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Replies: 14
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CU Medallion [73569]
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Interest on debt
Nov 4, 2016, 10:01 AM
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in 2015
Interest on the debt is now and is projected to continue being the fastest growing area of federal spending in the coming years, outpacing even Medicare or Social Security. In 2015, the U.S. spent $223 billion, or 6 percent of the federal budget, paying for interest on the debt.
For me, that would be like another car payment, just to pay off interest. That's not even including paying down anything, which the gov is not doing. It's debt is increasing 500mill to a trillion a year.
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Orange Blooded [4035]
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Re: Interest on debt
Nov 4, 2016, 10:03 AM
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its all good man. debt isnt bad. its just a matter of keeping the printing press printing.
signed- SC high school facebook coach/teacher
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CU Medallion [73569]
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they way I see it, the US debt would be like me having
Nov 4, 2016, 10:05 AM
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I think around 80-100K in credit card debt and me only paying less than minimal payments where I never decrease my debt and continue to charge out the wazoo.
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All-In [46798]
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False
Nov 4, 2016, 10:24 AM
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you can't compare the two. Micro and Macro economics are not interchangeable
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CU Medallion [73569]
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you mean b/c in macro
Nov 4, 2016, 10:26 AM
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we have no intention of ever paying off the debt?
in that sense, i agree.
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All-In [46798]
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No because there are fewer options in Micro
Nov 4, 2016, 11:42 AM
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on managing and paying off debt. There are more options at a Macro level.
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Oculus Spirit [78823]
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just wipe it clean
Nov 4, 2016, 10:04 AM
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and pretend it never happened. If we can do it for student loan debt, why can't we do it for federal gov't debt?
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CU Guru [1606]
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Re: just wipe it clean
Nov 4, 2016, 10:15 AM
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What? Like with a cloth?
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Oculus Spirit [97664]
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Maybe we can just scale up Enron again and QE ourselves
Nov 4, 2016, 10:22 AM
[ in reply to just wipe it clean ] |
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into the black? Enron used shady accounting to farm off debts and keep their balance sheets in the black and looking profitable. The Federal Reserve did the same thing with QE1/2/3 whatever. Maybe we can spin off a shell company to dump our debt, and then say we repaid it and all will be well again.
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Heisman Winner [137789]
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Orange Blooded [2429]
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Re: just wipe it clean
Nov 4, 2016, 10:56 AM
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Got some bleach bit?
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All-In [47795]
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I blame
Nov 4, 2016, 10:05 AM
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All-In [47795]
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Re: I blame
Nov 4, 2016, 10:06 AM
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All-In [47795]
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and if you think its bad now.
Nov 4, 2016, 10:07 AM
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wait until the rate goes up
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Oculus Spirit [97664]
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Maybe you can see why the Fed will never raise rates
Nov 4, 2016, 10:20 AM
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They can't. Ironically, one of the greatest dangers we face now is inflation. Want to know why TARP was just a bunch of money shuffled to the top of the economic food chain and not into people's pockets? Point is when/if our economy rebounds, there's a HUGE risk of inflation. And not hyperinflation. Hyperinflation is not needed to make our government insolvent. If interest rates tomorrow were raised to say 1982 levels of 15-16%, we could not afford to service our national debt. Those interest payments have to be serviced from income tax revenue and not more debt. Currently the government pays 2% and some change in interest on their debt. Take that to 10-11% and you can multiply that $233 billion by 5. Stick that into your budget pie chart and see if you can fit it.
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