VIEWPOINT: The debt everyone is freaking out about doesnt exist

[pknopp]

"Projections". I think we all remember the governments projections on the effect the Stimulus package would have on unemployment. Those "projections" were not even in the ballpark.

I'm not sure why anyone should be expected to still believe in government "projections".

Last thing.....projections are not facts.

[hawkeye2009]

Originally Posted by Mircea

Yes, it does exist. You might want to post a comment on lame-brain's blog that tarting off with an outrageous lie is not going to win any Pulitzer Prizes.



What a load of crap from a Little Brain. They must have had a seance with both Göbbels and Himmler to come up with that kind of NAZI style propaganda and disinformation.

Interest Expense Fiscal Year 2013
January $17,861,590,831.57
December $95,736,594,801.52
November $25,068,968,472.99
October $12,922,741,407.27
Fiscal Year Total $151,544,895,513.35

Government - Interest Expense on the Debt Outstanding

That's the interest you pay on your debt.....right now...this year...it comes to $455 Billion annually.

You collect what, $2.1 TRILLION for all tax revenues annually, so $455 Billion is approaching 25% of the total tax revenues the government collects.

For each and every year that you run a budget deficit, the National Debt increases....and so does the amount of interest you have to pay on that debt annually.

Do you want to collect $2.1 TRILLION in tax revenues and then turn around spend $1 TRILLION on debt interest?

I guess a better question is why do you and Little Brain Blogger ignore that?



Wrong. The Child of Chaos was right on the money.

Your biased political ideology blinds you to the reality I just proved.

For all of you who don't want Austerity™, the policies you advocate will force Austerity™ upon you.

Why do you intentionally ignore the countries where Austerity™ did work?

Let's look at Iceland....


Iceland shows the way: reject austerity - English pravda.ru

Ireland (austerity) vs Iceland (default) – who's winning? And a ...

Iceland's President: we were saved by avoiding austerity | Liberal ...

Iceland's Recovery Proves Fallacy of Economic Austerity

Daily Kos: IMF & Iceland: If this isn't true, I want to know, because if it ...

http://www.dailykos.com/.../-IMF-Ice...I-want-to-know...
Aug 23, 2012 – I've known that Iceland's "anti-austerity" program of the past few years


...see that?

Now.......what does the government of Iceland say in reality?

http://www.mfa.is/media/MFA_pdf/Icel...nuary-2012.pdf

"Emergency legislation was passed by the Icelandic parliament on 6 October 2008 in order to secure the continuation of domestic banking services and payment systems abroad after the collapse of the banks.

A revised strategy for lifting of the capital controls introduced in late 2008 was announced in March 2011. The strategy aims at gradual lifting of the controls without threatening economic and financial stability.

Due to the devaluation of the króna, Icelandic households and companies have experienced a great increase in their debt through the widespread inflation indexing of mortgages and use of loans in foreign currencies."

Funny, but the Iceland government did use austerity measures, they even admit and claim they used austerity measures, yet everyone ---almost entirely on the Left -- is claiming they did not.

Reuters got it right.....

Europe should see Iceland as recovery role model: PM | Reuters

www.reuters.com/article/.../us-iceland-idUSBRE85B12O20120612
Jun 12, 2012 – Nevertheless, Sigurdardottir told Reuters that Iceland's mix of measured austerity and unorthodox policies -

So...who is more credible, Daily Kos or Sigurdardottir and his Icelandic Government?


Talk about freaking propaganda.....


I want to point out the fallacy of the $11.6 TRILLION.

That is the public part of the National Debt. It does not include intra-governmental debt.

In other words, you have $11.6 TRILLION in public debt not including the OADI Trust Fund, the OASI Trust Fund, the HI (Medicare) Trust Fund, the SMI Trust Funds (Medicare B and Medicare D), the Railroad Retirement Trust Fund, the Black Lung Trust Fund and the others totally $5+ TRILLION.

The OADI (Social Security Disability) Trust Fund will mercifully cease to exist about 14 months from now.

The OASI (Social Security) Trust Fund and its $2.7 TRILLION will be converted to public debt over the next 10 years ---- meaning the ratio of public debt to intra-governmental debt will increase....so that $11.6 TRILLION is in reality $14.3 TRILLION.

Then add in the HI (Medicare) Trust Fund which fortunately has less than $244 Billion goes belly up in about 5 years.

You get the picture....and the entire time the Left is advocating $1+ TRILLION in deficits.

As time passes, it will become more than obvious that the US will never be able to repay its debt.....your average GDP annually since 1961 is a mere 2.89%, so you don't have to be a Rhodes Scholar to see that at some point in the near future, buying US securities will incur tremendous risk....risk that can only be negated by higher interest rates.....costing more money to service the debt, and forcing Austerity™.

That will be even more obvious when the bills for Obamacare™, Medicare and Social Security come due (in that order) over the next 10 years.

Fiscally...

Mircea



It's mind-boggling that a government office could be so wrong all the time....there's really no other possibility, excepting they are forced to use Fantasy Accounting™.

Agreeing...

Mircea

Great post. They won't listen, as the "debt doesn't matter" sound byte has been sent to all the liberals to incorporate as the Gospel truth, as told by Marx.

The funny thing is that there are problems-

1. The dollar will not always be the world reserve currency. When it is not, say hello to marked currency devaluation and higher inflation.

2. The CBO "assumptions" are made on the presumption of a 20% decline in federal spending, per annum, starting in 2012. Good luck with that one.

3. The CBO assumptions are based on current very low interest rates. When those rates reach historic norms (5%), we are in trouble.

4. The left assures us that we can "grow out" of our debt. This would require 10% growth rates per annum to do so with current spending levels. We have $2.5 trillion in revenues, $15 trillion GDP, and $17 trillion debt. It is an integration problem. Even with GREAT GDP growth, we cannot "grow ourselves" out of this debt.


Gee.......................... it all sounded so good until the flaws in "the debt doesn't matter" argument are presented. Here is the nasty conundrum- our economy is based on credit, and thus debt. However, this cannot be sustained forever, for the reasons above. Even the champions of "the debt doesn't matter" crowd (Reich and Stiglitz) cannot explain what happens with the above four points.

[lycos679]

Originally Posted by hawkeye2009

Great post. They won't listen, as the "debt doesn't matter" sound byte has been sent to all the liberals to incorporate as the Gospel truth, as told by Marx.

The funny thing is that there are problems-

1. The dollar will not always be the world reserve currency. When it is not, say hello to marked currency devaluation and higher inflation.

2. The CBO "assumptions" are made on the presumption of a 20% decline in federal spending, per annum, starting in 2012. Good luck with that one.

3. The CBO assumptions are based on current very low interest rates. When those rates reach historic norms (5%), we are in trouble.

4. The left assures us that we can "grow out" of our debt. This would require 10% growth rates per annum to do so with current spending levels. We have $2.5 trillion in revenues, $15 trillion GDP, and $17 trillion debt. It is an integration problem. Even with GREAT GDP growth, we cannot "grow ourselves" out of this debt.


Gee.......................... it all sounded so good until the flaws in "the debt doesn't matter" argument are presented. Here is the nasty conundrum- our economy is based on credit, and thus debt. However, this cannot be sustained forever, for the reasons above. Even the champions of "the debt doesn't matter" crowd (Reich and Stiglitz) cannot explain what happens with the above four points.

I can! The living standard of the east and west will eventually reach an equilibrium, but the west will be saddled with debt.

[A Common Anomaly]

Originally Posted by hawkeye2009

Great post. They won't listen, as the "debt doesn't matter" sound byte has been sent to all the liberals to incorporate as the Gospel truth, as told by Marx..

I love how providing data is all of sudden representative of Marxism, but perhaps that is all you and Mircea have - a dysfunctional worldview in which you and Joe fight Marxism.


That is cute.

[petch751]

Originally Posted by Wapasha

So we can just keep printing money and monetizing the debt, until the dollar is worth less then the ink printed on it. Al it takes is for countries to lose faith in the dollar, and dump it as the world's currency.

LOL, yea I hear they are pumping that into the lefties brains.

Oh and with all the printing... just think, when you get your paycheck... don't bother cashing it cause it won't be worth the paper its printed on thanks to the Dems and Obama.

[pie_row]

Originally Posted by BradPiff

The actual truth is that the debt everyone’s freaking out about does not exist.

Yes it does exist. It is just held by the government.