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So you are saying there is no such thing as too much debt or deficit?
I have a feeling that you are in a very minority position.
I did not say there is no such thing as too much debt.
Debt is not a problem right now b/c of low yields on both short and long term treasuries. Obama should borrow as much as it takes until the economy grows again.
When the economy starts growing again, rates must go up b/c of inflationary pressures (which leads to higher yields and interest pyaments). At that point, borrowing becomes a problem. Then Obama needs to cut back.
Anyone who understands the equation, GDP = C + G + I + (X-M), and knows how interest rates affect treasuries will understand this.
Last edited by Bostonian123; 04-02-2011 at 04:13 PM..
I did not say there is no such thing as too much debt.
Debt is not a problem right now b/c of low yields on both short and long term treasuries. Obama should borrow as much as it takes until the economy grows again.
When the economy starts growing again, rates must go up b/c of inflationary pressures (which leads to higher yields and interest pyaments). At that point, borrowing becomes a problem. Then Obama needs to cut back.
Anyone who understands the equation, GDP = C + G + I + (X-M), and knows how interest rates affect treasuries will understand this.
I've asked you a couple times now how much debt or deficit is too much and I am being told we are in a recovery true or false?
I've asked you a couple times now how much debt or deficit is too much and I am being told we are in a recovery true or false?
OK I'll bite. The total size of the debt or deficit doesn't really matter since it must be compared to the total size of the economy. I'll give you a number anyway since you want one.
999 trillion dollar national debt is too much but anything less than that is okay. We're not even close to that number.
The economy has stabilized but we are not growing yet. Are we in a recovery? I guess the answer is yes.
MY point: Obama needs to listen to the economists more. Ignore the politicians crying about the debt and deficit.
If Obama continues to do what he has been doing, he has my vote in 2012. He has handled the economy superbly considering the hand he was given.
Last edited by Bostonian123; 04-02-2011 at 05:02 PM..
The GOP has the issue, they are on the right side. Let obama explain to the American people why $60 Billion in cuts, out of a budget of nearly $4 TRILLION and a deficit of $1.5 TRILLION is "extreme".
I've asked you a couple times now how much debt or deficit is too much and I am being told we are in a recovery true or false?
We are in this perceived "Debt Crisis", due in large part to the Recession. We must recover a working America, before anything is even possible be done about the growing debt. It is foolish to add to the Recession, as is the TParty idea, before the Country get people working and hence providing revenue.
We are in this perceived "Debt Crisis", due in large part to the Recession. We must recover a working America, before anything is even possible be done about the growing debt. It is foolish to add to the Recession, as is the TParty idea, before the Country get people working and hence providing revenue.
Perceived???
So now you are saying that balancing the budget will cause a prolonged recession or keep the economy from growing?
I have heard and read several times now that the problem is not the income but the spending, this seems logical to me since this is how I run my own budget, within my means.
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