Posted on 04/23/2016 9:18:03 AM PDT by expat_panama
Since this is an election year, you’re hearing a lot about the size of the national debt — and the financial imperative to expunge it before it gets passed on to our kids and grandkids.
Donald Trump ... ...suggested earlier that it would be possible to pay off the entire national debt in about eight years...
...the only way to advance the debate is to get past the myths...
#1) The federal government’s books are not like a family’s finances
...put yourself in the position of the government. Say you earn the typical American family income, and you spend and borrow as the government does... ...The Federal government does not have a literal ticking clock to race against.
#2) Even if government finances were like a family’s checkbook, things aren’t at a boiling point — yet.
At the very least, you probably want your elected representatives in Washington to spend within their means...
...What matters to families isn’t their total debt; it’s their ability to service those obligations.
Typically, families seeking a mortgage...
#3) American households aren’t just victims of the national debt — we’re benefiting from it too.
By most accounts, the U.S. debt stands at nearly $19 trillion. But in his Time article, Grant points out that some of this money is owed by the Treasury to other parts of the federal government...
#4) There are some unintended consequences to lowering the debt.
...the balance sheets of corporations and individuals have improved significantly... ...it’s preferable to have rising government debt and private-sector surpluses than the other way around... ...With fewer Treasury bonds floating around, it would be harder for investors ...
#5) Even if the debt isn’t at crisis levels, it is an important issue.
...“excess inflation” and a bond market in turmoil aren’t exactly minor concerns...
(Excerpt) Read more at time.com ...
One big fact everybody should know is that the Fed has been sweeping this debt under the rug so it has no market effect, much as they did with all the debt after WWII that eventually led to all the inflation we had in the 1970’s.
Based on human nature, it’s impossible.
Never fear...update...
Trump walks back pledge to eliminate debt in a decade
Gabby Morrongiello @ Washington Examiner excerpt
4/22/16 4:10 PM
You have said you plan to pay off the country’s debt in 10 years. How is that possible?” a reporter for Fortune Magazine asked the Republican presidential front-runner in an interview published Friday.
“No, I didn’t say 10 years,” Trump said. He then suggested that instead of paying it all off, he would pay off an unspecified “percentage” of the national debt as president.
“It depends on how aggressive you want to be,” he said. “I’d rather not be so aggressive. Don’t forget: We have to rebuild the infrastructure of our country. We have to rebuild our military, which is being decimated by bad decisions. We have to do a lot of things.”
“We have to reduce our debt, and the best thing we have going now is that interest rates are so low that lots of good things can be done that aren’t being done, amazingly,” he said.
Trump also suggested that a big part of the answer to the debt is how it’s financed.
“First of all, with low interest rates, you can think in terms of refinancing, and get it down,” he said. “I believe you can do certain things to pay off the debt more quickly. The most important thing is to make sure the economy stays strong. You can do it in smaller chunks. You can do it in larger chunks. And you can do it in refinancings.”
Just wait for the interest rate to rise on that balance, the government of the USA will not be able to pay for anything else.
Yes I’d say virtually impossible, politically impossible, etc. But with the will there’s a way. Even reversing the trend would do wonders.
There national debt hasn’t decreased (indicating a balanced or surplus budget) on a fiscal-year basis since the Eisenhower administration.
Speaking of the national debt, consider the following from a related thread ...
Once again, it’s time for "Federal Government Annual Budget 101,” the constitutionally limited power federal government's annual budget as the Founding States had intended for the budget to be understood.
Note that a previous generation of state sovereignty-respecting justices had clarified that Congress is prohibited from appropriating taxes in the name of state power issues, essentially any issue that Congress cannot justify under its constitutional Article I, Section 8-limited powers. This is evidenced by the excerpt below.
"Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” —Justice John Marshall, Gibbons v. Ogden, 1824.
In fact, based on the Court’s statement above, here is a rough estimate of how much taxpayers should be paying Congress annually to perform its Section 8-limited power duties.
Given that the plurality of clauses in Section 8 deal with defense, and given that the Department of Defense budget for 2015 was $500+ billion, I will generously round up the $500+ billion figure to $1 trillion (but probably much less) as the annual price tag of the federal government to the taxpayers.
In other words, the corrupt media, including Obama guard dog Fx Noise, should not be reporting multi-trillion dollar annual federal budgets without mentioning the Supreme Court’s clarification of Congress’s limited power to appropriate taxes in budget discussions.
Remember in November!
When patriots elect Trump, or whatever conservative they elect, they need to also elect a new, state sovereignty-respecting Congress that will work within its Section 8-limited powers to support the new president, including putting a stop to unconstitutional federal taxes.
Also consider that such a Congress would probably be willing to fire state sovereignty-ignoring activist justices.
We really don't know that.
What we do know is that he says all kinds of really stupid things while he's campaigning and his followers just love it. Makes sense because his goal is to get votes and conforming to reality is simply not necessary. Once he's elected he can still wave his arms and yell stupid stuff, but as far as puting ideas in writing and doing things he'll need to be a lot more careful.
My issue is w/ all the freepers who should know better than to take a lot of that B$ seriously and can't see it for what it is..
Historically most nations go into a death spiral once they hit 40% of the budget being debt payments. Which is why I think the only way out is default.
I will refuse to pay it - only if they show my money goes to our military, our police and fire, our transporation, our schools, water, the basics. I will hide my money from them, and a lot of us are not so stupid not to know how. I hate the leftists in government, I will rebel. We will create our own money if we have to, our own cars, insurance pools, our own guns, et all, in our secret factories and garages. We will pool together.
OUR OWN “Enclaves”!
Trump quoted in an interview w/ Morrongiello Apr. 22 Q: You have said you plan to pay off the country’s debt in 10 years...." A: “No, I didn’t say 10 years,” [pay off an unspecified] “percentage”
Whoa quite a switch. My problem here is that nobody has an actual video of him saying any of this, and these pundits have a really bad habit of making up phony quotes.
From a trillion per year.
Even the hated GWB didn't add a cool trillion per year to the Debt during his "awful" Presidency.
Your friend is a stupe.
Ah...Well...errrrr...I'll get back to you on legitimacy.
Now you’re getting the new modern “responsible people in charge” method for running a major world economy. Me, I’ve got a farm. At least I’ll be able to eat.
Even if the deficit decreases to one hundred dollars a year there is still a deficit so how could he believe that the annual deficit and the debt are both decreasing at the same time? You have to have an annual operating surplus before the total debt can decrease. As long as an annual deficit exists the total debt is increasing no matter whether the deficit is increasing or decreasing unless somehow part of the debt is forgiven or paid by a third party.
A lot of Conservative “Free Traders” tell us trade deficits don’t matter either. Birds of a feather.
Not many people understand that.
I watched my Grandpa and father both pay for NEW cars with cash. I have never, will never, pay $30,000 cash for a new car. Hell, I have to finance used cars.
The USA imports $2.7 Trillion of goods and services every year. A moderate 20% import tariff eliminates the deficit tomorrow.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.