National Debt at Record $9 Trillion

[sandman]

I base my opinions on raw data available right now.

kinda stating the obvious. what do you think the Andersen Forecast does, look at data from a year ago???

and this Forecast is one of the most respected.

[SLCPUNK]

What do you want?

You've got economists putting up raw data that says we are on the cusp of a recession, and the fed dumping money into the system to keep things moving along.

Then we have others that believe the economy is just fine.

I don't agree with that assessment.

I think the bill just came due for our national "exuberance" over the last several years-time to pay up. A housing market void of fundamentals is bringing the house of cards down. Like I said, Greenspan claimed there was no bubble either, and look what happened.

[AbominableHoman]

We're big spenders, so what?

Other countries are just jealous. 

[SLCPUNK]

Greenspan: Odds of a Recessions Are Rising, Economic Growth Is Getting Close to 'Stall Speed'

WASHINGTON (AP) -- Former Federal Reserve Chairman Alan Greenspan says the odds the U.S. will fall into a recession are "clearly rising" and he believes economic growth is "getting close to stall speed."

Greenspan, who ran the central bank for 18 1/2 years, until early 2006, offered his views on the economy in an interview on NPR News' Morning Edition that will air on Friday. Excerpts of the interview were released on Thursday.

A severe slump in the housing market, a stubborn credit crisis and turbulence on Wall Street are endangering the country's economic health. Growth in the current October through December period is expected to have slowed to a feeble pace of just 1.5 percent, or less.

Economists, including Greenspan, have warned that the chances of a recession are growing.

Asked whether the economy will tip into a recession -- something that has not happened since 2001 -- Greenspan said, "It's too soon to say, but the odds are clearly rising."

He said he felt this way because of the slowing pace of growth. "We are getting close to stall speed," he said. "We are far more vulnerable at levels where growth is so slow than we would be otherwise," he added. "Indeed, it's like someone who has an immune system that's not working very well is subject to all sorts of diseases and the economy at this lever of growth is subject to all sorts of shocks."

Greenspan's remarks come just days after the Federal Reserve, under Chairman Ben Bernanke, sliced a key interest rate for a third time this year to prevent the housing and credit troubles from sinking the economy.

The situation poses the biggest challenge yet to Bernanke since succeeding Greenspan in February 2006.

Some analysts have questioned whether Bernanke waited too long to cut the Fed's key rate and whether he has acted aggressively enough to soothe the economy's woes. The Fed initially dropped its key rate in September, the first reduction in four years. That was followed up by additional rate cuts in late October and then again on Tuesday.

Greenspan again rejected criticism that his policy actions helped to feed a housing boom that eventually went bust. Critics say Greenspan held interest rates too low for too long after the 2001 recession.

To have prevented such euphoria in housing that fed a bubble in prices, Greenspan said the Fed would have had to jack up interest rates so high that it would have damaged the economy. "That would have broken the back of the economy, and brought the housing boom down," Greenspan said.

[sandman]

too soon to say if a recesion will happen. seems reasonable. probably being extra careful, or negative even, since he was dead wrong on the housing market outlook.

[fuckin crazy]

The larget jump in inflation since 1973.

Stocks drop after consumer inflation rises
Report shows consumer price index up 0.8 percent in November

NEW YORK - Stocks retreated Friday after a jump in consumer inflation raised concerns about how much freedom the Federal Reserve has to continue cutting interest rates.

The Labor Department said the consumer price index rose 0.8 percent in November amid a spike in gasoline prices. The report also found large increases in the cost of clothing, airline tickets and prescription drugs.

The report raises questions about the Fed?s options for priming the economy. The Fed this week lowered interest rates and announced a plan to align with other key central banks and offer loans to pressed lenders around the world. But while it wants to stimulate the U.S. economy and make lending easier among banks wary of faltering debt, the Fed also has to keep a watchful eye on inflation.

? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?[ ... ]

Friday?s report on inflation follows a reading Thursday that showed the biggest jump in inflation at the wholesale level in 34 years.



Oh, but wait ... it gets better

The uptick in core inflation is unnerving, Dye said, because it makes it harder for the Fed to justify further rate cuts.

 It doesn't really matter who is elected, we are headed for a mess.? It will take years to correct the errors of Bush's failed policies.

[JMack]

Makes sense to why the Fed cut rates only 1/4% rather than the expected 1/2%
I'm going to kick in $100.00 so now it's only $899,999,900.00 now if we all just kick in we'll right this ship.
What's this string tied on my finger for?

[Prometheus]

a little tid bit on canadian debt, the total including all provincial and municipal is 736 billion and falling about $600 a second

[polluxlm]

a little tid bit on canadian debt, the total including all provincial and municipal is 736 billion and falling about $600 a second

Only 50 years left then

Makes sense to why the Fed cut rates only 1/4% rather than the expected 1/2%
I'm going to kick in $100.00 so now it's only $899,999,900.00 now if we all just kick in we'll right this ship.
What's this string tied on my finger for?

Actually it's 8,999,999,999,900.00

[Prometheus]

lol

well the net debt is something like 436B for the fed alone, and that thanks to record tax revenues and a red hot economy over the last few years has delivered huges surpluses that are required to be paid down on the debt.

This July past we dumped 13B on it, and this coming year it is looking like we could be dumping as much or more on it as well. taking out the surplus payments we pay around 45B a year including intrest. If we changed the payment plan to a non blended weekly payback we could save as much as 20B over the next 22yrs (this is for total debt not just net debt). At our current repayment rate it will take only 9 years to eliminate the debt. and about a total of 16yrs for all govermental debt in canada.

As a bonus side we are in the wake of some decent tax cuts that will really be swining through over the next month, a reduction to personal income tax as well as a sales tax roll back. Cant wait to see what the budget is going to look like this coming spring

Things that Id like to see;

Increase spending in health care
Increase spending on childcare
Increase spending on post secondary education
Lock the defence budget to 2.5% GDP allowing for a natural increase year over year to macth that of inflation (we still dont have the manpower nor the equipment that we really do need, and have needed for some time, though we are getting better)
there are others as well  but these are the mains