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This deficit is unsustainable. We cannot keep increasing our debt at these levels, and cheer like a country full of ignorant lemmings.
I'm glad our deficits are going down, but we are still watching the bureaucrats and politicians in our government loot the US Treasury to punish their enemies and reward their friends.
Source? Link? Reminder, your ass is not a news source.
Bear in mind that the budget doesn’t have to be balanced to put the nation on a fiscally sustainable path; all that's needed is a deficit small enough that debt grows more slowly than the economy. World War II is the classic example. America never did pay off the debt. Economic growth just made that debt (something like $200 billion) irrelevant.
Economists tell us that a deficit at 2.5% is sustainable.
And to put this $200 billion decrease in the $650 billion deficit in perspective, we have ALREADY spent $228 billion in interest on the debt so far this year, with a total yearly bill of $360 - $450 billion. So all those tax increases and the expiration of unemployment benefits is equal to about half the cost of paying interest for Washington's unending stupidity.
And to put this $200 billion decrease in the $650 billion deficit in perspective, we have ALREADY spent $228 billion in interest on the debt so far this year, with a total yearly bill of $360 - $450 billion. So all those tax increases and the expiration of unemployment benefits is equal to about half the cost of paying interest for Washington's unending stupidity.
I am glad you mentioned interest.
As interest rates from the high interest bonds from the 1980s mature -- replaced by low interest bonds, the amount spent on interest has been declining -- even though total debt is rising.
You think for the next 5 months the US government is going to be running $30 billion/month deficits?
Actually, the deficit tends to large in the beginning of the calender year than it is later. That's because the government is issuing income tax refunds in January through May. Also, the sequester is taking effect, which reduces federal expenses. And the government is expected to receive dividend payments from Fannie and Freddie. Fannie Mae, Freddie Mac to help cut deficit - May. 9, 2013
Source? Link? Reminder, your ass is not a news source.
Bear in mind that the budget doesn’t have to be balanced to put the nation on a fiscally sustainable path; all that's needed is a deficit small enough that debt grows more slowly than the economy. World War II is the classic example. America never did pay off the debt. Economic growth just made that debt (something like $200 billion) irrelevant.
Economists tell us that a deficit at 2.5% is sustainable.
Oh for gods sakes.. you were moaning about 2.5% deficits under Bush, but we're 3 times that right now.
Furthermore, we indeed did pay off the debt. It might have been paid off by new debt but that doesnt mean the old ones were paid off.. Its repeating the same old crap to you over and over and over, as if you never learn..
As interest rates from the high interest bonds from the 1980s mature -- replaced by low interest bonds, the amount spent on interest has been declining -- even though total debt is rising.
And what happens when interest rates rise to 8 or 9 % because they will one day again. All debt fluctuates on a world wide market..
Source? Link? Reminder, your ass is not a news source.
Bear in mind that the budget doesn’t have to be balanced to put the nation on a fiscally sustainable path; all that's needed is a deficit small enough that debt grows more slowly than the economy. World War II is the classic example. America never did pay off the debt. Economic growth just made that debt (something like $200 billion) irrelevant.
Economists tell us that a deficit at 2.5% is sustainable.
The actual liabilities of the federal government—including Social Security, Medicare, and federal employees' future retirement benefits—already exceed $86.8 trillion, or 550% of GDP. For the year ending Dec. 31, 2011, the annual accrued expense of Medicare and Social Security was $7 trillion. Nothing like that figure is used in calculating the deficit. In reality, the reported budget deficit is less than one-fifth of the more accurate figure.
Republicans and Democrats spent last summer battling how best to save $2.1 trillion over the next decade. They are spending this summer battling how best to not save $2.1 trillion over the next decade.
In the course of that year, the U.S. government’s fiscal gap -- the true measure of the nation’s indebtedness -- rose by $11 trillion.
The fiscal gap is the present value difference between projected future spending and revenue. It captures all government liabilities, whether they are official obligations to service Treasury bonds or unofficial commitments, such as paying for food stamps or buying drones.
And what happens when interest rates rise to 8 or 9 % because they will one day again. All debt fluctuates on a world wide market..
Remember, bond interest is at the rate it was originally lent, not prevailing rates. The old bonds will still be at 1-2%.
If rates rise, it will mean the economy is humming along and the deficit will be small -- which means borrowing will be minimal.
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