What are we going to do with the national debt?

This is really scary:
1)Our economy is going down
2)Our currency has been inflating since the 50s.
3)Our government continues to spend money we don’t have, by 1.7 billion dollars per day
4)We have a debt of $7,441 billion dollars
5)Each American shares $25,257.95 of this pie.
6)Canadian dollar is catching up
7)People think lower taxes is the answer
8)Middle class gets screwed every election
9)Education is more expansive than ever
10)People with out health insurance own the debt for life.
11)America is dependent on foreign investments.
12)Foreigners have more, buys more U.S. Treasury bonds than Americans.
13)Japan and China has nearly 50% of total U.S. Treasury bonds@!
14)Generation X... what to do?
15)What if foreigners stop buying U.S. bonds?
16)Our economy is bubble about to burst.
17)Some people think Bush can solve these problems, or they don’t know these problems exist.


Is it me or we are just screwed?



[edit on 22-10-2004 by John bull 1]

So long as the Bush administration can look after cronies, nothing else matters. They can retire to greener and safer pastures beyond the boundaries of mainland US.

Unless, of course, due process is followed and the key players are placed on criminal trial, imprisoned, and have their assets frozen to repatriate profits and funds to their rightful owners.

Usually the Republicans are for business but for some reason the president we have now is not hiding the fact you can see it in his vice president cheney and how his is manipulation of business contracts to benefit a company in which he has stocks holdings.

The deficit will be pass to our children and that is our legacy to them.

[edit on 073131p://555 by marg6043]

Knowing.. how we care more about the deficit, rather than debt.
Ok, we sell bonds to Asia, yet not much people know it.
The deficit between U.S. and China, while China is the second biggest bond buyer, doesn’t that sound like a conspiracy?

I think we are on a path of self-destruction.

But it depends on your concept of "we" and "self".

The Bush administration players have no interest in responsible fiscal management or economic stability or growth and "distribution" of wealth.

They are the most corrupt, cynical, self-serving group to have ever occupied the corridors of power in the US.

I think if more American's would invest in Treasury Bills (instead of companies that are rooted in foreign countries) , and take responsibility for their own debt and deficits,... that the government might actually be inclined to listen more to the wishes of the 'local' 'shareholder's'. Right now, much of the US government's debt's and deficits are willingly financed by foreign countries.

Bush is running your country in the same way he ran his failed businesses... he's runnig it into the ground... problem is, he doesnt have daddys money to help him out

Inhotep:

I agree that the economic situation is very dire.

The DEBT situation you bring up is one half of an economic "perfect storm" happening right now.

Here is some more information to chew on OIL: Conditions Ripe for Recession/Depression?.

Bumpy road ahead.

What can be done? Stop the insane military spending? Beats me.

[edit on 10/21/2004 by Gools]

Well since only 20-25% of that debt is owed to foreigners, I would say we will pay oursleves back.

When you have debts and not enoug hincome what do you do?

Stop buying magazines
Spot eating out
Stop gas wasting
Stop usin g th e Cell phon eso much
Cut the other telephon eline.
Stop using cable
Hell you do anything to reduc e your sopending firts the superfluous then then less necesary till you balance your budget.
The US economy is going the other way, they reduced taxes so they have less income ans they spend more and more... 520 billion on 2005 for Defense? COME ON...

the problems is that if the US and the Dollar go kaput, the world economy will ikely go into a Depresion...have a nice day...!

Ok edsinger your an american right (how could you be anything else)... say Bush borrowed $1 billion from you to contribute to the national debt... Despite the fact your not a foreigner, i'm sure you'd want to be paid back... regardless of where the debt came from it needs paid back... and do you think the people in your super capitalist society would really let the government not pay them back? Yeah right... half your country detests the government taking your money to help the poor, so i dont see why they would let the government borrow it and not pay it back...

I honestly think the US is just not going to pay... I mean who the # is going to make them... They'll use the money to strengthen their military, then just refuse to pay it back... I woulnt put it past a nation with thives on values of making asmuch money in whatever way you can, whether ethical or not

What makes everything worse than the current national debt is the future obligations the US owes to everyone that will be due to collect social security and possibly other entitlement programs. I remember hearing that if you counted all future obligations (I think it was just for social security but I'm not 100 percent sure) then the national debt would be over 40 trillion dollars compared to a measly 5, 6 or 7 trillion now. For anyone making payments, just imagine how you would manage if you knew your future payments needed to increase by 7 or 8 times as much.

It is a mess but at least that mess is owed back to the US. I believe either social security benefits will be cut by increasing retirement age or taxes will be increased or some combination of the two to fix the problem. Growing the economy so fast that all of our problems dissappear seems to not be in the works with the trend in outsourcing everything. It was nice to hear about problems with the budget surplus just a few years ago. We need to get back to surplus.

Not to come to the rescue of the Bush Adim. but the debt was almost as high during the regan years and was wiped out in around 4 years under Clinton. Now I am not saying we need to vote in a Democrat what I am saying is a upturn in the economy could wipe out the debt almostr over night

Damn Amuk, that is three times we agree now


You are so correct, it just needs "growth" in revenue as occured under Clinton becuase of the Reaganomics of the previous decade.

But of course edsinger growth under clinton was reagans doing, but if it was a republican and the growth occured on their watch and a democrat was the president the previous decade, i doubt you'd backdate the credit...

Anyways but relying on growth in the economy in this day and age is a little Naive i think. Dont forget there are other markets battling for a place in the global market and these countrys will take some of the economic strength from the USofA, 10 years ago the US was pretty much the only major economy, but now China is growing rapidly, as is India... you got competition now so relying on a market upswing is a bit complacent

The debt has been growing like a cancer for a very long time. It really cannot be blamed on either political party completely. It is just that neither has the balls or the integrity to make the changes required.

What do you do when in debt ? It is exactly the same for individuals or nations. Spend less, and work more, and suffer a bit as well.

Unfortunately America has become so used to cheap oil, cheap imports, and an extremely high living standard compared to the rest of the world. It would be suicidal for any politician to stand up and tell the truth.

What is now going to happen is an economic crash, depression, and a forced reduction in living standards until America once again becomes competitive in the world. That means bulk unemployment and hardship. That is the simple unpalatable truth.

Google something called fractional reserve banking...

This is by G. Monbiot for his wesite www.monbiot.com

"It is a built on a system called fractional reserve banking. Almost the entire money supply – generally, depending on where you live, between 90 and 95% of it – is issued not by the state, but the commercial banks. It is issued not in the form of notes and coins, but in the form of loans. Between 90 and 95% of the money supply, in other words, is debt."

Now the US is one of the worst where even the rich kids use credit (borrowed money) to buy things even when the have MILLIONS OF THEIR OWN DOLLARS TO SPEND... oh no we need the middle man to lend the rich guy money he dosn't even need.

And now you are concerned about the US nation being in debt?!?!