| Author | Message | ||
     Slaughter |
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| Panhead_dan |
It seems to me that if one simplifies the situation a bit, just to make it easier to understand, the U.S. debt is very fixable. The problem is the budgeting system. All government entities use the same system, basically. Fed, state, county, municipalities, schools etc. The way this system works is like this; the more you spend this year, the more you get next year. Now if all government entities were forced to adopt a budgeting system like we use in our households and like most small businesses use, there would be no debt problem and every man, woman and child in this country would be rolling in money. I have seen schools fill the dumpsters multiple times with books and again with canned food. Government entities have no sense of having to "earn" the money. Only that they need to flush a bunch of it down the toilet so they will get more next year. People in government positions that deal with fiscal matters will not even know that there is a problem with this system, it's that bad. Again, this is an over simplified rant but the principal is sound. | ||
| Ferris_von_bueller |
Reagan spoke of the debt being unsustainable back when it was in the billions. Now that it's in the trillions at what point does it actually become unsustainable? Seemingly, there is no limit to it. | ||
| Stirz007 |
...and who holds the note on much of our debt? ... and at what point do they decide to call in the loan? https://www.nationalpriorities.org/campaigns/us-fe deral-debt-who/ The interest on the debt is about 6% of the national budget - $230 Billion each year, and that includes nothing to pay down the principal. Not a good situation to be in..... | ||
| Reepicheep |
And so people understand how the manipulation happens, once you have the loan, you have the loan, and the lender can't do much besides make you pay it. But when you *need* another loan, even a small one relative to what you have already borrowed, that's where they can demand literally anything, both above and below the table. So it's fine for a long time, because you are a good risk. Then, all of a sudden, like over a weekend all of a sudden, everyone decides your risk is too high, and they start demanding a lot for the next loan. And you are, at that point, utterly and completely dependent on getting that next loan. Even though it may be small, without it, your whole house of cards falls down. So you do anything for it. In other words, when it happens, it happens really fast. Look at Greece for the tip of the iceburg. That's just a hint of a major country crashing, because it just hurts them. If one of the big countries go, it starts a death spiral of damage the other countries probably can't handle either. We need laws that require we publish the simple math, publish simple transparency, and it should be illegal to borrow from a future generation outside of a declared war. | ||
| Henshao |
Money Is A Lie | ||
| Cityxslicker |
Those of you that liked the 2007/8, are going to LOVE the next one. The one that arises when the unfunded liabilities in housing ( which they NEVER quit doing toxic asset bundling ), autos, education and health all fall at the same time. Look for it riiiiiight about 'election' time. I know warned ya, get out now while st the liquid is good. | ||
| Ferris_von_bueller |
I see office and warehouse space being built with no tenants. Get out to where? Only solution I can see is go become a mountain man and live off the land. | ||
| Two_seasons |
that is $230 billion/yr without significant interest. wait until interest climbs to 5% or more, then it will be $1 trillion/year just paying the nut on the interest. when jimmy left office, the national debt was at $1 trillion. repubs have added 9.3 to the total since reagan. repubs preach fiscal responsibility, but are just as bad as the dems. ryan and co. just gave o another $4.1 trillion. this all falls back to "we the people". we allow this via professional, career pols. time for term limits, even at scotus. this great nation of ours was never formed so they, the political class, could carve out for the donors giving the "best" donations, most from the lobbyists. they are all pigs at the trough. time will come soon enough to again water that tree of liberty that Jefferson talked about. | ||
| Alfau |
Bought and paid for by the People's Republic of the China. The USA is now controlled by Premier of the State Council of China, Li Keqiang. Until you pay your loans back. https://en.wikipedia.org/wiki/Premier_of_the_Peopl e's_Republic_of_China | ||
| Xdigitalx |
Don't worry, Trump will figure out a way to reduce that debt. Or else... we can default. |
