• If you are having problems logging in please use the Contact Us in the lower right hand corner of the forum page for assistance.

Several Inconvenient Truths About The Debt Ceiling

hypocritexposer

Well-known member
Joined
Apr 12, 2008
Messages
24,216
Reaction score
0
Location
real world
Not one penny of US debt has been repaid for 51 years: the last time US government funded debt actually decresed on a year-over-year basis was 1960

97% of today's funded debt has been accumulated since August 1971 - the end of the Bretton Woods era by Nixon, and the terminal delinking of all fiat currencies from any and all hard assets, ushered in the era of modern-day hyper-debt insolvency

Obama projects 2.5% Fed Funds rate in budget calculations through 2020. Average Fed Funds rate since 1980: 5.7%; Since 2008: 0.00%, If average 5.7% rate was used, projected US deficit would increase by another $4.9 trillion by 2020

Obama projects 4.2% growth rate over next 3 years. If a normal growth rate of 2.5% is used, deficits would increase by another $4 trillion by 2020

The US government borrows 40-50 cents for every dollar it spends. A balanced budget would mean cutting government spending in half.

Implementing a balanced budget would not reduce current debt outstanding. It would merely stop it from growing.

Over the past three fiscal years US debt grew by over $1.5 trillion per year: this is more than three times the record annual debt increase in any previous year in US history

Last night deficit reduction targets were cut from $4 trillion to $2 trillion over the next decade, in exchange for a $2.4 trillion debt ceiling hike, which will last the Treasury until the next presidential election. Said otherwise, the Treasury needs to fund a $2.4 trillion hold over the next 15 months. Over a decade this come to $20 trillion: ten times more than the proposed deficit reduction.


And the most inconvenient truth of all:

The Global Financial Crisis (GFC) is said to have been precipitated by the Lehman failure in 2008 which froze inter-bank lending on a global basis and almost brought down the system. It is said to have been prevented by a massive and global increase in new money creation. In reality, had economic nature been left alone to take its course, there is a good chance that the world would be fast emerging from its financial black hole by now. At a minimum, most of the malinvestments would have been discounted to the point where they would no longer act as a dead weight on future savings and investment.

Economic “miracles” (so-called) have happened before. The US emerged from a deep recession in 1920-21 because the government and the central bank did NOT interfere. Germany emerged from the actual physical rubble of WW II for exactly the same reason. So, to a lesser extent, did Japan. In all these cases, debts which could not be repaid were not held on life support by central banks, they were written off. In all these cases, creditors took very severe “haircuts” indeed while many debtors literally had to start again from scratch. In all these cases, the LACK of government impediments or government largesse meant that a recovery took place in a much shorter time frame than would otherwise have been the case.

Economic distortions today are HUGELY bigger than they were then. That means that the recession will be deeper and the recovery phase possibly longer. But until it is allowed to begin, there is no way out.


http://www.zerohedge.com/article/several-inconvenient-truths-about-debt-ceiling-and-deficit-reduction
 

hypocritexposer

Well-known member
Joined
Apr 12, 2008
Messages
24,216
Reaction score
0
Location
real world
Faster horses said:
Don't the liberals READ???
Surely this information was available to them and to
everyone that is supposed to be serving the people of this
great nation.

This just makes my blood boil.
What a mess.


All through the Bush year's, spending was of great concern to Liberals, now.....not so much.


Just look at how much OT used to rail on Bush for spending, now he advocates further spending.
 

hopalong

Well-known member
Joined
Nov 12, 2006
Messages
8,019
Reaction score
0
Location
Az.
Even spend $7 mill for internet service is ok in oldtimers mind as long as it is obama doing it.

EH oldtimer?
 

Latest posts

Top