Breaking All Records: USA (estimated) National Debt Just Topped $9,001,000,000,000.00

You are happy if only people with money can go to the doctor, says a lot about you.
And you know that the US economy is depended on the illegal aliens, if they got sick USA would have even bigger problems.

 

Ok, you don't seem to understand how the money creation process works.
M1 is only a fraction of our money supply. The actual printing of money does not affect the money supply much compared to money that exist and increase only in accounts.
Much of the money created today is not created by the public sector, but by commercial banks. That is how the fractional banking system works, by the money multiplier.

Devaluation can occur for different reasons: demand pull, cost push, supply shock inflations, trade imbalances, budget deficits, etc.


You seem to want it both ways: a growing economy with no inflation (and perhaps full employment?). Unfortunately, that's not possible.

 

The M3 Supply has increesed by 50% over the last 6 years. 6 trillion to 9 trillion, The dollars is down at the same time by 50% againt the Euro or a 50% devaluation of the dollar.

 

Exactly.

So ReadyToGo if you don't have 50% more asset value, 50% more savings and a 50% increase in income during that time, then you are actually getting poorer.

 

The U.S. government is just ridiculous... you would think they would have more common sense...

 

Have I just not been paying attention or have none of the candidates(even most of the ones who started last year and have since dropped out, Ron Paul's the only one I can think of) really said anything much about our debt?

 

They will only have as much "common sense" as the American people demand. Until more voters actually start to feel the crunch and learn about things like monetary policy, the government will continue to print money like there is no tomorrow.

 

It's not that easy. The common reaction is that the government should do more to help but at the same time people don't want to pay more taxes. Until there is a balanced budget the problem is only going to get worse.

 

I agree we need a blanced budget and that people don't want to pay more taxes. I for one think we pay enough already. The problem is that instead of raising taxes to finance things like the war in Iraq, the government justs prints/borrows the money instead. That is an inflation tax, people don't see it right away. It's like the frog in boiling water anology. The frog doesn't noticed the steady increase in temperature, but eventually he is cooked!

 

Japan is on 2nd place in the world with over $1 trillion by foreign exchange reserves:


http://en.wikipedia.org/wiki/List_of_countries_by_foreign_exchange_reserves

Find the US in that list....its funny, but US is on 23rd place.

 

Wow, that is so much money!!!!

How did we get in that far??

:S