Posted on 11/25/2011 6:05:49 PM PST by Clive
I know!
The only way America is going to pay her debt is with her ass, and that is all there is to it.
I am only going to say this. After the fall, if anything is going to rebuilt from the ashes of America, ANYONE who even MENTIONS any form of federal government should be lined...nevermind.
That’s not correct. In order for Canada to start paying down its debt by 1% per year, they first have to eliminate their defecit.
Consider this:
10% of today’s GDP is borrowed money. To just match government spending to what it currently takes in in tax revenue would remove 10% of GDP overnight.
Think about that for a moment.
Politicians have created a situation where if the borrowing stops the system crashes. So they pretend the borrowing can continue forever - and the truth is it can’t.
Congresscritters will move to tackle the national debt only when the costs of doing nothing costs more than the costs of doing something. The capital markets will have to squeeze an overleveraged Washinton into balancing its fiscal books.
No one expects any of that debt to be all paid back... its impossible even if it income was taxed at 100%, which you know no politician is going to push for it. The reality is global bankruptcy sounds pretty good. Its not pain free but paying back all the debt is not really an option.
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