Posted on 01/20/2020 10:20:49 AM PST by Tolerance Sucks Rocks
We didn't have the economy we have now in the mid 2010s. With the economy doing the best it's done in decades we should be paying down debt, not running it up to the tune of a trillion dollars a year or more. If the economy goes into a downturn you could see that deficit double or triple.
The deficit is a major threat to American prosperity in the long term. Democrats and their Socialist handlers are an immediate danger to the survival of the United States as a free country. As much as I want the budget cut and balanced, that has to be deferred until our safety from these minions of pure evil is secured.
Brother I’m with you.
It’s all fiscal insanity.
What I don’t get it that Japan is operating at 200 percent plus debt to GDP while we’re “only’ at 100.
When does it really start to destroy a country?
300 percent? 400 percent?
Invest in Vangaard's TIPS fund. Treasury Inflation-Protected Securities. VAIPX and VIPSX.
True, that.
Well, the South China Morning Post says China’s debt to GDP is 300 percent.
So, the 3 largest economies all have debt to GDP ratio in the 3 digits. But it looks like we, the #1 economy in terms of GDP us relatively better than #2 abd #3 in terms of debt.
That’s an extremely good question.
I’m no expert, but, I’d think that other factors would be GDP growth, the amount of private debt, the amount of debt going to “investments” (actual useful infrastructure), etc.), and, debt to assets ratio. Other FReepers may think of more factors.
365% TCMDO to GDP is when we reach the tipping point. We went there in 2007/2008. The PIIGS all hit it around the same time.
The problem is Congress. I seem to recall the swamp that is the GOP refused right from the start to hand Trump a credible budget. In fact to get his signature corporate tax cuts he had to compromise with the swill they gave him. They might have his back now, but they are still the swamp, who didn’t even have an Obama care repeal ready. They couldn’t even manage to defund Planned Parenthood when they had the chance. Theses guys are slaves to the status quo and in some senses marginally better than Democrats. Trump has had to drag their sorry asses across the finish line time and time again.
Thing is betting against the United States is hazardous.
I was curious about Japan so looked at some graphs. Since 1995 US per capita GDP has gone up from $40,000 to $60,000. Japan has stayed the SAME at around $38,000! The debt might not be solely to blame, but PER CAPITA takes into account Japan’s population loss, so its a bad number.
The entire government resigns. All debts cancelled. New governments form. It’s the only way now.
Re: “What I don’t get is that Japan is operating at 200 percent plus debt to GDP while we’re “only’ at 100.”
One factor is that Japan has a (relatively) higher savings rate, and a majority of people “invest” most or all of their savings in Japanese sovereign bonds.
Do you know what the interest rate on the Japanese 10 Year Bond is paying?
(Minus!) -0.006%
In other words, a majority of Japanese “savers” absorb the entire inflation rate (less than 1%), and they PAY the Japanese government a tiny percentage to hold their money!
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