......

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August 19, 2010 – Comments (3)

Everybody talks about long term debt as a huge issue facing America.....including yours truly.

However, the real problem in America is dependence on CURRENT BORROWING........

The clearest example of an industry that was dependent on current borrowing was new home construction.....when it was easy to borrow, sales boomed.......when it became more difficult, sales dropped over 80%.......

Because college kids can borrow $20K per year each.....college professors make lots of money.....

What would happen if the kids couldn't borrow $20K?  especially now that they can't find jobs.

Right now, government at all levels is borrowing approaching $2 Trillion dollars each year.......enough to give 40 million families of four $50K per year.......

What would happen if government couldn't continue borrowing?

Once you understand the problem is CURRENT BORROWING......you understand the massive IMMEDIATE ISSUE facing America......and much of the world as credit is being cut off all around us.......

3 Comments – Post Your Own

#1) On August 19, 2010 at 9:28 AM, alstry (34.98) wrote:

Right now millions of government workers get paid simply because government is CURRENTLY BORROWING and paying them.......

millions of private sector workers don't get paid because they don't have access to credit.......

Millions of health care workers get paid because government is borowing money and paying medicaid/medicare.....

now thousands of local police officers and firefighters are losing jobs because their municipality doesn't have access to credit...

As are economy has now morphed into one dependent on credit to function......going forward, how will we as a nation determine who gets credit and who doesn't?

Why does a banker get credit but a farmer doesn't?

Why does a Federal judge get credit but a local judge doesn't?

These will all be very convulsive issues as we go forward.....

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#2) On August 19, 2010 at 10:06 AM, guiron (< 20) wrote:

Why does a Federal judge get credit but a local judge doesn't?

What does this mean?

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#3) On August 19, 2010 at 10:16 AM, alstry (34.98) wrote:

Right now local judges, court staff, and other support are getting cut and losing jobs because of lack of funding.......Federal funding remains strong simply because the Federal Government is borrowing massively and paying the judges.....

in both cases, the money doesn't exist, but for access to credit.....why should the Federal Judge have access to credit and not the State Judge?

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