Re: US debt ceiling talks fold after Republican walkout

[Guest guest]

They just don't get it. Spending is what is causing the problems. Taxes can't be raised high enough to cover it all and debt has to stop. Still Timmy G. wants to ramp up taxes on small business to make up the shortfall. Maybe if they targets the really rich and all the tax cheats in the Democrat party they might make a little dent.

Anyway, this is all why the Fed and this administration are pursuing an inflationary policy and why they are lying about the real inflation rate. They say it is 1.5% or so, but when you leave the grocery with a traditional set of good that used to cost about $60 that now cost $80 or more depending on where you buy and if you use coupons, that's inflation. Others things are going up in price as well. Not many of the things the Fed uses to track inflation like housing, computers, TV's and such. Those are all falling but real necessities like energy, gas and food are all up sharply.

The inflation they are producing on purpose is intended to create the illusion that everyone is better off because there is more cash flying around in the system. Most people equate cash with wealth but that confusing a tool with the finished product. By that I mean money is merely a tool for transactions and not a measure of actual wealth like gold, productive farmland, a factory, or in other words things that make things or things of their own material value. We aren't increasing the stock of real things, just imaginary money. So, the more funny money chasing fewer real goods, the more prices will rise. Until production or real things increases or cash is taken out of the system, the more this will continue.

Eventually the point will be reached when even the dimmest person will realize the money isn't worth squat because there is nothing to buy, but by then it may well be too late. However, the currency will still inflate because they will keep printing and they will do this in an effort to pay off debts with worthless money. I think China knows this and that is why they are buying up companies and oil lands in the US before all the dollars they hold as debt and trade imbalances becomes worthless.

In a message dated 6/24/2011 12:03:34 A.M. Eastern Daylight Time, no_reply writes:

Crucial high-level talks on raising the US borrowing limit collapsed after Republicans walked out, accusing the White House of provoking an impasse with demands to raise spending and taxes.