Originally posted by Wrabbit2000
Hard Answer (and probably only working one):
The United States comes to outright embrace the word austerity for several long years with MUCH higher taxes over MUCH lower benefits.
Originally posted by LamontCranston
Thanks for the research and bring the topic for discussion.
I always have a problem with the numbers so here's a easy explanation for those like me who can't grasp the amounts.
It puts it into a much better perspective..
* U.S. Tax revenue: $2,170,000,000,000
* Fed budget: $3,820,000,000,000
* New debt: $ 1,650,000,000,000
* National debt: $16,000,000,000,000
* Recent budget cuts: $ 38,500,000,000
Let's now remove 8 zeros and pretend it's a household budget:
* Annual family income: $21,700
* Money the family spent: $38,200
* New debt on the credit card: $16,500
* Outstanding balance on the credit card: $160,000
* Total budget cuts so far: $3.85
Easier for me.
The numbers are a few months old, but the idea is still valid.
edit on 8/9/2012 by LamontCranston because: (no reason given)
Originally posted by SteveR
Lots of data, but funny how you don't address the elephant in the room. For starters, who is all that debt interest being paid TO?
The fact that the government is outlaying hundreds of billions of dollars of taxpayer money for the profit of banks is insane. It is a parasitic system by design and as your charts eloquently express the scandalous drain will only get worse.
Originally posted by queenannie38
reply to post by Eurisko2012
The fact that Mitt Romney does not seem to have very much experience related to personally being in debt and recovering indicates that he might not be up for the job.
That is one area of expertise he cannot claim with any amount of credibility...neither can Paul Ryan. That might be why they really don't have a specific plan to share with us yet. Their idea of them having it easier financially than they already do so that we can somehow, by osmosis, maybe? also do good is more along the lines of what their life experience in regard to debt and finances.
Everyone criticizes Obama for being comfortable and well-off these days...but there is evidence that backs up his claim that he's come from a less advantaged past and even into his marriage they both had student loans and it is plain that he's telling the truth if you look at his tax returns.
It is easy to manage money when you have a lot of it but it takes prudence and patience to come from behind and then pay off two student loans for upper-end college educations and then get approved for a mortgage loan for a house that cost $1 million.
I have personally experienced both ends of that spectrum although not in the degree that he has...it was easy to pay my bills when my bank account was fat.
Originally posted by okyouwin
what's the other option? Governments control the money? This would pretty much give, let's say a great deal of control to government. That don't look desirable either.
Originally posted by PatrickGarrow17
reply to post by Druid42
The way I see it, regardless of whether the debt is due now, it can't be paid now. So it's either accept collapse or develop a plan that realistically addresses the problem, which inevitably would be a long term solution. Unfortunately, people and politicians tend to prioritize short term favorability.
I think significant political progress is generally made by idealists, even if their thinking is delusional to an extent. Take the founding documents, for example. Many ideals were put on paper back then that weren't a true part of society at the time.
I think you sum up a very large part of the problem, right there. The U.S. can't pay this debt and it's become exponential. However, the world cannot afford to even make major jokes about the U.S. defaulting because the world would crash harder than we would. After all, in the end, we are among 4 or 5 nations even capable of 100% self sustaining production for our own populations.
Originally posted by Druid42
reply to post by okyouwin
But Wrabbitt's charts show it all. There's no recovery. Crash and burn time.
There's no more bailouts either. Aye?
Here's another question: If the USA can't pay it's bills, what happens to the global economy?
It's private debt that matters most. There is about $24 trillion in consumer and business debt held in the United States today and this dwarfs the federal debt, money supply, and the nation's GDP.
So as a predictor of future crises, we suggest that private debt growth rates combined with the absolute level of non-government, private debt are the two most important factors to flag.
Originally posted by Wrabbit2000Under current 1+ trillion deficits? We're probably talking upwards of 50% cuts to really see the debt number start to shrink...then several years of living at that level.