$14+T National Debt - Will it ever go down?

[burrocrat]

hey any of you got a favorite downhill run? you know when you commit to the ride, try to beat your best distance, without using the gas and only sometimes the brakes? just man and machine and gravity and the ride?

i got three of them.

 

[RealMoneyIssues]

well the good thing about mountains is that it's mostly downhill on the other side.

Unless your trying to go THROUGH it...

 

[burrocrat]

NO

That thing your squinting your eyes to see in the distance is a huge mountain, and were headed straight for it....hold on!

well the good thing about mountains is that it's mostly downhill on the other side.

 

[KevinD]

"You can always count on Americans to do the right thing - after they've tried everything else." Winston Churchill

 

[Afishegg]

i think it might happen right after hungry folks start beating each other with rocks and sticks for food.

we've got it better than most here but that might change. it's just a wreck in slow motion now, is anyone going to take the wheel and turn this thing around.

rant over.

NO

That thing your squinting your eyes to see in the distance is a huge mountain, and were headed straight for it....hold on!

 

[burrocrat]

At some point don't you have to reset back to zero and start fresh? I'm not sure when all this will happen, but I do think there is a good possibility of this happening.

i think it might happen right after hungry folks start beating each other with rocks and sticks for food.

we've got it better than most here but that might change. it's just a wreck in slow motion now, is anyone going to take the wheel and turn this thing around.

rant over.

 

[jpcavin]

Ok, for argument sake.

-Our Debt continues to increase over the next 10 years.
-50% (or more) of our tax revenues go towards paying the interest (more if the trend continues)
-We can no longer afford SS, Medicare, Defense etc......

Is is logical to think at some point we will have to default on our debt.
The fallout:
1. The interest on our debt will increase because of the default which will require more and more tax income to pay this interest.
2. A Global economic meltdown everywhere.
3. The U.S. dollar will be worth a very small fraction of it current worth (although it's declining now fairly well).
4. The dust settles. Possibly over several years.
5. Food famine around the world.
6. Food famine leads to larger unrest and war around the world.

At some point don't you have to reset back to zero and start fresh?
I'm not sure when all this will happen, but I do think there is a good possibility of this happening.

What happens after the reset to zero?
It's a scary thought, but $14+ Trillion.... come on, really! That's a lot of zeros.

Heck, it might be better to just get on with it and crash the global economy now and get it over with so at least our younger children and grandchildren have a fighting chance.

Thanks for reading my rant.
Bryan

The current debt is unsustainable. As the US becomes more indebted, foreigners will shy away from US debt. The US will have to print more money to buy this debt. This will devalue the dollar and cause inflation. When inflation goes up and the value of the dollar goes down, interest rates will go up. Not good, but not the end of the world. Who knows, maybe China or India will be the next super power.

 

[ExtremeWX]

Ok, for argument sake.

-Our Debt continues to increase over the next 10 years.
-50% (or more) of our tax revenues go towards paying the interest (more if the trend continues)
-We can no longer afford SS, Medicare, Defense etc......

Is is logical to think at some point we will have to default on our debt.
The fallout:
1. The interest on our debt will increase because of the default which will require more and more tax income to pay this interest.
2. A Global economic meltdown everywhere.
3. The U.S. dollar will be worth a very small fraction of it current worth (although it's declining now fairly well).
4. The dust settles. Possibly over several years.
5. Food famine around the world.
6. Food famine leads to larger unrest and war around the world.

At some point don't you have to reset back to zero and start fresh?
I'm not sure when all this will happen, but I do think there is a good possibility of this happening.

What happens after the reset to zero?
It's a scary thought, but $14+ Trillion.... come on, really! That's a lot of zeros.

Heck, it might be better to just get on with it and crash the global economy now and get it over with so at least our younger children and grandchildren have a fighting chance.

Thanks for reading my rant.
Bryan

 

[Afishegg]

NO!

and.... Not only will it NOT go down, it will continue to soar like an eagle in the sky.

We have a problem in this country, a moral problem. We continue to spend like a drunkard, and bomb everyone to smithereens who we dislike, and here in our own land we accuse teachers ..yeah thats right TEACHERS!?!?!?!, of being behind the ills of our financial problems! as the youth would say today. . . WTF!

we . are . doomed..... by our own stupidity!

 

[grandma]

Thomas Sowell column in yesterday's paper -
http://tinyurl.com/48bo3gq

Economists are often asked to predict what the economy is going to do. But economic predictions require predicting what politicians are going to do-- and nothing is more unpredictable.

When the Federal Reserve cites statistics to claim that there is not much evidence of inflation, we need to keep in mind that the statistics they rely on exclude food and energy prices. The cost of living is no sweat if you can do without electricity and food.

 

[Show-me]

Fuel Air Explosives. MOAB, mass production.

 

[law87]

Here's a nugget. The countries of the world have 21 aircraft carriers and the USA has 11. We have 5 X more aircraft carriers than any county in the world. lol We could moth ball 5 or 6 and save a ton of money on operating budget and tinder craft.

We have a $515.4 billion, that's half a trillion, military budget Canada has a $19.5 billion military budget. Why? Are we suckers or what?

http://www.globalfirepower.com/countries-comparison-detail.asp

we dont have the largest army, we better control the air and sea LOL canada have a military? lol

 

[Show-me]

Here's a nugget. The countries of the world have 21 aircraft carriers and the USA has 11. We have 5 X more aircraft carriers than any county in the world. lol We could moth ball 5 or 6 and save a ton of money on operating budget and tinder craft.

We have a $515.4 billion, that's half a trillion, military budget Canada has a $19.5 billion military budget. Why? Are we suckers or what?

http://www.globalfirepower.com/countries-comparison-detail.asp

 

[RealMoneyIssues]

We've (we Americans, that is) got to where we put about $75 Billion toward the debt every month for thirty years to pay this off.

That is after we streamline or expenses to a balance of revenue.

Not much chance of doing that voluntarily.


But, who cares about voluntary action...

Soon, the Bond Vigilantes with define our actions

My budget is balanced (wish our country's was), so I guess I can liquidate all my assets and put towards that $75b... oh, wait... I could only account for 8.67x10-4% towards that absolutely huge number :nuts:

 

[Boghie]

We've (we Americans, that is) got to where we put about $75 Billion toward the debt every month for thirty years to pay this off.

That is after we streamline or expenses to a balance of revenue.

Not much chance of doing that voluntarily.


But, who cares about voluntary action...

Soon, the Bond Vigilantes with define our actions

 

[RealMoneyIssues]

Until we as a public are willing to take a hit to our entitlement mind-set, we are not going to turn any corners. Don't quote my numbers, but it is hard to make a change if it appears that over 50% of the voting public is getting money from the government.

I mean, why try to survive on your own (live within your budget, get a job, etc) if the government hunts you down to give you money?

Just a question...

 

[Show-me]

You sir, are smarter than the average voter.

 

[ExtremeWX]

Ok, if we are $14+T in debt and are currently running a $1.5T annual deficit, will this madness ever end?

Let's say by some miracle of bipartisanship, we balance our annual budget and even carry a $1 billion dollar surplus.... it would take 14,000 years to pay off our debt.

From my perspective, getting a balanced budget anytime soon (next 5-10 years) is next to impossible. Too much special interest dipping their hands into the pot. Heck, congress is bickering over 6 - 50 billion in current year cutbacks... (.4% -3.3% of our annual deficit). That is less than a fraction of a drop of sweat off a gnats ass. It sounds like a lot of money, but when put into perspective, it's nothing.

So this begs the question... what will America look like in 10 years? Our interest alone on this debt will eat a majority of our collected taxes in 10 years. America is on a fast train to a total disaster.

I know this has been hammered around for a while, but to realistically look at that large of a number is mind boggling.
Cheers,
Bryan