The Problem is Too Much Debt

The Problem is Too Much Debt

wallstreetpit.com

For the past two years or so, my prediction for the cumulative debt of the United States government over the next ten years has been in the $15 to $20 trillion range. This would more than double the current amount of government debt outstanding.

Since the events of the past few days in Washington, D. C., my prediction for the cumulative debt of the United States government over the next ten years is still in the $15 to $20 trillion range.

The most descriptive characterization of the “debt deal” that I have heard is that Congress (and the President) has just “kicked the can down the

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Ok, so here we are two days after passing the debt deal and the market is down again nearly 150pts. yesterday it fell nearly 300pts. Now, how can any reasonable person deduce that increasing the debt limit was good? I think this clearly shows that increasing the debt was not the answer. Reigning in spending is the solution. As the story states, this is the third bad policy that the Obama administration has passed, and yet he has not offered one solution. Clearly he is not the leader everyone thought he was!

wallstreetpit.com
(visit the link for the full news article)

reply to post by haarvik


Silver and gold are going up as well...

Silver has gone from 40$ /oz to currently 41.71$ /oz

Gold has gone from 1628$ /oz to 1668$ /oz

The dow is currently sitting at 11,766 points...

And this is at only 11 AM EST, still have another 6.5 hours on the market for today

When we installed a Chicago community organizer.

To lead the world's largest economy.

It was like giving a teenager an unlimited credit card.

We feel like the parents who just got the bill.

Good read. It is appalling, but you must remember, Congress had a lot more to do with this than Obama.

The most descriptive characterization of the “debt deal” that I have heard is that Congress (and the President) has just “kicked the can down the road.” ...To me, there is only one thing that ties all the different problems we are experiencing together. It is the fact that there is just too much debt outstanding today…and, this debt load extends throughout the nation (and throughout Europe). Consumers are still burdened with too much debt. So are many businesses. So are state and local governments. And, so are sovereign nations.

^^^says the author, John Mason.

Now, I don't know much about Keyensian theory, or any theory of name for that matter, but I do know that one should not spend more than one can afford. Yet there is the old chorus: You have to spend money to make money.

It seems to me that money takes on a life of its own, and it's about mathematics that only a very few understand, and can afford to gamble with.

I'm off to tell every bank I have ever dealt with that I need a "raise" in my debt ceiling, and that my grandkids will pay it off, for sure (though they are at this point still only a glimmer in an eye)....

reply to post by wildtimes


You are correct. however, a true leader would have addressed this a lot sooner and presented a plan to start the process. The fact that he just sat there and "demanded" both parties come up with a solution tells you right there he is not a leader.

Fine the republicans left us with an eye watering amount of debt from wars, unfunded programs and stupid tax cuts. It is time to fix that problem which means paying the piper. A huge step in the right direction would be to allow the tax cuts for the rich to go back the Clinton era (remember when we had a surplus that the squanderer in chief dispensed of. Streamline some programs trim some defense spending, tax appropriately at least more than Mexico or Chile -- invest in some infrastructure and things start to get back on the right track, tax more that Mexico or Chile

Unfortunately the Tea Party Treasonists would rather see the US crash and burn or they are not smart enough to see how this works, either way its bad governance.

The Job creators are not the rich -- they are the middle class - this countries economy depends on purchase of goods and services by it citizens -- squeeze them like the Tea Party insists and the whole thing grinds to a stop.

reply to post by spyder550


No, you are wrong. But then again it appears you support the banking elite by your opinion. By allowing the default to happen, we basically would have given the banking elite the finger. Sure, it would have been tough for a while but the end result would have been an far leaner and more robust country than what we have now. We essentially admitted they own us.

reply to post by haarvik


And that is the most wrong -- bizarrely ignorant thinking imaginable -- it obvious that you dont really understand what is happening here -- just nonsense -- that works at some redneck bar on Saturday nite when your arguing over who pays for the Miller Lite - it is not the way that it works in the real world, with real money. Grown-ups dont just say I am a little short this month - I'll catch you later.

reply to post by spyder550


It's obvious you don't. You can't spend your way out of debt, period. More debt does not equal less debt. We have to start living within our means and that means cutting what we spend. By allowing the debt ceiling to increase, more of our tax money is being spent to pay the interest on the loans, and not for the US!

reply to post by haarvik


The debt ceiling was not to increase spending -- it is to allow us to pay debts that the congress already signed of on. Congress went home 4000 FAA workers are asked not to receive pay and catch their own expenses -- Boehner sucks. And you still don't understand this debt ceiling thing.

reply to post by spyder550


Yes, I do. If we borrowed too much, then we cut back. It's quite simple. Bring our military home, fair tax, stop sending funds to other countries. See? Wasn't that simple? Now no increase in debt and we save money and have a leaner government.

Yes that is simple -- it is simple as getting on a 757 flying half way around the world and saying wow that was simple nothing to this flying nothing to do but sit there -- what you are saying is the same simplistic and naive attitude. None of what you say addresses anything of the complexity or the circles with in circles that is the world Nothing you say is meaningful except for shutting down the Bush wars -- and we have saved a lot of money already drawing that mess down. That is the willful ignorance that is going to screw us.

You Tea Party folks really need to look a little farther out than the ends of your own nose..

Just keep on sending your money to the top -- trust me they are partying at your expense.

And yet again, as of 11:30 EST the DOW is down 281pts. It did a small recovery yesterday, but here we go again! how long before it hits 10K?

And how the S&P has dropped 10%! All signs point to another depression!