Important to the world!
I wanted to copy a post I saw before. I can't find it. It gave the number one trillion some clarity. One trillion seconds, lets think...=3 years? 5 years? One might think it can't be more then 10 years, right? IT IS approx. 35,000 years!!! The number one trillion is almost un-comprehensible. America's deficit is more than14.5 times that.My point is, WE ARE SCREWED! Not just America. With the global economy the way it is, if America fails the whole world will suffer greatly. How many dollars per year, per American, would it take to pay back 14.5 trillion dollar deficitin ten years? This is ASS U MEing no more debt is added.I don't know the math but when you look at seconds relativity one can see there is NO WAY to dig us out. The government knows this but won't leak it to us. For any of them to say, I have a plan to pay the deficit in 10 or even 20 years is a out right lie, and they know it!I have no answers but, WE NEED TO WAKE UP! don't go about our lives and forget this in a couple weeks as most of us do all the time. Remember Japans quake? See what I'm saying?
Quote;Part of the problem is that people-including the OP, confuse DEBT and DEFICIT.
And politicians use that to theeir advantage.
DEBT is the total amount of debt owed by the government.
DEFICIT is the amount that the government spends over the amount of revenue received for a particular period. MY REPLY.....You are right. I DIDN'T understand the terminology. I'll probably show that with this statement... It seems the problem is worse than I realized if deficit is a time period, say for example one year, and each "time period" adds to the last, the total debt will increase. I'm not saying you are, but initially I think I'm getting smoke blown up my backside. I may just be under educated. I do realize that if it is debt or deficit the number is so BIG we are in trouble.How long will it take to cover the expense, and is it even possible. America is on the edge of failure.The global economy can't sustain this.Thatis the point of the post.
Debt of private and public sector as well as budgetary deficit are major problems not only to US but Europe as well. Currently 7 countries (Belgium, Iceland, Italy, Portugal, Ireland, Spain and Greece) in Europe have debt over 100% of their gross domestic product, which is approximately what US debt is right now. Of these, Greece is beyond saving and others hang on the brink of an abyss. Also countries that have taken care of their fiscal discipline are suffering under increasing debt burden and only very few countries in Europe have less debt that 50% of GDP (official convergence criteria for joining Euro zone was max 3% budget deficit in consecutive years and max 60% debt ratio of GDP but that was not respected from the start and now European reap what they sowed).
Same time when debt increases, both in US and Europe money is brought more into circulation, which leads to long term external devaluation of currencies as well as inflation and when situation is getting worse, even to stagflation. Same time countries are fundamnetally incapable of structural changes to cut their spending through structural changes (mainly streamlining bureaucracy). Also in crises of financial institutions it is incomprehensible, why governments do not just save institutions, but their owners and (mis)management as well, after they have engaged in risky financial bets and lost. That only will encourage such irresponsible investment behaviour in future, as running banks will be risk-free, thanks to government interventions. If risks bring profits, you pocket them. If they turn sour, taxpayer picks the tab.
If nothing will be done to it, we may be witnessing demise of the "western world" and civic democracies as leading politoeconomical unit on this globe. Maybe future generations' undisputed classic will be a latter day Edward Gibbon will date 2008, or any other year between 1992 and 2008 as a turning point when "The History of the Decline and Fall of the Western Civilization" became not just an idea but an inevitable and irreversible fact. As an optimist, I tend to believe it may not yet be too late. Unfortunately not many politicians and other institutional decision-makers seem to realise that.
The new debt "ceiling" (what a joke!) is $17 trillion. A $17T line of bills would extend from the center of the sun to 757,411,616 miles beyond the orbit of Saturn. The wall of bills around the equator would be 23.7 feet high. And is there anyone who seriously believes that the limit will not continue to be raised again and again every time those parasites in Washington want to spend more? The same bullshit lies about "draconian cuts" and imminent crisis will be repeated. The same crap about military pay and SS checks will be revomited. The same allegations of not caring for America will be rehashed. The same gang of thieves will put our kids and grandkids for the next ten generations into ever more crushing debt. And the same braindead voters will elect them over and over. There's a reckoning coming. When the inevitable crash occurs, 1929 will seem like dropping a quarter into a sewer grate. Other countries might be thinking, "Good! It's about time the US was taken down." Know this: when the United State economy collapses like a card house in a wind tunnel, you will go down with us. Even now the EU is on the precipice of a massive failure. It won't take much to push it over the edge. The US fall will be that catalyst. One thing is absolutely certain: the engineers of the economic destruction of the "civilized" world will be hated for the next 200 years.
Very well put! Thank you, as thats why I titledthis postas I did.
It's actually worse. MUCH worse !
"They" say that Social Security is set to run out of money sometime 2025 or some such.
Fact is, of that 14 trillion debt, 29% is owed to China, 26% to Japan, then smaller amounts elsewhere.
Social Security has no money. A certain part of that 14 trillion is owed to Social Security.
Social Security counts being funded as the IOU's from the general fund !!
Congress already spent that money on pork projects, medicaid, medicare, student "loans" and such.
That 2 trillion deficit reduction touted by the Repub's is merely a 2 trillion cut in the projected 10 trillion deficit
over ten years, leaving a 7.x trillion deficit intact.
Whoever said the "deal" was merely instead of driving full throttle 80 MPH toward a clif is now merely driving
mostly full throttle 60 MPH toward that cliff was right !
The US government ( whether repub or dem ) can't continue spending more than the GDP of the nation indefinitely.
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