A Possible Scenario?

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MurrayPhillip
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Joined: Mon Mar 02, 2009 1:51 pm

A Possible Scenario?

Post by MurrayPhillip » Tue May 26, 2009 8:03 am

Anyone read this Ben Stein article in Sunday's NYT?

http://www.nytimes.com/2009/05/24/business/24every.html

Here is an excerpt: "By 2014, the federal government’s debt had reached $25 trillion, while the economy had shrunk to roughly $10 trillion in annual output (at 2006 prices). At that point, the Treasury began to announce that it would suspend payment of interest to foreigners on United States federal debt except by the issuance of so-called P.I.K., or payment-in-kind, notes of the Treasury. These were simply payments by promises instead of by money."

ziggy29
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Post by ziggy29 » Tue May 26, 2009 8:13 am

Why is he comparing debt in (presumably inflated) 2014 dollars with GDP in 2006 dollars? Seems a little disingenuous to me.

Either compare them in 2006 dollars or in 2014 dollars -- don't pick and choose for alarmist purposes.

mark500
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Joined: Sat Oct 11, 2008 8:37 am

Post by mark500 » Tue May 26, 2009 8:34 am

Ben Stein? You must be kidding. Who on earth cares what he thinks?

Look what Ben was saying before the crash of 2008 when the Dow was at 13,000. (at 6:22). I especially like the part where he said Merrill Lynch was priced as cheap as a cereal box toy. An "astonishingly well run company". Buy the financials! ROFL.
Of course, Peter Schiff was right in his prediction but wrong in how to invest for it. His clients sustained huge losses in their portfolios.

http://www.youtube.com/watch?v=2I0QN-FYkpw

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rwcox123
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Post by rwcox123 » Tue May 26, 2009 8:21 pm

I have an idea -- the Treasury could issue green pieces of paper instead of money, and print "Federal Reserve Note" on them, and could print a whole lot of them, and then that's what all the creditors would get.

Just like now, in other words.
Beyond all hope, set free to light.

walkinwood
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Location: Denver, CO

Post by walkinwood » Tue May 26, 2009 8:31 pm

I'd rather listen to more credible doomsters.

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