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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
286645 posts

Our National Debt - Interest Payments over Time


so yesterday there were a few discussions about our debt. a common theme was seen stating (1) our debt is an asset and (2) our debt isn't really affecting us today and (3) we will address it....one day. if we address it today, bad things will happen.



so here is a projection of our INTEREST payments on the federal debt. this isn't addressing the actual debt, this is just the % of GDP our interest will eat up (projections of course)

and before this becomes a partisan discussion, Bush was bad for the debt. Obama is bad for the debt. Reagan/Bush 1 were bad for the debt. Clinton was bad for the debt. and in this time, our Congress has shifted from Dem to Rep, back and forth, so it's not about which party is bad for the debt. this is about the debt itself

US Federal Debt over time:









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Wally Sparks
Georgia Tech Fan
Atlanta
Member since Feb 2013
6240 posts

re: Our National Debt - Interest Payments over Time


Should make for an awesome Tricentennial in 2076.





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Patrick_Bateman
USA Fan
Member since Jan 2012
6861 posts

re: Our National Debt - Interest Payments over Time


Frightening.





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TrueTiger
LSU Fan
Chicken's most valuable
Member since Sep 2004
8870 posts

re: Our National Debt - Interest Payments over Time


It won't get paid.

I'm teaching my kids the Declaration of Independence.






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TerryDawg03
Georgia Fan
Member since Dec 2012
1422 posts

re: Our National Debt - Interest Payments over Time


We have a spending problem, period. Our debt will be our undoing. The claims on needing to raise revenues (non-newspeak: "taxes") assume that behavior doesn't change when tax rates are changed, which is incredibly false. The only way to effectively enact a $ for $ reduction in deficits is to cut spending while keeping taxes constant. Yes, there are other moving parts, but this is the closest $ for $ reduction method.





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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
286645 posts

re: Our National Debt - Interest Payments over Time


quote:

It won't get paid.

at least not at the current values. the tax of inflation is obviously the plan to "pay" the debt

that's the beauty of inflation. it's silent, secret, and slow. and it's a tax that people don't think about...especially INDIRECT inflation due to government subsidy (best example: ethanol subsidies increasing the cost of food)

the funny thing is this negatively affects things like savings, and people just accept it






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Taxing Authority
LSU Fan
Houston
Member since Feb 2010
21101 posts

re: Our National Debt - Interest Payments over Time


quote:

so here is a projection of our INTEREST payments on the federal debt. this isn't addressing the actual debt, this is just the % of GDP our interest will eat up (projections of course)
We're basically f*cked if we have to fight a war. Our spending is already near WWII level as percentage of GDP. With war-time inflation rates... we couldn't even fund the debt payments, much less finance a war effort.

Our economy is a ticking time bomb. In many ways we're where USSR was in the mid-90s.






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joshnorris14
Florida Fan
Florida
Member since Jan 2009
20601 posts

re: Our National Debt - Interest Payments over Time


It'll be much more frightening when interest rates finally start to rise.





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acgeaux129
USA Fan
We are BR
Member since Sep 2007
15011 posts

re: Our National Debt - Interest Payments over Time


quote:

the funny thing is this negatively affects things like savings, and people just accept it


It's not necessarily all negative. And inflation is not very dramatic right now either.






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Gmorgan4982
LSU Fan
Member since May 2005
96431 posts

re: Our National Debt - Interest Payments over Time


quote:

the funny thing is this negatively affects things like savings, and people just accept it
The Poli Board tells me that we need inflation.






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Wally Sparks
Georgia Tech Fan
Atlanta
Member since Feb 2013
6240 posts

re: Our National Debt - Interest Payments over Time


quote:

USSR
quote:

mid-90s

does not compute






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SlowFlowPro
Stanford Fan
Simple Solutions to Complex Probs
Member since Jan 2004
286645 posts

re: Our National Debt - Interest Payments over Time


the poli board and money talk fear negative price corrections as if it's the equivalent of somebody telling them that santa doesn't exist





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Kashonly
Member since Jan 2006
25970 posts

re: Our National Debt - Interest Payments over Time


one plague/outbreak where 15% of the pop died, would solve all problems





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joshnorris14
Florida Fan
Florida
Member since Jan 2009
20601 posts

re: Our National Debt - Interest Payments over Time


quote:

one plague/outbreak where 15% of the pop died, would solve all problems


Only if those 15% were not productive individuals.

And still, that has nothing to do with the problem.



This post was edited on 4/27 at 2:15 pm


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Interception
Providence Fan
Member since Nov 2008
11089 posts

re: Our National Debt - Interest Payments over Time


Seriously, we should sale something





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Kashonly
Member since Jan 2006
25970 posts

re: Our National Debt - Interest Payments over Time


balanced budget amendment

any overages must be paid the following year in a tax hike.

immediate tax increase makes public more involved in spending decisions.

estate tax earmark directly to pay debt(on your way out tax for debt owed)







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TerryDawg03
Georgia Fan
Member since Dec 2012
1422 posts

re: Our National Debt - Interest Payments over Time


quote:

It's not necessarily all negative. And inflation is not very dramatic right now either.


Which inflation statistics are you using?

And what part of the statement are you saying isn't necessarily all negative?






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Kashonly
Member since Jan 2006
25970 posts

re: Our National Debt - Interest Payments over Time


quote:

any overages must be paid the following year in a tax hike.

immediate tax increase makes public more involved in spending decisions.



for example
quote:

2012
Total revenue $2.449 trillion
Total expenditures $3.538 trillion
Deficit $1.101 trillion



3.538+1.101= 4.639

4.639/2.449= 1.89%

so tax rates must be increased by 89.% in 2013 to account for expected outlays + uncollected spending from the year before.

as soon as this happens, you will get 85% of people DEMANDING that we decrease spending.

War with N.Korea and Iran....every politician loses his/her job.






This post was edited on 4/27 at 2:37 pm


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ljhog
Arkansas Fan
Lake Jackson, Tx.
Member since Apr 2009
9913 posts

re: Our National Debt - Interest Payments over Time


quote:

so tax rates must be increased by 89.%

you buy a lot of lottery tickets don't you?






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Zach
LSU Fan
Member since May 2005
61007 posts

re: Our National Debt - Interest Payments over Time


Paul says everything is OK.
LINK






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