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Started By
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re: US Debt Default
Posted on 5/17/23 at 2:12 pm to thunderbird1100
Posted on 5/17/23 at 2:12 pm to thunderbird1100
The GFC started QE and the pandemic accelerated it which would have been major factors to the deficit spending. And it is a problem, yet the biggest concern is spending growth outpacing income (GDP) growth.
The government and entitlements are getting bigger and slowing down growth.
The government and entitlements are getting bigger and slowing down growth.
0
Posted on 5/17/23 at 2:24 pm to meansonny
Repaying the debt is impossible so we are going to default. Derivatives anyone!!
Posted on 5/17/23 at 4:07 pm to ks_nola
quote:
Who do we actually owe debt to that is going to force us to pay? If we simply say we are paying and wipe that debt off the books similar to say student debt we don't need to raise the limit. Or just raise it and kick the can down the road per usual.
The federal reserve is the largest holder of US debt, 35% of it. Social Security is also a huge holder of federal debt. Pension systems, state and local govts, commercial banks.
Default would be the end of the US financial system as you know it and result in everyone being forced to live a significantly less comfortable lifestyle.
This post was edited on 5/17/23 at 4:23 pm
Posted on 5/17/23 at 4:07 pm to thunderbird1100
quote:
Inflation from 2000 to now is about 76%. So if it was following close to inflation just under 6 trillion should be about 10.5 trillion or so now.
It's now at $31.4 trillion which they are about to increase probably beyond $32 trillion.
The numbers would be a little closer accounting for population which is up 50 million people since then, or about 17 percent.
Probably still not good, but expecting debt to mirror inflation when the population serviced by that debt has increased would seem to be incorrect.
Posted on 5/17/23 at 4:18 pm to Dawgfanman
I’m in agreement. The FED must go! People should not be enticed to risk money in the ponzi stock market. Interest rates at or near zero and the corrupt bankers have failed us and our administration has contributed.
Posted on 5/17/23 at 4:19 pm to Teddy Ruxpin
quote:
The numbers would be a little closer accounting for population which is up 50 million people since then, or about 17 percent.
Probably still not good, but expecting debt to mirror inflation when the population serviced by that debt has increased would seem to be incorrect.
You are making an argument based on debt per cap?
I don't think you are helping your argument.
$21,261 debt per cap in 2000.
$93,946.20 debt per cap in 2023.
Posted on 5/17/23 at 4:31 pm to meansonny
quote:
You are making an argument based on debt per cap?
No.
Posted on 5/17/23 at 5:05 pm to TUman
quote:
The FED must go!
People always spew this and don’t really understand the repercussions if that happened. The economy had recessions more often and more extreme before the Fed came along.
This post was edited on 5/17/23 at 5:09 pm
Posted on 5/17/23 at 5:08 pm to Shepherd88
quote:
A lot of people can’t understand that the economics and accounting for a country are not the same as for the individual.
Me included
Posted on 5/17/23 at 5:29 pm to TUman
quote:
Default will happen sooner or later.
disagree, our currency would become worthless before we actually volunteer ourselves to kill it. We can print until the money is worthless, inflation is sky high and keep paying dollar denominated debt.
We are pretty dumb, but I don't think we are that dumb. We will always choose the slow death.
This post was edited on 5/17/23 at 5:36 pm
Posted on 5/17/23 at 6:24 pm to jamiegla1
quote:
how is increasing the debt good?
It's not. Fiscal responsibility is good, but we don't force politicians to abide by that.
Posted on 5/17/23 at 7:53 pm to Aubie Spr96
There have been over 2 dozen government shutdowns over the last few decades. They shutdown non-essential functions, but the essentials keep going.
I think that government is afraid of people realizing just how much non-essential stuff is draining our pockets and economy.
I think that government is afraid of people realizing just how much non-essential stuff is draining our pockets and economy.
Posted on 5/17/23 at 8:10 pm to Shepherd88
And why is everyone convinced recessions are bad and not necessary.
You can’t fix an overheated economy with more printing/QE. The FED must go! DJT WILL DO THE JOB! The wheels are already in motion. The next Fed intervention may be ticket.
You can’t fix an overheated economy with more printing/QE. The FED must go! DJT WILL DO THE JOB! The wheels are already in motion. The next Fed intervention may be ticket.
Posted on 5/17/23 at 8:43 pm to TUman
The fact that the American public made a mass run on toilet paper is all I need to know.
Posted on 5/18/23 at 8:04 pm to Aubie Spr96
Monthly revenue is like 8x interest on debt.
Refusing to increase debt ceiling does not mean default is necessary.
Cutting all government spending is however.
Refusing to increase debt ceiling does not mean default is necessary.
Cutting all government spending is however.
Posted on 5/19/23 at 9:37 pm to Aubie Spr96
I’m all for defunding the shite out of this fake government.
Posted on 5/20/23 at 5:02 pm to meansonny
quote:
Defaulting would ruin the economy
Fact.
Can’t help but wonder how circumstances might be different if election integrity was not a problem.
Posted on 5/20/23 at 5:14 pm to Privateer 2007
quote:
Monthly revenue is like 8x interest on debt. Refusing to increase debt ceiling does not mean default is necessary.
This.
Default isn’t on the table without political and financial malpractice.
Posted on 5/20/23 at 9:19 pm to Privateer 2007
quote:
Monthly revenue is like 8x interest on debt.
Exactly. FedGov could continue to pay the debts (and hence not default), they just might have to stop sending money to Ukraine, female empowerment programs in Afghanistan, cut subsidies on mortgages for people with low credit scores, etc.
It's all choices.
Posted on 5/21/23 at 6:13 am to Aubie Spr96
quote:In theory it can raise cost of carry which, given our fiscal situation, would be a real problem.
Can anyone explain why defaulting would be bad?
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