[Rhodes22-list] Economics - More Good News

[Foy, Warren]

Brad,

Why is so much of the national debt held by China and why does the
Federal Government allow this to happen? (honest question, I don't
know).

You mentioned in a previous post yesterday the apparent good economic
news and rise of the S&P and workers 401k's.  Yes, I checked mine this
morning and all of the funds I am investing in are at record highs as
well as many of the individual companies I am invested in - I love it!
(for today): (maybe, as the current funds going into these funds are
purchasing fewer shares).

(I'll pause for L.Sailor (Elle) - Do I use too much punctuation?)

However, I remain concerned that because of political and terrorism
issues, the growth of the market is not sustainable.  I am young enough
(though not necessarily young, 47 with 20 or so years to retirement
(maybe them I can purchase a Rhodes 22)) that I feel that my 401k
retirement account can bridge more than one more significant market
corrections due to (political/terrorism/Mr. Market/ whatever).

I know I am rambling but my primary question (not necessarily to you but
to the list) is, why don't Americans absorb the national debt ourselves
rather than allow it to go to other countries?  Aren't we the wealthiest
nation the world?  I think that the simple answer is the lack of
confidence in the administrations, whether it was Bush, Clinton, Bush or
however far back you want to go, and a thought that the stock market
(whether American or International) will provide a better return, which
is probably (no definitely) true.

I my opinion, the typical American individual and companies view that a
potential lower overall return of investment in the United States of
America (via Saving Bonds or Treasury Bills), is super ceded by the
perception of a potential additional rate of return by investing in the
markets.  In short, I think that greed rules over national pride and
provision of national security.

Simi related question - Why do so many Americans look for ways to spend
money to save on taxes?  I know people who have effectively blown
thousands of dollars to keep from paying a couple of hundred in Federal
taxes?  (I do understand that it is potentially better for the overall
economy).

Sorry for the long rant, I've got work to do and I can't go sailing as
Rummy has my boat.  How is the boat Rummy?

Warren Foy



-----Original Message-----
From: rhodes22-list-bounces at rhodes22.org
[mailto:rhodes22-list-bounces at rhodes22.org] On Behalf Of Brad Haslett
Sent: Friday, July 13, 2007 3:22 PM
To: The Rhodes 22 mail list
Subject: Re: [Rhodes22-list] Economics - More Good News

Rob,

And the bad news is - much of that debt is held by China.

The good news is - much of that debt is held by China.

This is like "mutually assured destruction" with the Soviets but with
money
instead of nukes.  Speaking of bombs, if we could just stop the ticking
on
the SS IED waiting down the road, I'd be happy.

Brad

PS - I'm going back to work this afternoon, I have my own deficit and
debt
issues looming.

On 7/13/07, Rob Lowe <rlowe at vt.edu> wrote:
>
> Oh, I think Stan knows, but here goes anyway.
>
> The deficit is the yearly difference between spending and receipts.
The
> national debt is the sum of all the yearly deficits to date. The
national
> debt is approaching $7 trillion (yep, with a T).  Just think, your
> personal
> share is only about $30K, just short of the price of a new Rhodes.
>
> http://www.brillig.com/debt_clock/
>
> - rob
>
>
> ----- Original Message -----
> From: "stan" <stan at rhodes22.com>
> To: "The Rhodes 22 mail list" <rhodes22-list at rhodes22.org>
> Sent: Friday, July 13, 2007 2:52 PM
> Subject: Re: [Rhodes22-list] Economics - More Good News
>
>
> > help:  what is the difference between our national debt and our
national
> > deficit ?  And what are the comparison figures for the same years
for
> the
> > national debt ?
> >
> > capitalistic minds need to know
> >
> > ss
> >
> > ----- Original Message -----
> > From: "Brad Haslett" <flybrad at gmail.com>
> > To: "The Rhodes 22 mail list" <rhodes22-list at rhodes22.org>
> > Sent: Friday, July 13, 2007 2:45 PM
> > Subject: [Rhodes22-list] Economics - More Good News
> >
> >
> > > Yesterdays record S & P was indeed good news!  Anyone look at the
> > > performance of their 401K lately?  No one needs to explain to me
the
> > > fundamental weaknesses of the current economy, but by all
conventional
> > > yardsticks, things look good.  If we had some fiscal discipline
from
> the
> > > Congress and especially the White House, we could cut taxes again.
> Alas,
> > > that won't happen.  But the previous tax cuts and the robust
economy
> that
> > > has resulted has made significant reductions in our debt load.
> > >
> > > Total US Deficit
> > >
> > > 2004 - $413 billion
> > > 2005 - $318 billion
> > > 2006 - $248 billion
> > > 2007 - $205 billion
> > >
> > >
> > > US Deficit as a percentage of GNP
> > >
> > > 2004 - 3.6%
> > > 2005 - 2.6%
> > > 2006 - 1.9%
> > > 2007 - 1.5%
> > >
> > > I just love good economic news!
> > >
> > > Brad
> > > __________________________________________________
> > > Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
> >
> > __________________________________________________
> > Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>
>
> __________________________________________________
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