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On Mon, 21 Feb 2011 23:48:48 -0500, wrote:

On Mon, 21 Feb 2011 19:50:52 -0800, wrote:

On Mon, 21 Feb 2011 22:40:50 -0500, Wayne.B
wrote:

On Mon, 21 Feb 2011 21:30:13 -0500, wrote:

I am not sure how to penetrate the dream world you live in.

It's a faith based belief system. :-)

Actually I can tell you how it will get resolved. At some point
there will be no one willing to buy any more US debt. Interest rates
will skyrocket and the economic system as we now know it will grind to
a halt. Inflation will run rampant and social security checks will
become worthless pocket money. There will be massive rioting in the
big cities and shortages of just about everything. It will not be
pretty at all. I'm thinking about buying another sail boat or a farm
in the country somewhere.

Yes, that's a correct analysis. We're not particularly close to that
situation.

In more than a sense, any kind of economic system beyond simple
transactions is a faith-based system. That's the definition pretty
much of 'full faith and credit.'

Our debt problem is about as bad as it was at the end of WWII but this
time we are not the engine of production and the only industrialized
country in the world that wasn't blown to hell.

We're also the place where just about everyone turns to when there are
problems, financial or otherwise.

We don't really have the production capacity to dig our way out of
this mess right now. It surely won't come from an internal service
economy paying for 80 million retired people.
One day the government will stop lying to us and tell us we have to
cut our spending, just like Europe is doing now.
We also better find something we can make and sell to the world to
repatriate some of our money

"One day" Well, whatever. The sky isn't falling.