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Citigroup Inc. Message Board

  • geithnersboogieman geithnersboogieman Jul 16, 2011 9:48 PM Flag

    Everyone is making one Grand Assumption about the debt ceiling.

    The assumption that the U.S. economy is going to improve some much that unlimited debt can be repaid. Sorry, I don’t think so, the economy may do better but I don’t see it becoming so robust that unlimited debt can be repaid. The world economies are changing, growth capital is shifting elsewhere, a demographic change is occurring, spare consumer cash is be sucked up by uncontrollable health care cost, a housing bust that will take years if not a decade or more to work out, no new frontiers on the horizon, etc.

    The false dream frontier of everyone making a living off of shuffling money went bust. Going to find the same thing out about the health care field soon enough. Can’t expect to add millions more to the health care payrolls and expect to bring down costs.

    It is my opinion that taking on more debt poses far more risk than anything you can dream up about what will happen if the debt ceiling is not raised.

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    • An assumption everyone should make is the U.S. economy is entering a period similar to Japan. Plan for this type of economy and any upside will be a bonus.

      Given the above, raising taxes or austerity would not be practical for 20 years. This in itself is not practical so forget the concept of WAITING for a good economy. One problem with waiting for a good economy is the problems become hidden because there is a froth of money. Making changes during a down economy is the time to make changes.

      • 1 Reply to geithnersboogieman
      • We are back in the Carter years of stagflation all over again, except on a much higher disastrous level thanks to bonobo's incompetence and the libtards selfishly not caring.

        Don't let the government reports kid you, inflation is happening. With all of the debt being generated and monetized by the libtards it can't not happen. YOY prices in retail will confirm that. Take out housing, and the CPI would be several points higher.

        The cure is bringing spending down from the libtard height of 25% of GDP to a more historical average of 18 to 20% of GDP. And bringing the deficits down to 0 to 3% max of GDP as opposed to the Bonobo/libtard current rate of 10%. While simultaneously removing barriers to production and innovation and letting the market pick the winners in industry, not the government. Actually, the barriers need to be eliminated first so the sloths who are on unemployment will have a place to work when they are forced off the couch. (The libtard idea that unemployment benefits provides a 160% return to the economy is just ridiculous libtard mental insanity. If that were true, then we could just give everyone an unemployment bene of $100K per year and we'd be out of debt in a few months.)

        If this is done, growth, just like that that occurred during the Reagan era, would help take care of the debt within a decade as well as jobs immediately.

    • What is the plan if the debt ceiling is raised and hit again.

      The ceiling is glass and just about ready to crack.

      More debt poses more risk than anything.

    • We must be pc with our less fortunate. But I did give him the full set of all possible scenarios. He's still trying to decide. This may take a while.

    • The debt is not really a problem. It is being played as political football by both parties through the sham negotiations taking place now in Congress. With current US economy, the debt problem can be solved.

      The way to solve the debt problem now is just to abolish a big part of the Federal government. We can eliminate all of Social Security, Medicare, Medicaid, various departments such as HHS, HUD, Agriculture, Energy, Education, Labor, etc. and lots of useless government agencies such as DEA, AFT, BIA, FDIC, and so on. Eliminate the payroll tax and lower tax rates for everyone if we have a surplus.

      Liberal states will do fine from cutting down the Federal government because they can afford to keep much of the social spending going in their own states if they don't have to pay taxes to the Federal government to do all this social spending.

      • 5 Replies to lemonteeth79
      • "Liberal states will do fine from cutting down the Federal government because they can afford to keep much of the social spending going in their own states"

        California, New York and many other liberal states are saddled with debt they'll never be able to pay because of their liberals programs. It's wake up time, yellowteeth.

        """http://articles.nydailynews(dot com)/2009-12-01/news/17 942389_1_mayor-bloomberg-borrowing-highest-debt

      • Abolishing social security would be akin to defaulting on debt. The government received (actually forcibly took) money from working tax payers in return for paying it back after retiring. Same with medicare.

        If they would just give me back all of the money they took, even without interest, abolish SS and then not collect anymore, I'd go on my merry way.

        And I'd be ok with abolishing all social programs, but for those without the ability to think beyond the present, if you do that, you'd have to have a strong stomach for walking past poor folks without homes (most would be libs anyway, so not problem for me) and sick people dying for lack of treatment. Something you liberals historically have not been able to handle no matter the cost.

    • Pawlenty's plan is banking on 5% GDP growth a year. The American economy hasn't grown that fast in 50 years.

    • Geitner:

      Are you a communist?

    • Tell that to okayrice , who thinks the intrest only matter, he also thinks were staying at almost 0 % rates. There is a big storm brewing , they keep kicking the can,when it stops & reality sets in watch out. Buy some puts & leap out 3 yrs, & kick back & wait.

    • Wise commentary!!!!

 
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