In hindsight, the recent clown show of government "shut down" and "debt ceiling" was obvious staged. As I have argued earlier, neither side of the political spectrum wants austerity programs to solve the long-term insolvency of US finance. It increasingly looks like that both of the sides have committed to short-term fixes such as expanding the GDP at the same pace as the Sovereign debt in order to maintain relative stable debt to GDP ratio. The demographic engineering through Healthcare Reform and Immigration Reform are some of the temporary measures implemented or considered.
If this indeed is the plan of those who proclaim to have done the "God's work", then we know that by 2017, the US real GDP would likely reach $19 trillion (CBO and OMG estimates) with an impressive 4+% annual growth. While the total US sovereign debt could reach $20 trillion, the expected GDP to Debt ratio would held relatively stable.
When, or if, this scenario becomes materialized, the federal reserve might start to remove the backstop, i.e. the trillions of dollars handed over by the Creator (;-)). That is when the global equity market might get volatile, again. But, before that actually happens, the Federal Reserve will likely continue to pump the "Almighty Credit" into the global economic system, prompting the participants in the economy to become more "willing" to engage in the transactions so as to create the money needed to boost the economy.
Some prudent people might ask: what happen when the positive effects of these temporary fixes wear out and the negative effects become dominant many years from now? Since I am no genius nor wizard, I would say: do not need to worry about it because you are dealing with benign "Invisible Hand" here. In the worst scenario, a global debt RESET could be executed, and every country will have a clean balance sheet to start with.
WHY worry they keep telling us that our children will pay it, and if your children are like mind, they will pay it w/o asking questions......This younger generation throws money into the toilet and doesn't think a thing about tomorrow....What's another trillion here and there?
The US debt problem, including the off balance sheet items and future obligations in addition to the sovereign debt load on the book, has probably become too big to save. It is why nobody should worry about it.
Only idiots do not worry about it. I am surprised at how many big time economists do not worry about it. We are approaching a trillion dollars a year in just interest that we the people get absolutely nothing for our hard earned dollars that are taken from us as taxes.
Given the intention of the policy makers demonstrated in the recent "shut down" drama, the debt problem will get bigger and bigger. Someday, it might get too big to be fixed by men.
So why worry?
Have you listened to the financial analysts discuss the budget deal? You are absolutely correct, congress is loaded with egotists, crooks and perverts. The crooks know the country is about BK, they shut down the non-essential part of the country's gov't. A deal was reached, but did you see how much PORK was put into the deal? Just one slice: $2.9 billion dollars for a dam on the Ohio river; the entire deal is loaded with pork that the country cannot afford. I guess you know that for every dollar the gov't spends today it must borrow at least 40 cents.
There are very few patriots in congress today. MO.
This is exactly how I viewed everything before the recent fake drama in DC.
But after the drama, I am convinced that politicians believed that continued debt expansion is the favorite option and they are working with the Wall Street to engineer it properly.
The debt problem might be too big for men to solve. Quit worrying, knowing the "Invisible Hand" will take care of it somehow. At least that is my new approach.
The debt problem has increasingly become too big to be fixed by men. Maybe we should stop worrying about it, knowing somehow or the other the "Invisible Hand" ( a term coined by Adam Smith) will eventually take care of it.
This is a rational choice.
If each human being is a sovereign entity, then should we align the global debt reset along the line of population, at least among the biggest economies?
Is it true, from Creator's point of view, a person from impoverished Africa region is the same as Mr. Bill Gates?