Comments on: Libertarian (Trade) Deficits

By: Mike Marks

Mike Marks — Sat, 17 Jul 2010 04:11:51 +0000

I almost stood up and applauded when I saw the following statement in you WND column today. “Far from comprising discrete parts, the economy is ineluctably interconnected.” What makes all of this even more interesting is that these elements are by their very nature mathematically unstable as most “non-cash” transactions involve some form of compounding interest.

By: Myron Pauli

Myron Pauli — Fri, 16 Jul 2010 21:15:36 +0000

Well, you look cute in your new car.

I own my house and car outright, and (not counting some medical bills that need to be deciphered with insurance and the pre-paid health savings plan) have ZERO liabilities. This is how I like it – perhaps making me the Anti-Keynesian. I have no idea if my frugality has penetrated to my daughter other than “Daddy you’re so cheap”. But I sure as hell do not wish to bail out spendaholic wastrels who can vote to confiscate my
assets, increase taxes, and print more money.

Americans are not the only people at fault. If some Asian wants to sell me cars, shirts, etc. for autographs of Tim Geithner on green paper with pictures of dead Americans, it is arguably a great trade. And there’s plenty of paper available for printing!

As for Postrel’s optimism – knowledge can be summed up on a thumb drive and sent overseas in a flash, American schools are dumbing mechanisms for politically correct Affirmative Action, and half of American jobs are lawyers/accountants suing/auditing/regulating each other – none of which CREATES real wealth. A nation of debtors addicted to purchasing frivolous items that they cannot afford is not in healthy shape.

By: DENNIS

DENNIS — Fri, 16 Jul 2010 16:26:17 +0000

Quite an article by Ilana in http://www.WorldNetDaily.com and it creates much thought about what each of us does in an economic sense. Some of my mental notes involved the following: 1. Rule of 72 – when borrowing, divide 72 by the Interest Rate to produce the “year span” to double the loan amount actually paid, e.g. $1,000 @ 6% means in 12 years, the payback amount rises from the original $1,000 to $2,000. 2. Every time one buys on credit, e.g. an automobile, this happens: An instant loss in value, depreciation, of the vehicle takes place such that if the down payment is insufficient, the buyer is immediately underwater on the loan simultaneously the loan principal immediately accrues interest thus increasing what is owed. Question: How will the U.S. government pay back those lenders who, by purchasing Government Bonds, have lent money to them / us? Residential and Commercial properties have been devalued. Many people are hard-pressed against the wall for income and increasing taxation will kill them. Unemployment is high. Finally, the Feds do not use GAAP and some writers say the actual debt, including all non-booked future obligations, could total in excess of $100 Trillion. What would you as leader of a foreign country demand from the U.S. for repayment? My opinion is we are where THEORY meets REALITY. I am very concerned.