A simple way to get consumers to borrow less and save more.

[Nick Gromicko]

Raise interest rates.

Borrowing would be more expensive & saving would pay better.

[Nick Gromicko]

This stuff is simple. I keep waiting for Obama to call me, but he hasn't yet.

[Michael Roberson]

Still too complex for a politician to understand.

How about...
No politicians get paid till our country is completly out of debt.

They might get that...

[kpierce]

Originally Posted by gromicko

Raise interest rates.

Borrowing would be more expensive & saving would pay better.

Didn't you just preach in another thread that no one should be saving and should be buying hard assets?

[Brian E. Kelly]

Being as I checked the closet where I keep my Nobel Prizes, I did not locate one for Economics, this is not my strongest area.

Nonetheless I will ask: what would happen to the US economy if we as a people started buying US Savings bonds or buying up the US Debt???

Is there a way the Government could mobilize we the people in such an effort??

[Jeffrey R. Jonas]

Originally Posted by bkelly2

Being as I checked the closet where I keep my Nobel Prizes, I did not locate one for Economics, this is not my strongest area.

Nonetheless I will ask: what would happen to the US economy if we as a people started buying US Savings bonds or buying up the US Debt???

Is there a way the Government could mobilize we the people in such an effort??

I don't think that would work for you, Brian... you're too dependant on "liquid assets"

[Doug Edwards, CMI]

Originally Posted by gromicko

Raise interest rates.

Borrowing would be more expensive & saving would pay better.

Even more amazing is that this is 10th grade Economics and yet none of the so called "experts" involved seem to know this.

[Brian E. Kelly]

Originally Posted by jjonas

I don't think that would work for you, Brian... you're too dependant on "liquid assets"

I am all jacked up on coffee right now.

But really, why can't we as the people buy down our own debt?????

[Stephen W. Stanczyk]

Originally Posted by bkelly2

But really, why can't we as the people buy down our own debt?????

I'm sure the Chinese would give us a great rate ...

[Brian E. Kelly]

No one knows the answer do they????

[Michael Larson]

Originally Posted by bkelly2

No one knows the answer do they????

Saving is great but if too high a savings rate will result in lower economic activity and a contracting economy.

We have cooked our own goose as we continue to ask others to fund our debt. The numbers are much worse than the chart below as it only shows through last September.




MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES THRU March 2009

Note the top line for China.
It has increased it's holdings of U.S. debt by 57% in just the last year.

[Blaine Wiley]

Why would any American want to buy any of our debt when the morons in the government refuse to stop spending?

Our 1.8 trillion dollar deficit this year is more than the 2000 fiscal budget.

We will soon find out the hard way that John Maynard Keynes economic theories were bogus.

[Frank M. Carrio, CMI]

Originally Posted by gromicko

Raise interest rates.

Borrowing would be more expensive & saving would pay better.

Hey Nick..... Make up my mind will you!

http://www.nachi.org/forum/f13/start...ets-now-40220/

[Brian E. Kelly]

Nice charts and rhetoric but no answer to my question yet.

[Michael Larson]

Originally Posted by bkelly2

Nice charts and rhetoric but no answer to my question yet.

I believe I did answer your question.

While I think it is good for Americans to save if they buy down our own debt it will contract the economy by leading to reduced consumption and the consequently reduced manufacturing and production and more job losses as the economy contracts and it spirals down from there.

Unless we demand the government stops spending on all our wants with money we don't have we are doomed to suffer a depression defined as a 10% contraction in the GDP year over year.

It may already be to late to fix the problem entirely but we certainly can reduce the suffering.