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If you only have a yearly deficit of 5% of the GDP, will it not be a total debt of 100% of the GDP in about 14 years?
Nobody talks about compounded debt. Einstein said that compounding is the most powerful force in the universe. The US is headed toward the most painful example of this, in terms of debt, in the history of man.
Um, no.
The debt doesn't compound because we make the interest payments. But the GDP actually does compound. And inflation does too. Assuming an average nominal GDP growth of 5.5% (roughly 3% real GDP growth plus 2.5% inflation, about average for the last 35 years, 2009 being the glaring exception) , a yearly deficit of 5% will result in a cumulative debt of just over 50% of GDP in 14 years. Not that that's good, but it's a far cry from 100%.
In another 14 years, the total debt will be 75% of GDP. In ANOTHER 28 years it will be 90%. As long as the nominal GDP growth % is larger than the deficit as a % of GDP, we never get to 100%.
If we ran 2.5% of GDP deficits under the same nominal GDP growth scenario, we'd accumulate debt = 40% of GDP in 35 years. Over the next 35 years that would only increase to ~47% of GDP. And over the NEXT 35 years it would only grow to 48%. That's why rational people understand that small deficits aren't the end of the world, especially if the government is using the deficits to do things that amplify real GDP growth.
1) Emotion driven followers who believe the Leftists lies no matter how many times they hear them.
2) The Liars who know they're lying and manipulating the low information lemmings.
Agreed-
When liberals attempt to present such manipulated, false data in order to press thier "point" (with the old percentage change ruse), one can only conclude one of two things-
1. Liberals are simply deceitful and will present any and all false and misleading data to advance thier agenda.
2. Liberals are idiots and simply do not know any better.
So we have a choice of #1 or #2- which is it? Obviously, the data shows that Obama has racked up the largest deficits in US history and that the larger "percentage decline" in the deficit (while maintaining a very large deficit) is simply due to the fact that the "decline" is measured from MASSIVE DEFICIT SPENDING.
Below are the actual year by year deficits. One can see that Obama is the champion of spending and his "best" year is 50% higher than the average deficits of Bush.
So you are more in debt, but the amount of debt that you are accruing on a charge card is at a lower rate. So you are telling me this is the key to prosperity?
BRB ruining my finances. Overall US debt is SKYROCKETING.... over 17 trillion now. Got some swampland in Florida for you. You can finance it !
And like it or not, it is far easier for right-wing wackos to dupe sycophants into believing the worst than it is to convince people that things are getting better. It is unfortunately human nature to be pessimistic at the drop of a hat rather than optimistic unless inundated with contrary evidence.
And several studies have shown that people actually double-down on their beliefs when confronted with proof to the contrary.
Odd, but true.
Last edited by TigerLily24; 04-29-2014 at 07:42 AM..
My question is why are liberals so damned stupid as to believe every cockamamie story fed them from the boob tube, and every word coming out of the mouths of career liars?
They have been pumping over 80 Billion dollars PER MONTH in QE which is not accounted for in the regular annual budget numbers you mouth breathers are drooling about. That 80 Billion represents about 30% of the entire federal budget!!!!
A lot of people believe our problems as a country are due to having lawless lying criminals in charge. The reality is however, we have become a nation of nitwits who believe every lie fed them like a bunch of retarded kindergarteners, and because of that sad state of affairs, no other outcome could or should be expected.
That's the reality .... a nation of unsophisticated suckers is all it takes to guarantee that con artist criminals will run amuck and have their way.
oh please.. We've heard non stop babbling from you left wing kooks that if we cut the deficit the economy was going to collapse. Now we're seeing exactly what we said would happen, which is cutting the federal deficit not only doesnt collapse the economy, but by leaving the money in the economy, the economy will grow on its own, thus generating increased federal revenues.
Lets face it, you guys got your theories by listening to ridiculous talking points and you were played as stupid..
You can lie to yourselves, and everyone else, all you like, you play around with the numbers to create any illusions you want, but when you are all done, the fiscal operating debt has climbed faster under Obama then all previous presidents combined.
Your thread, and others like it, is why the term lib'tard is enduring, and appropriate.
The debt doesn't compound because we make the interest payments. But the GDP actually does compound. And inflation does too. Assuming an average nominal GDP growth of 5.5% (roughly 3% real GDP growth plus 2.5% inflation, about average for the last 35 years, 2009 being the glaring exception) , a yearly deficit of 5% will result in a cumulative debt of just over 50% of GDP in 14 years. Not that that's good, but it's a far cry from 100%.
In another 14 years, the total debt will be 75% of GDP. In ANOTHER 28 years it will be 90%. As long as the nominal GDP growth % is larger than the deficit as a % of GDP, we never get to 100%.
If we ran 2.5% of GDP deficits under the same nominal GDP growth scenario, we'd accumulate debt = 40% of GDP in 35 years. Over the next 35 years that would only increase to ~47% of GDP. And over the NEXT 35 years it would only grow to 48%. That's why rational people understand that small deficits aren't the end of the world, especially if the government is using the deficits to do things that amplify real GDP growth.
This must be what is referred to as "fuzzy math" ... but it's really fuzzy thinking.
No where in your narrative do you refer to interest rates. This is a rather glaring omission when discussing financials that are related to TRILLIONS OF DOLLARS.
Moreover, assuming growth rates in an imploding economy, and ignoring the real likelihood of vastly elevated inflation rates when running such unprecedented deficits, compounded by unprecedented trade deficits (a huge factor), coupled with the phony baloney fraud of counting Trillions of borrowed dollars as part if the GDP ... well sir, that's not likely to land you a job as a CFO in a company that wishes to remain solvent for 90 days, but it does certainly put you in the running for either an economics professor at one of our crack universities, or a lucrative position as advisor to the Obama administration.
You can lie to yourselves, and everyone else, all you like, you play around with the numbers to create any illusions you want, but when you are all done, the fiscal operating debt has climbed faster under Obama then all previous presidents combined.
Your thread, and others like it, is why the term lib'tard is enduring, and appropriate.
No freaking doubt about it.
The wholesale looting of the nation of nitwits has reached feverish levels, and the band keeps playing and the passengers keep dancing, while the Titanic lists.
My question is why are liberals so damned stupid as to believe every cockamamie story fed them from the boob tube, and every word coming out of the mouths of career liars?
They have been pumping over 80 Billion dollars PER MONTH in QE which is not accounted for in the regular annual budget numbers you mouth breathers are drooling about. That 80 Billion represents about 30% of the entire federal budget!!!!
A lot of people believe our problems as a country are due to having lawless lying criminals in charge. The reality is however, we have become a nation of nitwits who believe every lie fed them like a bunch of retarded kindergarteners, and because of that sad state of affairs, no other outcome could or should be expected.
That's the reality .... a nation of unsophisticated suckers is all it takes to guarantee that con artist criminals will run amuck and have their way.
They are liberal progs, they are easily manipulated and fooled by bureaucrats and politicians who can play around with the words and numbers, and convince them that up is down, left is right, or a deficit is a surplus.
What was the deficit in 2001, what was it eight years later in 2008, then what was it four years latter in 2012?
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