Posted on 04/11/2011 5:55:48 AM PDT by Robert Drobot
The debt is unsustainable.
Try this:
There are more people EATING AT THE TROUGH than are paying for it. And there are MORE of them than us who pay.
YES! There is no rational basis to all this doom and gloom.
The US government has NO LEGAL OBLIGATION to make good on its social security and medicare promises. Reducing these benefits, as suggested by Paul Ryan, DOES NOT CREATE AN EVENT OF DEFAULT.
Putting our country on a path to fiscal solvency is actually not all that hard. While the urgency of doing it cannot be overstated, the difficultly is frequently overstated.
Nonsense. Debt owed to the public, the only debt we actually have to service to avoid default, is only 60% of GDP. History proves that countries can manage that kind of a debt burden without any trouble for extended periods of time.
What is unsustainable is Social Security and Medicare. But these programs be modified by statute, their benefits reduced to make them sustainable.
The doom and gloom you are preaching is neither rational nor productive.
That is simply not true.
That plan will work!
We will need to borrow 1.7 bazillion quatloos to do it, but it will work!
It beats being delusional.
Good Day!
Are you saying that even if we reform SS and Medicare and reduce their payouts, as Paul Ryan or the deficit commision proposed, we are still headed for default?
Or are you skeptical that these programs for seniors can be refored and cut sufficiently?
Both.
Too much of this economy is a ponzi scheme.
A Well hidden ponzi scheme.
As MORE people fall into poverty with this down cycle, there will be LESS tolerance for the cuts. And yes, even if the cuts Ryan has proposed occur, we are vulnerable to defaults because of credit derivatives that can still bring down the financial system in the US. Add in the FED monetizing the debt and buying Treasuries to fund the government, it is a house of cards ready to fall.
Which credit derivatives? Do you even know what a credit derivative is?
Add in the FED monetizing the debt and buying Treasuries to fund the government, it is a house of cards ready to fall.
Dude. The Fed always increases the money supply during recessions. This is nothing new.
Ah, your one the FED rent boys who think that everything will be rosy.
So why is Bill Gross betting against US Treasuries?
She really doesn't. She is good at repeating the panic.
We can’t pay back what we owe. All we pay is the interest on our debt, nothing more.
You two were warned before to knock of your stupid feud.
Last warning.
Yes, even when combined with everything else. Well, we probably would need some serious defense cuts too, and no more Afghanistans, Iraqs or Libyas. Neither the neocon nor the lefty internationalist models of foreign policy are sustainable, financially.
We will become isolationsits by necessity, not choice.
53 vs 47 percent was a number i googled a few days ago. Can’t locate it at the moment. But i did some research and found out that it’s worse. 86% of our dept are owned outside the US.
Total dept is 14 trillions [1].
External dept is 12 trillions [2].
[1] http://www.wolframalpha.com/input/?i=federal+debt+USA
[2] http://www.wolframalpha.com/input/?i=External+debt+USA
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