Obama announces U.S. debt, deficit deal

The deal means that the US will borrow another $2 trillion in the next two years while reducing expenditure by $2 trillion over a decade. However, this does not mean that borrowings will somehow cease by 2013 – that part the US government remains silent.
According to the deal there will be savings of $200 billion per year up to 2021, but over the same period of time the US will borrow $10 trillion to maintain its lifestyle.
The US has to borrow money to pay for pensions etc and to meet its current interest payments on moneys already borrowed – hello, does anyone see a problem here?
The only people that will gain are the rich while the average person will end up holding the bill to pay back the debt. Now tell me how the US will prosper with this strategy?

U.S. President Barack Obama and congress leaders agreed to cut $1 trillion from federal government deficit spending and more than $2 trillion over 10 years.

B92

Which by any account won't have any effect on US debt.In fact the debt itself could double in the next ten years.It suffices to say that during the last audit of the federal reserve it was discovered that between Dec-2007 and Jul-2010 they created $16 TRILLION dollars from thin air to give to banks around the world.

If the United States isn't technically bankrupt then it soon will be. Not only is the Federal budget deficit an issue, there is also the crisis at state and city level with many individual states teetering on the brink of insovlency.

Face it, the Anglo-American model of an economy dominated by finance and kept going by increasing globs of debt, with growth subject to diminishing returns, is finished.

To be replaced by what, the barter system? Maybe where you are, but you'll find that to build a hospital or an airport requires financial mechanisms than bringing along your spare cabbages and seeing what you can swap them for.

Having said that, I was never a great fan of the capitalist system so, if you can, please do prove me wrong.
(The Brit, 1 August 2011 18:14

This is not what I meant Einstein.My point is that the core of US and UK economies is not manufacturing(making products)but finance(ponzi system).

The latest financial crisis in US and UK was caused by Deregulation of financial sector faciliated by politicians,Fractional reserve banking,
Trillions in Derivative gambling and speculation rediculously leveraging the markets and indexs making them unstable,Lending to people who did not have a good credit rating(Northern Rock)etc.

Your economy is failing because there has been no attempt by any politicans to fix any of these problems becasue they are in bed with the people that caused the problem in the first place.

But you shouldn't worry.You are in Osborne's safe hands.Bank bonuses are above pre-crisis levels and Tax avoidance is entirely legal.

Face it, the Anglo-American model of an economy dominated by finance and kept going by increasing globs of debt, with growth subject to diminishing returns, is finished.
(Leonidas, 1 August 2011 13:33)

To be replaced by what, the barter system? Maybe where you are, but you'll find that to build a hospital or an airport requires financial mechanisms than bringing along your spare cabbages and seeing what you can swap them for.

Having said that, I was never a great fan of the capitalist system so, if you can, please do prove me wrong.

To be replaced by what, the barter system? Maybe where you are, but you'll find that to build a hospital or an airport requires financial mechanisms than bringing along your spare cabbages and seeing what you can swap them for.

Having said that, I was never a great fan of the capitalist system so, if you can, please do prove me wrong.
(The Brit, 1 August 2011 18:14

This is not what I meant Einstein.My point is that the core of US and UK economies is not manufacturing(making products)but finance(ponzi system).

The latest financial crisis in US and UK was caused by Deregulation of financial sector faciliated by politicians,Fractional reserve banking,
Trillions in Derivative gambling and speculation rediculously leveraging the markets and indexs making them unstable,Lending to people who did not have a good credit rating(Northern Rock)etc.

Your economy is failing because there has been no attempt by any politicans to fix any of these problems becasue they are in bed with the people that caused the problem in the first place.

But you shouldn't worry.You are in Osborne's safe hands.Bank bonuses are above pre-crisis levels and Tax avoidance is entirely legal.

The deal means that the US will borrow another $2 trillion in the next two years while reducing expenditure by $2 trillion over a decade. However, this does not mean that borrowings will somehow cease by 2013 – that part the US government remains silent.
According to the deal there will be savings of $200 billion per year up to 2021, but over the same period of time the US will borrow $10 trillion to maintain its lifestyle.
The US has to borrow money to pay for pensions etc and to meet its current interest payments on moneys already borrowed – hello, does anyone see a problem here?
The only people that will gain are the rich while the average person will end up holding the bill to pay back the debt. Now tell me how the US will prosper with this strategy?

U.S. President Barack Obama and congress leaders agreed to cut $1 trillion from federal government deficit spending and more than $2 trillion over 10 years.

B92

Which by any account won't have any effect on US debt.In fact the debt itself could double in the next ten years.It suffices to say that during the last audit of the federal reserve it was discovered that between Dec-2007 and Jul-2010 they created $16 TRILLION dollars from thin air to give to banks around the world.

If the United States isn't technically bankrupt then it soon will be. Not only is the Federal budget deficit an issue, there is also the crisis at state and city level with many individual states teetering on the brink of insovlency.

Face it, the Anglo-American model of an economy dominated by finance and kept going by increasing globs of debt, with growth subject to diminishing returns, is finished.

Face it, the Anglo-American model of an economy dominated by finance and kept going by increasing globs of debt, with growth subject to diminishing returns, is finished.
(Leonidas, 1 August 2011 13:33)

To be replaced by what, the barter system? Maybe where you are, but you'll find that to build a hospital or an airport requires financial mechanisms than bringing along your spare cabbages and seeing what you can swap them for.

Having said that, I was never a great fan of the capitalist system so, if you can, please do prove me wrong.