Posted on 05/22/2015 5:14:38 PM PDT by fhayek
Did you know that if you took every single penny away from everyone in the United States that it still would not be enough to pay off the national debt? Today, the debt of the federal government exceeds $145,000 per household, and it is getting worse with each passing year.
Many believe that if we paid it off a little bit at a time that we could eventually pay it all off, but as you will see below that isn’t going to work either.
It has been projected that “mandatory” federal spending on programs such as Social Security, Medicaid and Medicare plus interest on the national debt will exceed total federal revenue by the year 2025. That is before a single dollar is spent on the U.S. military, homeland security, paying federal workers or building any roads and bridges. So no, we aren’t going to be “paying down” our debt any time in the foreseeable future. And of course it isn’t just our 18 trillion dollar national debt that we need to be concerned about. Overall, Americans are a total of 58 trillion dollars in debt. 35 years ago, that number was sitting at just 4.3 trillion dollars. There is no way in the world that all of that debt can ever be repaid. The only thing that we can hope for now is for this debt bubble to last for as long as possible before it finally explodes.
It shocks many people to learn that our debt is far larger than the total amount of money in existence. So let’s take a few moments and go through some of the numbers.
(Excerpt) Read more at zerohedge.com ...
You need to really look at “How the money flows”
objectively.
From payroll/cap gains etc taxes, to the feds, they mandate and mark it up because they need to spend it and the states take the money because they are cowards.
There are at least three points in which we can cut out this criminal middle man.
Historical, Conservatives/Republicans have targeted the front end and have played lip service to the middle. Lower taxes and less regulations.
I am suggesting that we/conservatives target the back-end, the recipients of the funds. The States that agree to their endless mandates in order to get federal funds.
Toddster... I knew you would show up, what took you so long.
“Why would everybody pay off all their debt, all at the same time? Silly premise.”
The remark was to illustrate the point that our money is based on debt. I notice you don’t challenge that, because you can’t.
Under the current system money is created when someone goes into debt. As opposed to money being a receipt for something valuable. Like a piece of Gold or Silver. You know constitutional money.
“My point was that you see him as playing on our side.”
I don’t play chess, but I thought that was what you were getting at, lol!
The States need to say NO !!!
We will NOT adopt your “new” policy and we don’t want your money.
Matter of fact, we are going to roll back any number of your “brides” and reject those funds as well.
How would the states make up the loss of revenue? Would the voters stand for it? The voters pay federal taxes and you want them not to get any of the money back. The states are hooked on the funds like an addict. Look at the Rep governors who elected to expand Medicaid under Obamacare. They did it for the money.
Some states get more back in federal revenue than they pay in taxes.
The States respond to their voters who want these federal programs.
You don’t try and pay off the Debt which has built up over several centuries. .....you pay it off first producing surplus budgets. Year by year. It will take a while but it can be done....just not all at once.
The last time I read it, the total value of American assets was around $400 trillion including assets in the ground.
If we claim some gold asteroids we’ll be fine.
IMHO, it's almost exactly twenty years too late for your worries.
The second Clinton term made perpetual bubbles and increasing concentration of wealth inevitable and the only way to keep that going was to export successful industries and have the government concentrate and redistribute the unsuccessful ones by hook or by crook.
The Internet Bubble was good as was the Housing Bubble not to even mention the huge increase in interest everyone is paying on all their new debt. So, the right people made out and are making out just fine. The "invisible hand" and all that you know? Not like the majority of US history when we protected our own industry because we knew which orifice that "invisible hand" always ended up fisting.
But don't get down in the dumps, look at the bright side of things. If you home-school your little ones so they can actually read and write correct English, by the time abortion kills off another sixty million infants your grand kids will be highly valued as household servants for the wealthy.
JMHo
the US govt brings in $3 trillion annually.
the US govt owes $18.3 trillion ... SIX TIMES the annual revenue
The hundred thousand column on the debt clock is spinning like a gas pump at 3.99.
Bump for later reading.
1. The author of the article clearly has no idea of how our monetary system works.
2. The time-tested way to cut this debt down to manageable size is to allow inflation. This has worked at least since the time of the Roman Empire, and probably longer than that, I just haven’t looked at earlier periods.
3. The government talks about reducing inflation, but actually allows it to run pretty much unchecked. What what someone does, not what he says.
4. On a personal level, I have benefitted greatly from inflation. You can too. In all of your investing decisions keep asking the question what happens when inflation makes money worth less? Will this asset keep pace, or will it be left behind?
From our viewpoint, the view of the American people, we’re lucky we’re simply too big to fail. If a Greece failure is a big issue for Europe who in the world could afford to see us fail?
Not saying we can’t but if you look at the slack Greece has gotten what lengths will other nations go to in order to prevent us from failing?
Of course the other side is we may find out we’re too big to save. what a mess that would make for everyone.
<>What are we leaving them?<>
Misery.
The people of this country WANT THEIR GOODIES, and also WANT LOW TAXES from the government, so they elect people that will give them both. Obviously that cannot hold forever.
And don’t think it’s all Democrats. Talk about means-testing Social Security, EVEN HERE, and see what happens. People here will defend the right of Bill Gates to collect his full Social Security check until their dying breath.
At some point we’ll be forced to buckle. If I had to guess, the people demanding the goodies will win, as that transcends both parties - so taxes WILL GO UP to pay for the goodies. Most likely we’ll see a VAT and a gas tax increase of about $5.00 (possibly hidden through tolling). Put those two together and the feds take in at least another trillion dollars per year, and that just about balances things.
pfl
Or, they'll import more workers with the expectation they'll pay into the benefits we hope to collect. I think that may be the real reasoning behind the calls for amnesty (besides votes to whoever gets it passed).
“Or, they’ll import more workers with the expectation they’ll pay into the benefits we hope to collect. I think that may be the real reasoning behind the calls for amnesty (besides votes to whoever gets it passed).”
DEFINITELY true, although the votes will always go to Democrats if it does get through, regardless of which party leads the charge - that much is certain.
Everyone knows how money is created, without silly illustrations.
Under the current system money is created when someone goes into debt.
Technically, that's not true. If I buy something using a credit card, did I increase the money supply? If the Treasury sells $1 billion in bonds, did they increase the money supply? If the car dealership finances my purchase, did the money supply increase?
Like a piece of Gold or Silver. You know constitutional money.
FRNs aren't Constitutional?
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