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Why are we in debt?

Discussion in 'GatorNana's Too Hot for Swamp Gas' started by Bazza, May 23, 2020.

  1. AgingGator

    AgingGator GC Hall of Fame

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    Again, I was referring to economic collapse.
    Think of the scenario where our debt is not in demand. The dollar will no longer be the reserve currency. Not a good scenario at all. Our government and the fed can only borrow from themselves for so long.
     
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  2. AgingGator

    AgingGator GC Hall of Fame

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    It may seem beyond unlikely but it really isn’t. We can only do what we have been doing because of low interest rates. At some point that party has to end.
     
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  3. tarponbro

    tarponbro All American

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    Would someone please look up budget surpluses and deficits of all the world's countries? Wikipedia has a list for 2017 that you might find interesting. It gives revenues, expenditures and percentages of countries' debt or surplus of their GDP. What I found interesting was several countries' debt as a percentage of GDP was near or exceeded the USA's, but the USA had a much larger budget than the other countries. Also, look up the debt percentages of Middle Eastern oil producing countries. They have lots of debt as a percentage of their GDP too. India, China and Russia (to a lesser extent) were also surprising to me. Socialist Germany? They had a small surplus.
     
  4. oragator1

    oragator1 Premium Member

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    The fall of any empire starts with internal rot. Demanding things we can’t afford is a good first step. Ignoring basic truths because it’s not what we want to hear goes hand in hand with that perfectly. Waste time and energy on massively overblown social issues while the rot gets worse? An awesome final step.
    If I live to a ripe old age, by the time I die this country will not be the world’s preeminent power. And it will largely be our own fault.
     
  5. oragator1

    oragator1 Premium Member

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    National Debts aren’t called, they are sitting in bonds that we have to repay.
    If we defaulted on our debt the shock to the worldwide bond market would likely rival 1929. The US bond is the cornerstone of the world bond market.

    What we should be trying to do is to balance ouR annual budget. If we did that, our debt to gdp would slowly fall over time, and a recognition that we are taking our spending seriously would keep borrowing costs low too.
    But we aren’t paying this amount off in the lifetimes of anyone on this board. It’s about best way to manage it now.
     
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  6. FutureGatorMom

    FutureGatorMom Premium Member

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    Would you say Clinton did?
     
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  7. ThePlayer

    ThePlayer VIP Member

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    If Reagan was Santa, clearly Jimmy Carter was the Grinch.
    But rather interesting that you should mention Ronald Reagan.
    Jerry Brown was backed into a corner by his own unions based on the projected growth created by Reagan in the early 1980's.
    To this day, the state is in a financial hole from those renegotiated contracts and now more than $1 trillion of unfunded pension liabilities.
    State and local unfunded pension liabilities are pegged at $5 trillion nationwide, with California accounting for about a fifth of that total.
    Blue states where unfunded pension liabilities are the worst (states like Illinois, New York, and California) are the places where there is
    the least amount of political will and interest in addressing the issue.
     
    Last edited: May 26, 2020
  8. gatorknights

    gatorknights GC Hall of Fame

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    Well I'm glad Mrs. GK and I kicked in anywhere between 7% to 13% spanning a combined 75+- years only to find out we get squat at the end of the road. We're such takers. Entitlement is a very poor word for that situation, since it was our $$$ in the first place and we didn't have a choice in the matter. Had we been able to invest said 7-13% and compound we would be rich. But fraudsters get filthy stinking rich. MAGA baby!

    But no.

    And now we would be considered spongers for a measly $1k a month. Stupidity knows no bounds.