Our National Debt - Interest Payments over Time | TigerDroppings.com
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SlowFlowPro
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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.

Image: http://www.intellectualtakeout.org/sites/www.intellectualtakeout.org/files/imagecache/chart_content/interest-payments-balloon2smaller_0.png


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:

Image: http://scorpion-cave.tripod.com/history_debt.gif




Wally Sparks
Georgia Tech Fan
Atlanta
Member since Feb 2013
9909 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
13715 posts

re: Our National Debt - Interest Payments over Time
Frightening.


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TrueTiger
LSU Fan
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Member since Sep 2004
14913 posts

re: Our National Debt - Interest Payments over Time
It won't get paid.

I'm teaching my kids the Declaration of Independence.


TerryDawg03
Georgia Fan
The Deep South
Member since Dec 2012
3117 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
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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


Taxing Authority
LSU Fan
Houston
Member since Feb 2010
24907 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.


joshnorris14
Florida Fan
Florida
Member since Jan 2009
21480 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.


Gmorgan4982
Member since May 2005
101746 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.


Wally Sparks
Georgia Tech Fan
Atlanta
Member since Feb 2013
9909 posts

re: Our National Debt - Interest Payments over Time
quote:

USSR
quote:

mid-90s

does not compute


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SlowFlowPro
Stanford Fan
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Member since Jan 2004
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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


Iona Fan Man
Iona Fan
Member since Jan 2006
27462 posts

re: Our National Debt - Interest Payments over Time
one plague/outbreak where 15% of the pop died, would solve all problems


joshnorris14
Florida Fan
Florida
Member since Jan 2009
21480 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


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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Iona Fan Man
Iona Fan
Member since Jan 2006
27462 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)



TerryDawg03
Georgia Fan
The Deep South
Member since Dec 2012
3117 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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Iona Fan Man
Iona Fan
Member since Jan 2006
27462 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


ljhog
Arkansas Fan
Lake Jackson, Tx.
Member since Apr 2009
10987 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
70214 posts
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re: Our National Debt - Interest Payments over Time
Paul says everything is OK.
LINK


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