“Healthcare reform” is dead, bankrupcy even closer

Discussion in 'The Okie Corral' started by Kozel, Jan 24, 2010.

  1. Kozel

    Kozel

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    Now that “healthcare reform” is dead (according to Barnie Frank anyway) bankruptcy of USA got so much closer.

    One aspect of this “healthcare reform” everybody overlooked is the giant influx of new taxes collected and without expenses of “reform” coming about three years later. It was expected to save broke Federal Government for at least a little while longer.
    Obama did say that without that “reform” Federal Government will go bankrupt, he was not kidding.

    Last year Federal Government collected about 2 trillions in taxes but spent 4 trillions in the same period. This fiscal year they will need about 6 trillions to make it through the year. About 2 trillions of short-term treasuries must be rolled over and with what? That is in addition to roughly 2 trillions deficit projected and tax receipts falling off the cliff.

    Can somebody tell me how this country is going to make it through this year? I would like to be an optimist as much as anybody else but numbers just do not add up! Fed can’t just say “Oh. Lookie here, we found another four trillions under the couch!”

    Maybe Bernanke and Geitner, the two biggest financial magicians of all times will manage to pull the rabbit out of the hat and get US through this year. This is going to be one whale size rabbit and it will have to appear out of thimble size hat.
     
  2. rick458

    rick458 USS Texas BB-35

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    its easy you spend less than you have
     

  3. Isaiah1412

    Isaiah1412

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    Actually that's pretty much what they do.
     
  4. cranejc

    cranejc

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    we've always paid our debts. and not to mention, we have the biggest economy, which the world relies on - if we go down, the world goes down. also, we have the biggest stick, so....

    that's all info gathered through my 4 years of public baccalaureate education, as i'm sure will be asked.
     
  5. Javelin

    Javelin Got Glock? Silver Member

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    But didn't Obama spend Trillions this year? Wonder if that had something to do with the accelerated bankruptcy timeline.

    The asshat probably thinks he is going to walk away from this mess he has caused.
     
  6. Kozel

    Kozel

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    They did that last year with 1.5 trillions, maybe two or so but can they possibly keep doing that and with much bigger numbers?

    Seems like everybody in the world is now advocating creating alternatives to US$ and getting out of US$ already.
     
  7. faawrenchbndr

    faawrenchbndr CLM

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    Guess he shouldn't have given all that money to the mis-managed
    auto industry.
     
  8. paynter2

    paynter2 It ain't over Millennium Member

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    From a current version of a proprietary news letter:

    Second, China has overtaken the US as the world’s largest auto maker as 2009 auto sales jumped 46 percent to hit 13.6 million vehicles. By comparison, US auto sales slumped by 21 percent to 10.4 million,
    the worst result since 1982. The US has been the number one auto maker in the world for more than 100 years. Not any more. And China’s auto sales are still accelerating. The December 2009 figure was up 92
    percent on December 2008.

    Third, China has overtaken Germany and become the world’s largest exporter. Chinese December exports leaped 17.7 percent year-on-year, giving a total for 2009 of the equivalent of $US 1.20 TRILLION. Germany’s equivalent figures for 2009 were 816 Billion Euros or the equivalent of $US 1.17 TRILLION. The difference? China’s annual growth is still in double figures while the German economy officially contracted by 5.0 percent in 2009.

    William A. M. Buckler

    China has its own problems - too much lending, a housing bubble... But, they are growing, not contracting.
     
  9. Kozel

    Kozel

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    Debt to foreigners – 12+ trillions

    Unfunded liabilities – 60+ trillions

    Now. How do you pay that off if you only collect 2 trillions in taxes but spend 4 at the same time?

    Simply put: How do you pay off 70-80 trillions with -2 (negative two) trillions?

    This year it is –4 (negative four). That should make it even easier! Right?

    Numbers just do not add up. To me anyway. But then..... I am sure there are smart people out there who can explain this one away. Please! I just want to live my quiet happy life!
     
  10. Javelin

    Javelin Got Glock? Silver Member

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    That's pretty scary right there.

    My recommendation is to just go ahead and reconcile now and get it over with. The first loss is most often times the least loss and if we have a debt we need to pay it even if it is painful. Hopefully we will make it illegal for the folks in Washington to deficit spend. How the hell it is still legal for them to commit taxpayers to more expenses than they can afford every single year is beyond me.
     
  11. hatidua

    hatidua

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    it's what every politician does at the end of their term. It's probably why they all run for office in the first place: get rich (guaranteed), and after your term, you are paid for life, regardless of the mess caused.
     
  12. RonS

    RonS Millennium Member

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    Probably inevetable anyway, even if they had the income from passing the confiscitory taxes that were talked about from HCR, they would have wasted it anyway on porkbarrel vote buying.
     
  13. BobbyT

    BobbyT

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    Not passing the healthcare takeover won't be what pushes us into bankruptcy.

    As you pointed out yourself, the first 5 years are all the taxes and "fees" without benefits being paid out--because that's what it took to make the numbers look something close to breakeven over a decade (and even that is a joke).

    So 10 years of new taxes won't even cover 5 years of the spending. So as of year 6, they're burning through money twice as fast as they can tax it away. What happens in year 11?
     
  14. Little Joe

    Little Joe

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    And don't forget the $10 million dollar book deal for their memoirs.
     
  15. Kozel

    Kozel

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    Do not worry about year 11! How do you get through this year? With new revenue from “healthcare reform” it seemed to be somehow doable, maybe. Now.... I do not see it.
     
  16. Little Joe

    Little Joe

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    I wonder what life would be like if the government does go bankrupt. Would money in bank accounts become useless.
     
  17. rahrah12

    rahrah12

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    Maybe the banks that we bailed out and are now doing extremely well will bail us out...
     
  18. Kozel

    Kozel

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    I have seen it happen. To me it is not abstract theory but seemingly distant memory.

    I watched USSR fall apart. One day you wake up and there is no money! Banks are closed and your savings are gone. Currency on hand is worthless. Small amount was exchanged into new currency but it, it turn, crashed fast too.

    Every major transaction went to US$. Same thing happened in several countries where local currencies crashed.

    Now, when (not if) US$ collapses what will US go to? Euro? It will probably follow US$. Europe is in just as deep of a doo-doo as US if not deeper. Same with Japan and Yen. Without monetary system economy grinds to a complete hault.

    I think somebody will offer “Globo” of some sort and global control with it. Conspiracy theories aside it is just seems to be the most logical next step, the outcome of what is coming.
     
  19. MrGlock21

    MrGlock21

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    They don't claim to have found the trillions under the couch. They simply say that they have found it in the rooms where the printing machines are.
     
  20. Little Joe

    Little Joe

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    Definitely not good. It would really suck to escape that problem in the USSR only to have it happen again in your new home country.

    Guess I better buy a semi trailer full of toilet paper. :supergrin: It will be worth more in barter.

    We'll just have to see what happens.

    LJ