I know you have heard it all…..from the Right and from the Left and possibly from somewhere out of reality….but do you really understand the debt?
Maybe this will help a bit……
Did this help?
I know you have heard it all…..from the Right and from the Left and possibly from somewhere out of reality….but do you really understand the debt?
Maybe this will help a bit……
Thankyou, I found this really helpful! As an English person American economics sometimes baffles me, but now I understand the debt ceiling more! I wonder what Obama will do next. . .
You are welcome and I appreciate my UK readers….they help me understand the EU and other thinking from across the pond……I look forward to you as one of my regulars……
I fear that Obama will cave to a deal that will not let any increase of revenue for a year or more…..
Yes. It actually puts the thing very succinctly.
Just to add something to that: the INTEREST on what America CURRENTLY owes is $207bn EACH and every year (assuming you borrow NOTHING this year, or from now on). How much welfare, medicare, whatever would THAT sum buy each and every year? And all that is assuming that you don’t borrow a penny from now on and there is NO serious loss of confidence which would likely multiply that interest by a factor of two to five in a very short space of time!
If you keep on borrowing more each year than you did the previous year, then there comes a point when the amount you pay in interest on what you have ALREADY borrowed in the past equals or exceeds the amount you CAN borrow for the coming year – and then you’re done for – you’ve maxed out your credit cards (all of ’em) and gone way over your overdraft limit (a bit like Greece).
I see what you are saying…but do not forgot we have a magical mystery printing press…..and there is where I am worried…the loss of confidence and inflation comes back hard….we already have inflation just they do not count food or gas in the equation…..very convenient, huh?
As much as spending needs to be cut, revenue needs to come in. Give and take.
Spinny…yep…it is that simple….funny how morons cannot see it, huh?