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Old 05-14-2018, 08:18 PM
 
2,256 posts, read 1,400,072 times
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Quote:
Originally Posted by hitpausebutton2 View Post
Credit (aka Debt).. no way around it. You give me credit, but i am in DEBT to you. So in order to pay off the debt, I have to work. If I didnt take the credit, Then their is no need to work.
And if I use leverage to generate higher returns than the debt I owe?

The fastest way to achieving “surplus” is through intelligent usage of leverage.

Give me $1,500 of starting money in a game of Monopoly with a $5,000 line of credit versus the person staying out of debt and operating on a cash basis with only their original $1,500 and I’ll win every time.

Last edited by Thatsright19; 05-14-2018 at 08:29 PM..
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Old 05-14-2018, 10:05 PM
 
Location: Northern Maine
9,524 posts, read 14,317,996 times
Reputation: 9008
Maple47 says:
"I praise you for understanding that.
Next step is: who benefits from that tax?"

The nine private banks that constitute the Federal Reserve; two lies in one term. It isn't federal and there is no reserve.
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Old 05-14-2018, 11:04 PM
 
Location: Ohio
18,053 posts, read 13,270,918 times
Reputation: 13876
Quote:
Originally Posted by YuMart View Post
Obviously there is a lot of greed and corruption that hinders it, but do you think even if all of the politicians were great, honest, wholesome people, the U.S debt could ever be fully paid off? Or do you think we're too far gone and America will be destroyed before it could pay off 100% of its debt?

It's really mind boggling how much debt we are in yet we spend money worse than a teen girl who won the lottery. Uhh...Shouldn't you pay off all your debts BEFORE spending it on anything else?

You do realize that many foreign States, foreign banks, foreign companies and foreign investors are holding 30 year bonds, right?


They prefer holding those bonds, so why would they want to be paid off?


The federal debt really isn't a problem, until you reach a point where domestic or foreign investors aren't interested in purchasing treasury securities, or they are unable to purchase US debt, or until they demand repayment or begin selling off their treasury holdings.


The federal debt is only 1/4th World GDP, but will be 1/3rd by 2025, and 1/2 of World GDP by 2045.


As federal debt approaches 100% of World GDP, it will, of course, be nearly impossible for anyone to purchase US treasury securities, but that wouldn't happen until near the end of this Century.
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Old 05-15-2018, 09:14 AM
 
8,301 posts, read 3,469,221 times
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Quote:
Originally Posted by Mircea View Post

The federal debt is only 1/4th World GDP, but will be 1/3rd by 2025, and 1/2 of World GDP by 2045.

Where do you find this data?
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Old 05-15-2018, 09:52 AM
 
1,261 posts, read 1,183,188 times
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Centralized government in Washington is the problem. Bring all the decisions locally and you'll see the spending drop.
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Old 05-15-2018, 10:56 AM
 
2,360 posts, read 1,034,056 times
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Quote:
Originally Posted by Thatsright19 View Post
And if I use leverage to generate higher returns than the debt I owe?

The fastest way to achieving “surplus” is through intelligent usage of leverage.

Give me $1,500 of starting money in a game of Monopoly with a $5,000 line of credit versus the person staying out of debt and operating on a cash basis with only their original $1,500 and I’ll win every time.
If you touch the 5k, then that is something you have to pay back with interest. Person who is paying cash will be mindful of what they purchase that they dont have to pay back with interest and can save monthy payments. So how u win?
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Old 05-15-2018, 11:25 AM
 
8,301 posts, read 3,469,221 times
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Quote:
Originally Posted by hitpausebutton2 View Post
If you touch the 5k, then that is something you have to pay back with interest. Person who is paying cash will be mindful of what they purchase that they dont have to pay back with interest and can save monthy payments. So how u win?
If you can do it, you borrow at a low rate and invest the money with a high enough return to make the payments/pay off the loan + some profit. It is not so easy, and even harder to rinse and repeat long term.
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Old 05-15-2018, 12:47 PM
 
Location: In Miami but, Inside the Resistance !!
1,810 posts, read 490,782 times
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Quote:
Do you think America will ever be able to pay all of its debt?
Nope, but do not feel betrayed, because NO Country out there with a Debt like Ours, will EVER pay their debt either !!!!

By THEN we will all be ashes to ashes and the World will be in SHAMBLES.
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Old 05-15-2018, 03:17 PM
 
370 posts, read 151,068 times
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Quote:
Originally Posted by northern maine land man View Post
maple47 says:
"i praise you for understanding that.
Next step is: Who benefits from that tax?"

the nine private banks that constitute the federal reserve; two lies in one term. It isn't federal and there is no reserve.
bingo!
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Old 05-15-2018, 03:39 PM
 
874 posts, read 373,767 times
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The US government must make interest payments on the debt, and that’s covered by internal tax revenue. Now you know who really pays, especially when it’s bigger and bigger.
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