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US Debt Ceiling
- Thread starter BradK
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Knobby22
Mmmmmm 2nd breakfast
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might aswell just raise it to 20 tril and be done with it...for a year or two
As long as taxes can't be increased to the top earners and a war is going on, there is no alternative.
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at some point it has to stop. they can increase taxes all the want, it wont do anything. sure it will buy them sometime, but thats about it. they have too much debt, it has to deflate. governments account for some staggering amount of a nations spending(i cant remember the figure but its up over 25%) meaning that if they cut gov spending too much the country will fall into recession anyway. you cant have the best of both worlds.
they're in trouble, and the end result no matter how it happens is going to be disastrous for everyone.
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That catch-22 situation is nicely illustrated in the easy to understand video below:
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Take a look at: http://www.usdebtclock.org/. Also take a look at "About" and "Money/Banking History".
As you can see, the US Govt debt is approx $15T out of a total debt of $56T.
You do realise that the US Federal Reserve is a private institution?
A question: why should a government have to borrow money at interest from a private institution when it once created its own as it did 100 years ago?
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You're preaching to the converted.
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thanks for the vid tyler, exactly what i was talking about. european govs are in the same boat at the moment(only with not qutie as much debt). people are arguing that its not going to happen, and to those i ask to present a plausible working solution to prevent this coming collapse.
one good point the video points out also is that its not guaranteed to happen next month(unless something big happens out of the blue that no one is ready for eg lehmans) but it may very well take another year or two. everyone is doing everythign they can to prevent it, which is causing it to unfold in a very slow burning sort of way at the moment. the question is will there be a point at which the slow burn turns into a bush fire, or if they will be able to slow burn for 10-15 years all the way to the bottom of this mess.
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Here's an interesting, rosier view on US debt by nobel laureate Paul Krugman
http://www.nytimes.com/2012/01/02/opinion/krugman-nobody-understands-debt.html?src=me&ref=general
Seems to be saying it's no big deal, as long as you have growth...?
http://www.nytimes.com/2012/01/02/opinion/krugman-nobody-understands-debt.html?src=me&ref=general
Seems to be saying it's no big deal, as long as you have growth...?
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this man just seems ignorant, and has overlooked alot of important factors.
but hes right, growth would see the US out of their debt woes, but where is the growth coming from?
greggles
I'll be back!
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The US economy is on a knife's edge as White House negotiations to raise the debt ceiling reach an impasse. Republicans want guarantees of spending cuts and the Democrats want it raised without conditions.
It's hard to know how long this standoff will continue but with a default potentially now only weeks away, global markets are now primed for increased volatility.
It's hard to know how long this standoff will continue but with a default potentially now only weeks away, global markets are now primed for increased volatility.
Debt ceiling crisis looms as talks end with no deal in sight
We break down both sides' strategies as talks between Joe Biden and top Republicans ends with no progress.
www.bbc.com
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Ceilings are made to be broken.
All blue sky past that ceiling. ??
Weren't we discussing this just late last year?
All blue sky past that ceiling. ??
Weren't we discussing this just late last year?
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Why have a debt ceiling when it just going to be lifted at the very end ?. I don't understand why politicians have to create unnecessary drama and chaos with the market. Just keep borrowing money to infinity and never have to pay it back.
US national debt will be astronomical soon and it doesn't seem to matter
US national debt will be astronomical soon and it doesn't seem to matter
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The clock is still ticking LOUDLY towards June 1st. That is the day that theoretically the US could be unable to pay its bills. The consequences for world economic markets would be catastrophic.
As usual everyone believes something will be done soon by someone to ensure catastrophe doesn't befall us all.
The markets are getting decidedly edgy at the moment. Lots of red. I think by Friday unless there is serious clear progress there will be mass movement to risk-off mode ahead of the weekend. So maybe this is the time to sharpen the pencils and see how the mayhem of a sharply retreating stock market can be corralled ? (Won't be me..)
And then we can plan on coping with the unthinkable if the pieces don't fall into place.
I fear that this time there are too many people who are prepared to push the US economy over the default cliff. Donald Trump is certainly one of the strongest proponents of No Surrender for the Republicans
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Our market is 80 points down and falling.
As usual everyone believes something will be done soon by someone to ensure catastrophe doesn't befall us all.
The markets are getting decidedly edgy at the moment. Lots of red. I think by Friday unless there is serious clear progress there will be mass movement to risk-off mode ahead of the weekend. So maybe this is the time to sharpen the pencils and see how the mayhem of a sharply retreating stock market can be corralled ? (Won't be me..)
And then we can plan on coping with the unthinkable if the pieces don't fall into place.
I fear that this time there are too many people who are prepared to push the US economy over the default cliff. Donald Trump is certainly one of the strongest proponents of No Surrender for the Republicans
..................................
Our market is 80 points down and falling.
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Do you like to see huge numbers on all sorts of issues rapidly ticking upwards ? Debt, mortgages, employment, credit, State Debt, personal debt, international debt, Debt last year last decade, last Century ? Ultimate doom scrolling really
Check out this site.
Check out this site.
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now from memory the US had this problem ( in the last thirteen years ) they used all sorts of measures taken , stuff like some government workers placed on unpaid leave and squeezed through about a month of stalemate ( after the deadline )The clock is still ticking LOUDLY towards June 1st. That is the day that theoretically the US could be unable to pay its bills. The consequences for world economic markets would be catastrophic.
As usual everyone believes something will be done soon by someone to ensure catastrophe doesn't befall us all.
The markets are getting decidedly edgy at the moment. Lots of red. I think by Friday unless there is serious clear progress there will be mass movement to risk-off mode ahead of the weekend. So maybe this is the time to sharpen the pencils and see how the mayhem of a sharply retreating stock market can be corralled ? (Won't be me..)
And then we can plan on coping with the unthinkable if the pieces don't fall into place.
I fear that this time there are too many people who are prepared to push the US economy over the default cliff. Donald Trump is certainly one of the strongest proponents of No Surrender for the Republicans
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Our market is 80 points down and falling.
good luck counting on that working again , or a stalemate lasting only a month ( if they have one )
BTW the US has defaulted before closing the gold window ( guarantee that the dollar was pegged to gold at a certain price )
half of what has happened since September 2019 has been 'unthinkable ' , just try to tweak your disaster strategy as best you can ( and hope you don't need it )
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Human psychology and politics.
There's a reluctance to outright acknowledge that US finances are on an unsustainable path ultimately heading to oblivion. So it's a case of "just a bit more" and repeating that cycle.
At some point the game will be up. When I won't claim to know but at some point the rest of the world loses confidence in the whole charade.
Value Collector
Have courage, and be kind.
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look at the mess they are in with a debt ceiling
many governments try to balance a budget so work towards NO nett debt most years ( often unsuccessfully )
but let's just have perpetual debt ( but try to keep it controllable ) what a recipe
just print and print and hope the world trusts you ( not to print absurd amounts )
