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Default is the only way that ther world will lose confidence in the dollar. Ironically, it's what the Go 'Murica! Tea Party wants in Congress. They are also the same people who love the Constitution, but want to secede from it
They should pass a budget, but that is still a less troubling thing than defaulting. There's no comparing the two.
Until national debt is more than our GDP? We will get to a point where most of our revenue pays for interest on the debt. I don't think democrats and republicans really understand how much of a spending problem we actually have. Without a change of corse the only real option in the future is high inflation and printing money to reduce the value of the debt, turning our nation into a bannana republic.
This is how we spend.
Why S&P Downgraded the US:
U.S. Tax revenue: $2,170,000,000,000
Federal budget: $3,820,000,000,000
New debt: $ 1,650,000,000,000
National debt: $14,271,000,000,000
Recent [April] budget cut: $ 38,500,000,000
Let’s remove 8 zeros and pretend it’s a household budget:
Annual family income: $21,700
Money the family spent: $38,200
New debt on the credit card: $16,500
Outstanding balance on the credit card: $142,710
Budget cuts: $385 Bringing the Budget Numbers Down to Size - By Carrie Lukas - The Corner - National Review Online
Do you see why this is such a huge problem? It won't go away if everyone keeps their head in the sand.
Until national debt is more than our GDP? We will get to a point where most of our revenue pays for interest on the debt. I don't think democrats and republicans really understand how much of a spending problem we actually have. Without a change of corse the only real option in the future is high inflation and printing money to reduce the value of the debt, turning our nation into a bannana republic.
This is how we spend.
Why S&P Downgraded the US:
U.S. Tax revenue: $2,170,000,000,000
Federal budget: $3,820,000,000,000
New debt: $ 1,650,000,000,000
National debt: $14,271,000,000,000
Recent [April] budget cut: $ 38,500,000,000
Let’s remove 8 zeros and pretend it’s a household budget:
Annual family income: $21,700
Money the family spent: $38,200
New debt on the credit card: $16,500
Outstanding balance on the credit card: $142,710
Budget cuts: $385 Bringing the Budget Numbers Down to Size - By Carrie Lukas - The Corner - National Review Online
Do you see why this is such a huge problem? It won't go away if everyone keeps their head in the sand.
Most people are aware. The issue is how you address the problem. Increasing the debt, which I think should be reduced, is still a far less harmful thing than defaulting. Defaulting would bring on a depression.
Most people are aware. The issue is how you address the problem. Increasing the debt, which I think should be reduced, is still a far less harmful thing than defaulting. Defaulting would bring on a depression.
Everyone wants to reduce spending, it sounds good.
Very few in government, on both sides, will actually do that, they have to keep the pork projects and entitlements flowing.
So you have to force their hand with things like debt ceiling, otherwise nothing changes. And even when your threaten default, very little actually gets reduced.
Our credit rating will drop eventually even if the debt ceiling keeps rising.
We have a spending problem, the people in power won't deal with it. Period.
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