This Is One Scary Clock

[Schneed10]

Originally Posted by Angry

Even the guys that know about economics don't know squadoosh about economics.

Edit: You are right I know less than most. At this time I am just going to refrain from making any more comments about the world financial clock, our national debt or economics. Ignorance is bliss and at this point this stuff doesn't scare me. Maybe it should but honestly I don't care.

If you're going to be blissfully ignorant, just refrain from voting so you don't contribute to the country's problems.

[KLHJ2]

Originally Posted by Schneed10

If you're going to be blissfully ignorant, just refrain from voting so you don't contribute to the country's problems.

There are so many other issues that I am not ignorant about. I pick the ones that matter most to me and I still vote. Even the Almighty Schneed cannot care about absolutely everything. Everyone is blissfully ignorant about something.

[firstdown]

Originally Posted by Schneed10

If you're going to be blissfully ignorant, just refrain from voting so you don't contribute to the country's problems.

You mean like the bums off the street and the people the dems have to teach how to vote that they bus in for each election. LOL

[Hog1]

just..............checking

[BleedBurgundy]

Here's a stupid question, but I'm going to ask it anyway. What happens if the US just says, we're not going to pay anybody and anyone who has a problem with that can talk to the Department of Defense? Is our GNP insufficient to pay for our various programs, if you take all lending out of the picture?

[CRedskinsRule]

Originally Posted by BleedBurgundy

Here's a stupid question, but I'm going to ask it anyway. What happens if the US just says, we're not going to pay anybody and anyone who has a problem with that can talk to the Department of Defense? Is our GNP insufficient to pay for our various programs, if you take all lending out of the picture?

This is basically what the deficit is. We are spending more than what we take in, hence we borrow to make up the difference. And some reasonable level of deficit spending is not an awful thing, certainly we expect that our country will not suddenly lose it's ability to produce wealth, which is why other countries are willing to lend to us in the first place. The debatable question is what is a reasonable level of deficit spending. And should the country ever be forced to balance its books, even if its only every couple years.

If we did as you suggest, and certainly we could, it would change our role in the world. Do you think anyone would trust the US dollar, buy US goods, or believe that our military was defensive in nature(not that they all do now, but I am speaking of countries like the EU/Japan, those who treat us as good faith partners).

So even though we could, we shouldn't.

[Schneed10]

Originally Posted by BleedBurgundy

Here's a stupid question, but I'm going to ask it anyway. What happens if the US just says, we're not going to pay anybody and anyone who has a problem with that can talk to the Department of Defense? Is our GNP insufficient to pay for our various programs, if you take all lending out of the picture?

It's not dissimilar to someone deciding not to pay back a student loan. You can do it, but your credit will take a major hit, and any time you want to borrow money for something ever again you'll pay a much higher interest rate.

If we blow off China, the next time we need to borrow money from someone (and we will) we'll have to pay a much higher interest rate. It would crush us in the long run.

The only way we can go without borrowing money from people is if we cut governmental spending to the point that we're no longer running a deficit. Which is a lot.

[BleedBurgundy]

Originally Posted by Schneed10

It's not dissimilar to someone deciding not to pay back a student loan. You can do it, but your credit will take a major hit, and any time you want to borrow money for something ever again you'll pay a much higher interest rate.

If we blow off China, the next time we need to borrow money from someone (and we will) we'll have to pay a much higher interest rate. It would crush us in the long run.

The only way we can go without borrowing money from people is if we cut governmental spending to the point that we're no longer running a deficit. Which is a lot.

That's along the lines of what i had assumed, but I know nothing about macro economics. So, given that defaulting isn't a legitimate option, when do we put the breaks on spending? Always kills me that the gov operates like a teenager with their first credit card... Anyway, thanks for the info.

[Slingin Sammy 33]

Originally Posted by BleedBurgundy

That's along the lines of what i had assumed, but I know nothing about macro economics. So, given that defaulting isn't a legitimate option, when do we put the breaks on spending? Always kills me that the gov operates like a teenager with their first credit card... Anyway, thanks for the info.

Hopefully the American people put the breaks on in fall 2010 by voting fiscal conservatives into office and the Republicans regain control of the House at a minimum.

P.S. I know many of the current crop of Rs has been anything but fiscally conservative so hopefully they get the boot in the primaries (unlikely).

[Schneed10]

Originally Posted by BleedBurgundy

That's along the lines of what i had assumed, but I know nothing about macro economics. So, given that defaulting isn't a legitimate option, when do we put the breaks on spending? Always kills me that the gov operates like a teenager with their first credit card... Anyway, thanks for the info.

Gotta put the brakes on spending ASAP. That involves cutting wasteful programs, extending the Medicare and Social Security ages to 67, etcetera.

Need to get new administration and new congress who won't spend. Don't care if they're Dems or Reps. Just spend less.

[firstdown]

Originally Posted by Schneed10

It's not dissimilar to someone deciding not to pay back a student loan. You can do it, but your credit will take a major hit, and any time you want to borrow money for something ever again you'll pay a much higher interest rate.

If we blow off China, the next time we need to borrow money from someone (and we will) we'll have to pay a much higher interest rate. It would crush us in the long run.

The only way we can go without borrowing money from people is if we cut governmental spending to the point that we're no longer running a deficit. Which is a lot.

Now your catching on. Here is the answer to the problem.

[firstdown]

Just about all people in the US if they own a home run on a deficit but that is usually just a 2 to 3 times our anual income. The problem here is that the goverment seems to always run in a deficit and at some point it has to stop.

[Monkeydad]

I'm surprised it didn't just explode when President Obama signed his Spending Package.

[Trample the Elderly]

Government debt = future taxes.

[CRedskinsRule]

Saden, can you please explain to the above posters how the deficit is an imagined problem, and that we are free to spend forever and ever amen.

Thanks.