Another gm craptastrophe

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GoFaster

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Everyone who owns and keeps buying US government debt is financing this. Yes, China buys a lot, but if your retirement funds contain bond funds ... you are, too.

As for the future value of those so-called "fixed income" investments ... Let's just say that I know with great accuracy how much government debt (US or otherwise) that I own: 0.
 

dwfdiesel

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That's only on the actual money borrowed. remember they collect tax on all the product sold and income the workers make. That's just the first round usually it gets spent 7 times before it stops in the rich mans pocket.
 

LiLredTDI

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Everyone who owns and keeps buying US government debt is financing this. Yes, China buys a lot, but if your retirement funds contain bond funds ... you are, too.

As for the future value of those so-called "fixed income" investments ... Let's just say that I know with great accuracy how much government debt (US or otherwise) that I own: 0.
Care to elaborate?
 

mohawk69

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Richmond Hill, GA (Savannah)
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"That's just the first round usually it gets spent 7 times before it stops in the rich mans pocket"

I never knew much about economics. So..it stops there? He never invests or buys nice things with all that money? What a waste.
 

dwfdiesel

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Joined
Oct 17, 2011
Location
Muskoka Ontario Summer Lecanto FL winter
TDI
2006 Golf & 2012 Golf wagon, 1998 GMC 6.5 with 310,000km
"That's just the first round usually it gets spent 7 times before it stops in the rich mans pocket"

I never knew much about economics. So..it stops there? He never invests or buys nice things with all that money? What a waste.
Sure the rich man spends money. He just doesn't spend all of it like we do to just live. That's why he's rich he doesn't have to spend it all so it stays in his pocket.

The 7 spends is an estimate when you put new money into the system at the bottom of the spending cycle it gets spent on staples which everyone needs food, gas, clothes, rent etc. The people who sold you the staples also spend on stables etc each spending cycle some gets put away as profit or savings, so the estimate is each new dollar gets spent 7 times before it is used up or taken out of circulation in accumulated money ( money that sits in an account or offshore in a bank).

Now in contrast to that if the new money is injected at the top of the spending cycle it will only be spent once or twice before it is stored away into accounts which have little 2 way volume.

Of course all of this may or may not be your belief but makes sense to me.

And back on topic some of that money get spent on a VW and maybe even a Passat made in Tennesse which would create another at home spending cycle.
 
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