Quote:
Originally Posted by deltaguitar
So what will make our economy collapse? You guys make it hard to take anything you say serious when y'all start predicting collapse and failure.
The way I see it we could just balance the budget once the economy starts to grow and then as inflation weakens our dollar we will pay back the debt at a discounted rate.
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Here is the situation we are in but in family terms.
Let's say you and your family were doing alright. You weren't getting rich but you weren't starving either.
Then you discovered you could have more stuff by using credit.
All of a sudden... a nicer house. New cars. Life is good.
You eat at the nice restaurants and grill around the pool.
But all of this is on credit.
Then you start having trouble making the payments so you start making payments on your credit with more credit.
Things get tighter and tighter and you have finally reached the place where you can't pay your mortgage... you can't pay the minimum payment on your credit cards etc.
There comes a time that the house of cards starts tumbling down. There comes a time when the facade cannot be maintained any longer and it usually comes down catastrophically.
Usually... once it starts crumbling you lose it all... fast.
That is where we are as a nation.
We have lived on debt and paid debt with debt until our only real asset is our ability to borrow.
The facade cannot be maintained any longer.
The day of reckoning for a society built upon debt is coming. And soon.
http://www.youtube.com/watch?v=hn5EP9StlVA