Here's my down payment on the debt.
Posted on 11/18/2005 11:40:48 AM PST by Robert Drobot
According to the Treasury Department, from 1776-2000, the first 224 years of U.S. history, 42 U.S. presidents borrowed a combined $1.01 trillion from foreign governments and financial institutions, but in the past four years alone, the Bush administration borrowed $1.05 trillion. ... "No American political leadership has ever willfully and deliberately mortgaged our country to foreign interests in the manner we have witnessed over the past four years," said Tanner. "If this recklessness is not stopped, I truly believe our economic freedom as American citizens is in great jeopardy." [CNSNews]
I wonder if there are any implications...
"The facts are not partisan, and they're not ideological," said David Walker, the nation's comptroller general. He should know. He's the nation's chief accountant and signs off on the government's balance sheet. America's fiscal future, he said, "is worse than advertised."
When the government next reports these numbers Dec. 15, the total is expected to reach $46 trillion to $50 trillion.
How much is $50 trillion? About $166,000 for each of the almost 300 million Americans. [Seatle Times]
American "wealth" is an illusion based on borrowed funds that will soon be cut off, followed by creditor claims. Are you ready to repay the $166,000 spent on your behalf?
I enter the value of a 1920 dollar in 2005 and it returns 10.50.
Then I enter the value of a 1930 dollar and I get 10.80.
Then 1945 and I get 10.50.
So, despite the Great Depression and the Second World War, there was not net inflation between 1920 and 1945.
Forgive me if I find that somewhat questionable.
"I wonder if they'd take out of state,two party post-dated checks"
I'd give it to 'em in gold if it meant real freedom..
manwiththehands,
I interpreted the $1T before and another $1T after 2000 to be only the portion borrowed from Foreign sources.
There is a lot of government debt held by Americans that would not figure into that.
Still, how they get from a total reported current National Debt of $8T to $46T-$50T owed is beyond me. If they mean that is what it will take to pay off the $8T plus additional interest while it is being paid off, then they would need to show an awful lot more details. What assumptions were made about when deficits would end and surplusses would begin ? What interest rates will the government have to pay on any additional borrowing beyond the $8T already on the books ? Etc.
It is disingenous to say every man, woman, and child owes $166K, when the total "payoff amount" as of today is only $8T. That $8T divided by 300M Americans is only $27K each if paid off today.
If nothing else changed except to hold government spending to today's level -- zero inflation increases allowed in spending while the economy grows at a net 3% -- then it would take less than 15 years the existing tax revenues to generate surplusses that would have completely paid off the $8T plus interest.
It isn't an unsurmountable problem, and Chicken Littles that run around screaming the sky is falling don't really contribute to a solution. People won't even look for solutions if they think the problem is insoluable.
In what year was the national debt at its lowest?
How much was it?
Ans: in 1835 the national debt was $33,733.05
Here's my down payment on the debt.
This image that China or Japan could just call in their debt is scaremongering. First the bonds they buy are redeemable at a certain time. They are 30 year or 10 year notes. Second, it it not the governments but individuals in those countries who are investing here. Why? Because we have a good record, regulated and transparent markets. Typically, someone is taking a sign of faith in America and trying to turn it against us.
If you'd like to claim that the treasury department is making up the numbers, you can take it up with them.
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The depression was a time of deflation. There have been many of these during the history of the United States. That's what makes the numbers look fairly whacky. Unending inflation is a relatively recent thing.
As long as I owe it to you I have'nt cheated you out of it....yet.
I thought we did that already with Washington bureaucrats.
"If I give them $166,000 do I get my Liberty back?"
AMEN!
Partly to me. I own many Savings Bonds.
"So, despite the Great Depression and the Second World War, there was not net inflation between 1920 and 1945."
1. What happens in a depression? (hint: it's the opposite of inflation, which is why it's called a "depression")
2. Price controls and rationing to avoid inflation took place during WWII.
For someone trying to tell the thread author he is short on facts, you seem to be painfully unaware of them.
Where the info from the calculator is from:
" The pre-1975 data are the Consumer Price Index statistics from Historical Statistics of the United States (USGPO, 1975). All data since then are from the annual Statistical Abstracts of the United States."
Check is in the mail, not!!!
What a distorted view of the world.
China, mostly. Doesn't that give you a warm fuzzy?
I don't know whether to be incredibly pleased at this idea or buy another batch of gold ingots.
I think I will do both.
Rebublicans control the house. They are just as responsibe.
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