So thats what you base your Down 3k calls on martis? post #: 7083495, and it seems lots of others do as well by the TU..
Why do you say the fiscal stimulus did not work? It worked very well in staving off one of the worst recessions of our time, it has not been given a chance to work, one package that didnt get every person in the world employed and that's it.. Give up. Government deficit= private sector surplus, private sector desperately needs more money, so the government spends (creates) more, simple.
The US has 14 trillion in debt because it represents a large portion of the money the government spent, but did not tax back, they 'borrow' the money as a monetary tool to remove excess reserves else the interest rate in the interbank money market would fall to zero percent, it is in this way that the consolidated entity (the central bank and treasury) determines the interest rate on US debt, the markets have no say in this, hence the recent S&P downgrade had no impact on the bond market (what a joke). That 14trillion figure represents private sector savings that the government at some point provided in exchange for real goods and services.
Apple has more money than the US treasury? What a joke, ignorant statement, how can a corporation that uses USD have more USD than the US treasury that has infinite quantity.
Yes, lets hope they don't cut govt. spenditure and raise taxes, it's un necessary, and so stupid it deserves desk head banging.
They can wipe the debt off overnight by simply debiting treasury accounts at the fed and crediting reserve accounts, ala quantitative easing, it's not creating new money, the only real effect is it removes private sector income in the way of interest payments. Theres no point removing the debt, the private markets loooove it, they cant get enough of it, a risk free interest bearing, practically infinately liquid asset that they can always fall back on, not to mention much of financial pricing theory revolves around this risk free asset.
Why would they default on their own currency, seems silly?
Europe can be solved, or not, it's the politicians choice, they can unify and give the ECB unconditional support to the member states and provide the funding when and as needed (exactly like states in the US or Australia have the support of the central bank/treasury), the current bond buying program is targeting the volume of purchases and not prices which has been proven the incorrect method many times before. Looks like we might be seeing a a eurobond sometime in the not too distant future, a bond backed by the creditworthiness of the ECB (infinite quantity of Euro's), depends if (when) Germany get get off their high horse and recognize that a central bank that can provide unconditional support to deficit nation's is an absolute necessity, trade deficity/surplus nations are inevitable in a union, your little single currency experiment has failed, time to be a grown up Merkel and fix it.
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