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Originally Posted by Majin
So am I to assume you believe we should cut 9 trillion? Or is that not even enough?
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It's simple 5th Grade Math.
You take in [currently] $2.17 TRILLION in revenues.
The government's budget should be $1.5 TRILLION and the balanced used to pay off the non-public portion of the National Debt, of which about 95% is IOUs from the Social Security Trust Fund (the remaining 5% is budget surplus from Department of Education, HUD and Department of Defense shuffled around to cover each other's losses and budget over-runs).
If you did that, your non-public debt would be $0 by 2018.
Unfortunately, the public part of the National Debt would then be $12.1 TRILLION.
It would then take you until 2034 to reduce the public part of the National Debt to 3% of GDP.
At that time, you would have to cut $93.5 TRILLION in benefits and payments over a space of 16 years, because you won't have the money to pay $108 TRILLION in unfunded liabilities.
If you chose not to pay down the public portion of the public debt, and instead work on paying down your $108 TRILLION in unfunded liabilities, then you still must cut $82 TRILLION.
However, this is pointless.
Let's cut to the chase and I'll prove to everyone you how uninformed you really are.
Assume that the GDP grows 2.5% every single quarter through 2050; and
Assume that a 2.5% increase in GDP translates into a 2.5% increase in tax revenues (it DOES NOT, but let's assume for the sake of argument to destroy your drug-induced hallucinogenic fantasy that it does); and
Assume that you have the moral courage to elect responsible legislators who will stick to the program and limit government spending to 75% of tax revenues; then...
...you have no choice but to cut $76.7 TRILLION in unfunded liabilities.
To demonstrate further that you are totally clueless, let's assume an economy on Steroids and Starsux and your GDP grows at 6% every single quarter through 2050 and let's assume that an increase of 6% GDP equals a 6% increase in tax revenues (it doesn't but we'll go out on a limb here) and so....
...you still have to cut $62.7 TRILLION.
Now, is there anyone who still does not understand that you cannot pay for your fantasies?
Quote:
Originally Posted by northstar22
We don't need to cut spending, we need another stimulus, and an even bigger one this time.
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Obama spent $12 TRILLION in 3 years and all you got was a $500 Billion increase in GDP.
That's a ratio of 24:1
Again, I ask, who on this Earth is going to fund your spending spree?
The EU has its own problems and cannot. Japan is buried in nuclear waste. Russia is laughing at you. China has said they refuse. The Swiss don't wanna.
Zimbabwe to the rescue? Is that what you thought?
Libya? Is Libya gonna buy up the $1.5 TRILLION in junk bonds you're about to dump on the market?
Are you one of those Hollow Earth freaks? You know, the Earth is hollow and Shangri La is there with its streets paved of gold and they're going to come to your rescue?
Dream on.
Quote:
Originally Posted by Ecovlke
Stocks are plummeting today. The Dow fell 300pts.
{snippet}" Investors are increasingly worried about economic weakness in the U.S. and a debt crisis in Europe."
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Yes, yes, of course, because it begs the question who is going to buy your junk bonds over the next several years?
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Originally Posted by BentBow
Those born today, have no SS into the system and tomorrow you don't get SS unless your 80.
It will fix itself in 80 years.
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It will be a lot sooner than that.
As I have correctly predicted every year for the last 4 years, Social Security keeps moving the default date up. This year's report says 2016 and the June 2012 report will say 2014 and the June 2013 will say default is imminent.
Your payroll declined in the 2nd Quarter and Social Security may default on benefit payments this Quarter and have to borrow from the federal budget.
If payroll declines 3rd Quarter then Social Security will default in the 4th Quarter.
Your economy is flat and will continue to be flat or recessionary the rest of the decade, and the only way to convert the IOUs from the Trust Fund (that's the non-public portion of the National Debt I mentioned earlier) then the system is bankrupt.
The only possible way to convert those IOUs is with a budget surplus. The reason that is non-public debt is because law prevents it from being converted to treasury securities.
The last I saw was that Social Security is $42 TRILLION of your $108 TRILLION in unfunded liabilities.
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Originally Posted by northstar22
Great post. The only way to bring back outsourced jobs would be to enact protectionist trade policies -- repeal all free trade agreements, place high tariffs on all imported goods (high enough to make U.S.-made products cheaper) and levy penalty taxes on businesses that send jobs overseas.
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Quote:
Originally Posted by northstar22
Congress can pass laws making it illegal for U.S. businesses to move out of the country, and I'd be all for that. Someone has to stop unethical businesses from strangling our economy and putting Americans out of work.
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You are the least competent economist. What a great way to guarantee a major economic depression and a permanent contraction of your economy.