Posted on 02/26/2010 12:22:23 PM PST by GeronL
Our debt will soon equal the GDP. How could we possibly pay it off without huge spending cuts? Increasing taxes significantly will not work, I think we all know the harm that will do. Something is going to have to give.
This country is endangered by its very own lifestyle of pawning everything off to the future. Well, the future is arriving. I don't think it will hold off for a lot longer.
China and other countries are already getting very nervous about buying our debt at the same time we are producing more debt than ever before. Has the government pressured US banks into buying debt that foreign countries won't buy? Is that one of the reasons why lending has fallen off?
Will those banks have anything but worthless bonds if the US "defaults"?
I have huge doubts that even a GOP Congress will make big spending cuts. Will they defund Planned Parenthood? NPR? ACORN? etc etc. Will they trim entitlement programs? Will they lower the income level to get those entitlements?
I really doubt they would and no way Obama signs it.
They might think they can get away with the sham for a "little while longer" by padding GDP numbers with government debt spending but how long will that work?
What if Japan, China and other creditor nations just announce they will buy no more debt unless the terms are changed to protect them from a default or from the US trying to inflate its way out.
Obviously the US could never agree to such terms. The refusal will be seen as a sign that the US really will inflate its way out or default.
That would start a global panic, wouldn't it?
Let us hope that never happens.
You can say that 3 times. I think your on the money.
Matching shoes would usher in Armageddon.
I agree, people just haven’t admitted it yet
Who is Lori?
Server slowdown is a Rosie O’Donnell ain’t it?
lol. yes, those posts are dragging the economy down. heh
Soon the whole country looks like the ghetto with dollar stores, pawn shops and liquor stores and everything else boarded up
More likely, they would have done that already, but of course not for the natives, but for “special” bonds that they didn’t bother informing the electorate about?
Hm, so should I keep an eye on interest rates? ;)
Sure the reality is people can’t handle the truth and the truth is we are broke and things are spiraling downward and talking about it won’t make it worse but not talking about it is.
Heyup.
I am just not sure it can be stopped.
I know, I was just being sarcastic.
I think people should know whats coming. I totally support those posts.
Which would be exactly how he would react which would be his reaction.
Its an easy fix...cramming down the throats of the fools in the house and senate is another matter entirely.
FairTax
O Cap Gains taxes
eliminate the death tax
age/means test SS and Medicare
Border Patrol/immigration law enforcement
reinstate glass-segall
ban investment bankers from the Treasury Dept
.....
And I think that is exactly what the msm did to the economy in their quest to keep the Republicans out of power '06 and '08. While again, not by itself able to stall the economy, but added to other problems already existing, made the situation far worse.
Well, Sweden is a small country that doesn’t have the amount of people we have on the rolls, plus our country is bigger and much more people literally flooding in.Tax illegals and they go away. Our GDP per capita is still huge compared to the rest of the world. The US's problem is that it spends like a drunken sailor and doesn't invest in anything sustainable.
The US is the night club in goodfellas, you suck out all you can... then you torch the place. That's *exactly* what is happening now. The US is being sucked dry, the torching will come later.
more ideas ... right now interest is about 10% of total federal revenues ... $230 billion of $2.3 trillion
The world economy will soon recover independently of the US, as most developing countries are not facing the problems that we have. When that happens, foreign government bonds will see their interest rates return to a normal level and US Treasury notes will have to return to 4% to 5%.
5% of $15 trillion debt (FY2011) is $750 billion, which could be 25% of revenues if revenues reach $3 trillion.
As interest eats up more and more of revenues, Some of the DEM party will be faced with the reality of cutting domestic spending, defense spending, entitlements because interest most definitely is non-discretionary.
We never got our balanced budget amendment passed by the Gingrich House. Maybe in the future. Much damage will be done by the time we get there.
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