Unsustainable!:¬)

08/03/10

A few reasons why some sort of default is coming our way in the mean time your paper money will be devalued and the stock market boosted by the money 'printed' (i.e. not backed by increasing oil flows or scarcity limited commodities) to fill the gap by governments.

Unsustainable

'The non partisan agency said yesterday the deficit will remain above 4 percent of the nation’s gross domestic product for the foreseeable future...
Economists generally consider deficits topping 3 percent of GDP to be unsustainable because that means government debt is growing faster than the ability to pay back the money.'
http://www.businessinsider.com/cbo-obama-is-underestimating-his-deficits-by-12-trillion-2010-3

Unsustainable!

'"We don't have any loan demand right now," Beal said.

The credit union is investing in short-term Treasurys and earns about one-quarter of 1 percent on those government securities on average, but it was paying 0.4 percent to customers with savings.

In addition, the credit union expects the National Credit Union Administration to boost deposit insurance premiums by 0.15 percent to 0.4 percent this year.'
http://www.lvrj.com/business/credit-union--pul-lease-take-your-money-86320527.html

Unsustainable!!:¬)

'The deal would require each person to pay about US$135 a month for eight years — the equivalent of a quarter of an average four-member family’s salary.'
http://www.taipeitimes.com/News/front/archives/2010/03/08/2003467496

On the plus side I had a cracking long run yesterday in my VFF Flows, although still one of the infamous lazy unemployed;¬)