who's going to pay the bill

[Harbourwoodwork]

It looks like the American's are in a pickle 17.4 trillion debt 600 billion needed from the tax payers 5.4 billion spent on the military and no one willing to be the bringer of bad news,with a massive tax bill to be paid, they say, they will be on a fiscal cliffedge by next week and not be able to pay any debt ,god knows how that will affect the rest of us.
from a good report on Democrecy Now yesterday,worth a look at,

 

[enyam]

Obama is a little bit more optimistic.

http://www.telegraph.co.uk/finance/...modestly-optimistic-of-fiscal-cliff-deal.html

 

[chapeau]

Well, two things are likely.

1) They default
2) US dollar crashes in value.

Which means

Anybody holding US treasury bills will lose money. And that includes you and me.

After the meltdown the US will grow and do rather well. So it might be what they do... We wouldn't be so lucky over here and it would finish us off probably.

 

[Harbourwoodwork]

Obama is a little bit more optimistic.

http://www.telegraph.co.uk/finance/...-optimistic-of-fiscal-cliff-deal.html[/QUOTE]

Interesting state off affairs real bottom line stuff

 

[chapeau]

They won't pass anything by the deadline.

Taxes will go up, spending will go down.

Republicans will now be prepared to do a deal because they will be essentially voting for a tax cut. That will be a tax cut which results in taxes being higher than they are today, but lower than they will be after the tax rises.

And voting for tax cuts is all they care about as they have a dogma to protect.

The Republicans couldn't give a flying fig about doing the best thing for America, they simply want to protect their record of only voting for tax cuts.

It's completely barking mad but that's how American politics works.

They will kick the can down the road and in a couple of years they will be at it again but 20 trillion in debt. And one day they will simply self destruct.

 

[ladylola]

It looks like the American's are in a pickle 17.4 trillion debt 600 billion needed, they will be on a fiscal cliffedge by next week and not be able to pay any debt ,

That'll be the fault of all those socialists then

 

[chapeau]

They don't have socialist politicians in the USA. Thatcher would have been a Democrat. And I actually think Blair would have been a Republican.

They are in debt mainly because of Republicans. They love spending money but hate raising taxes.

Clinton actually managed to balance the budget !

 

[ladylola]

Yeah I know they don't have socialist hence the rolling eyes , they just have the right, the far right and the tea party.
Thatcher a democrat and son of thatcher , Tory Blair, a republican maybe who knows but he sure wouldn't have been thrown out of American politics for being left wing.

 

[Norcon]

In 1913 a monster was born. The federal reserve.
Was it owned by the government?
Nope.
So who owns it then?
Ans = A group of private bankers that leaves any government in awe of their power.

Google wrote

The Federal Reserve System is responsible for the American Nightmare. Only the abolition of the Fed, and the return to government issued currency "Greenbacks", as done by Lincoln and Kennedy (both assassinated), can prevent the impoverishment (virtual enslavement) of the people of the United States and many other nations in a similar plight.

They could end their debt crisis in a few years if they raised fuel taxes. They pay about 12% compared with nearly 70% here in the UK.

Low fuel taxes is a bit like owning guns to Americans. A birthright!
So their only option is too shoot themselves in the foot.

 

[enyam]

Clinton actually managed to balance the budget !

But implemented social reforms which allowed people to buy their homes on the trailer parks,look where that as got them.

 

[chapeau]

People were buying homes on trailer parks for years before Clinton got in.

Now, if you want to drill down on the link between people buying homes in the US and the Federal Deficit, you should google "Fannie Mae" and "Freddie Mac".

 

[mdf290]

Glossing the facts Chapeu.

Fannie Mae and Freddy Mack were actually a Govt Sponsored Enteprise.
They only were responsible for 16% of toxic loans the other 84% being private lenders , However they were taking advantage of the DEREGULATION that the government put in place.

The Clinton administration of which Obama was an active member were instrumental in bring the collapse of the American financial system when they fined Banks for not allowing sub prime loans. In effect Clinton FORCED the banks to give loans to people who had no chance of paying back , hence the crash when the bubble burst.

Fannie Mae and Freddie Mac weren't guilty of anything other than actually carrying out the system the govt had put in place. It was not their responsibility to decide whether that would have a long term effect on the economy. That was the responsibility of the Govt and their advisors and they totally dropped it.

The Govt took the brakes of the financial system to suit political ends and with no surprise the train crashed The irony is they have voted Obama in again despite him being a part of the original cause.

 

[enyam]

People were buying homes on trailer parks for years before Clinton got in.

Now, if you want to drill down on the link between people buying homes in the US and the Federal Deficit, you should google "Fannie Mae" and "Freddie Mac".

They were being sold to people who could afford them not to all and sundry.No check was made on who could repay the loans.Fannie may and and freddy mac weren't so dumb as the B@B and Northern Rock though.

 

[chapeau]

Freddie Mac and Fannie Mae were set up years ago and have been tinkered with by all administrations.

Looks like this thread is in danger of being as polarised/partisan as the US political system

 

[enyam]

Only if you let it.