Posted on 07/29/2013 6:59:43 AM PDT by Laissez-faire capitalist
As long as the interest payment - around $475 billion dollars over 12 months - of the federal debt outstanding (around $17 trillion dollars) is made, then a default can be averted; Hence, no need for a shutdown if the current revenues are allocated to make the interest payment(s) first.
After that, current revenues would then cover Social Security payments, Medicare, Medicaid, SNAP benefits, unemployment benefits, and the rest would cover around half of the $580 billion dollars currently being called for, for military spending. And thus, we would need to borrow absolutely no more than $400 billion - and that amount would give the United States some wiggle room. There is no need to borrow another trillion dollars, much less $800-900 billion dollars.
Would ObamaCare be funded? No, but all of the aforementioned would be covered - and a gov't shutdown would be averted. Were a shutdown to occur, it would be Obama's fault, as he himself has said that Big Business will be exempt from Obamacare, but the little guy won't. Hardly fair to average Americans.
If we keep heading the way we are, in a few years the interest payment WILL be a trillion dollars.
What say you?
If the gummint would only spend its money like a drunken sailor (i.e. until the pockets are empty), we would be OK.
If interest rates stay at 0%. If it goes up to say 4%, we're in deep doo. The trigger will be when the dollar loses reserve status. The 2008 crisis will look like a spring rain compared to the shit storm headed our way.
You mean I can get by just paying the interest on my mortgage and the won’t foreclose. At my age I can do that till I die then who cares.
—— If interest rates stay at 0%. If it goes up to say 4%, we’re in deep doo. The trigger will be when the dollar loses reserve status. The 2008 crisis will look like a spring rain compared to the shit storm headed our way. ——
So what happens then? Is the federal debt written off? Or just a portion?
If the dollar loses reserve status, I think we will see significant devaluation of the dollar. (25%??) All of non-value based parts of the economy that are fueled by debt creation and stimulus spending will grind to a halt. Our economy could shrink by half. Eventually, I think we default on the debt because we won't be able to service it. Whether that results in blood shed depends on who is left holding the debt when it happens.
Our society is like a woman in labor. One may wish to avoid the painful delivery, but that is not an option. The collapse and the default are coming.
And what rough beast, its hour come round at last,
Slouches towards Bethlehem to be born?
Just get a reverse mortgage, that way when you die the Bank can foreclose and your kids don’t have to pay any inheritance tax.
Cause you blew it all...
The key to fixing the budget is to put Americans back to work.
And we can do that by raising tariffs on imports, that will drive industry back to the U.S.. It will also give the government a source of revenues until American industry is back on it’s feet.
The longer we wait the harder it will be to turn the ship.
The key to fixing the budget is to put Americans back to work.
And we can do that by raising tariffs on imports, that will drive industry back to the U.S.. It will also give the government a source of revenues until American industry is back on it’s feet.
The longer we wait the harder it will be to turn the ship.
Um, isn’t it Law already that certain things MUST be paid first (aka deficit or the like)?
Course, if he didn’t have the Fed creating funny $$, Congress may be bound to its rightful size.
Lastly, from my last look...a 1913 $1 is ‘worth’ ~$25 today. Talk about deflation built-in!
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