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Yes, we can determine that we must continue bombing Afghani's and arm terrorists (among other things) or pay back our loans.
Which do you think we should do?
Kind of late in the game to make that decision now. However, moving forward I think we need to make strategic cuts in spending and raise taxes slightly. While the number is still too big, there are far worse things than a deficit that is roughly 5% of GDP.
Yes, the President must pay our debts if after doing so there would only be enough money left to pay about half of the other costs of government based on expected tax revenue. Then what?
Kind of late in the game to make that decision now. However, moving forward I think we need to make strategic cuts in spending and raise taxes slightly. While the number is still too big, there are far worse things than a deficit that is roughly 5% of GDP.
This has been known as a possibility with a high probability for a long time. The GDP argument is a bit misleading also as much of that is the current bubble economy that will pop but all the same, if you say it's only 5%, as I said, there should be no threat or worry with paying it off.
This has been known as a possibility with a high probability for a long time. The GDP argument is a bit misleading also as much of that is the current bubble economy that will pop but all the same, if you say it's only 5%, as I said, there should be no threat or worry with paying it off.
The 5% is of GDP, not tax revenues. So, while we have the economic ability to have a lower deficit, and thusly pay down the debt, we don't have the revenue stream to do so.
Yes, the President must pay our debts if after doing so there would only be enough money left to pay about half of the other costs of government based on expected tax revenue. Then what?
Then the time has come to contract the size and expense of the Federal Government, to levels that are sustainable without debt and deficits.
All that non-essential crap they talk about, could be the first to go and start from there.
So, while we have the economic ability to have a lower deficit, and thusly pay down the debt, we don't have the revenue stream to do so.
Of course we do. As I noted though, we might have to make other decisions. Why is it that we would have to make the decision to not pay our loans as opposed to something like funding terrorists?
The countries holding the loans aren't too worried about it either.
Asian governments consider a U.S. debt default unthinkable and see the eventual tightening of U.S. monetary policy as a bigger issue for managing their reserves. Even if the United States was to default, its debt markets would still be the safest and most liquid in the world. Importantly, they take a far longer-term view than most private investors.
"We're keeping an eye on potential market risks such as tapering, the debt ceiling and a government shutdown, but that does not necessarily mean we regard the current situation as critical," a Japanese government official, who declined to be identified in the absence of authorization to speak openly to the media, told Reuters this week.
The new normal is the crap is continiously hitting the fan.
there is the adage that people rise to the level of their incompetence. Our govenments have reached that level.
No one...no party has a way[plan] to cut or spend to the level of our intake.
Every Federal expenditure goes to someone. Goods and services yes, but the last link in the chain is a person. They say the federal government does not create jobs, it may not but it keeps lots afloat.
The new normal is the crap is continiously hitting the fan.
there is the adage that people rise to the level of their incompetence. Our govenments have reached that level.
I completely agree with you here. The vast majority of people we elect from both parties are nothing more than partisan imbeciles.
Quote:
No one...no party has a way[plan] to cut or spend to the level of our intake.
Every Federal expenditure goes to someone. Goods and services yes, but the last link in the chain is a person. They say the federal government does not create jobs, it may not but it keeps lots afloat.
With that bill always coming due.
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