Killing the US with debt!

channels.netscape.com...

Now, perhaps I've had my head in the sand, but I was aware of them raising the debt limit only once before, not twice as is stated. This would mark the third time in as many years! With an approx. $10.9 Trillion US GDP in 2003, our total debt accounts for over 70% of annual GDP. However, our annual debt at $400B accounts for only 4% of our GDP. What do you all think this means for the US economy in the long run? I don't believe that any household or corporation could continue operations with this level of debt.

It is very simple this President is disregarding the deficit, with the tax cuts and the money used to finance Iraq and the rebuilding of Afghanistan he is allocating money that US does not have right now, so it is going to catch up eventually, anybody that does math can figured that out. You can not spend indefinitely without any income coming in.

We do have income coming in the form of $10.9Trillion in GDP annually. Like I said before, our current annual debt is only 4% of our annual income, if you will. It's our long term debt that is 70% of total annual GDP. I'm convinced that we can afford to carry this short-term deficit spending given the goals that we are trying to accomplish, but I'm trying to look at the bigger picture... the overall debt and what that means to the US dollar and the economy in the long run. Would you want to invest in a company that is so debt intensive overall?

I remember reading that the US was not going to collect some debt owed from certain countries if they participated in the war. The interest alone that could be collected on these debts is incredible.

This is the same policy that drove all of the businesses that Bush was associated with into bankruptcy: the man has no concept of a budget. Money is there to spend, and who cares about the deficit. He would, if he could, cut taxes heavily (to make himself popular) while increasing social programs (to make himself popular.)

He has no idea of where money comes from because (as columnist Molly Ivins says) "he was born with a silver foot in his mouth." The man never *had* to work for a living or to hold a job he despised just to put food on the table or juggle payments to catch up on bills.

Consequently, he really doesn't understand what he's done in spending us into an unprecedented deficit or what the long term bad effects will be on us.

I heard just yesterday that the United States spends double on AIDS treatment and prevention as the rest of the world combined, yet US AIDS cases only account for 7% of the total AIDS cases in the world! We are pretty dog-goned generous country with things like this... debt forgiveness, economic aid, military aid, industrial aid etc... And in the end, we are villianized around the world. Keep in mind that we are doin g these things on the blood, sweat and tears of the US tax-payer!

We do have income coming in the form of $10.9Trillion in GDP annually

Where do you get this from?

And in the 80s the bushes sold one of their companies to stay away from bankcrupcy.

Kozmo, this brings us back to your other tax post. What would the gov't do without the money they collect from taxes?

Originally posted by kozmo
I heard just yesterday that the United States spends double on AIDS treatment and prevention as the rest of the world combined, yet US AIDS cases only account for 7% of the total AIDS cases in the world! We are pretty dog-goned generous country with things like this... debt forgiveness, economic aid, military aid, industrial aid etc... And in the end, we are villianized around the world. Keep in mind that we are doin g these things on the blood, sweat and tears of the US tax-payer!

actually, while giving more in real terms, the US consistently comes in last in rankings of foreign (non-military) aid as a percentage of GDP. the us taxpayer pays less than anyone else in the western world on assistance to other countries, proportionally. the majority of his taxes go towards military funding.

here's one cite (from the OECD): www.globalissues.org...

also, here's a link to a CRS report which describes the (generally positive) effects of reducing the national debt: budget.senate.gov...

-koji K.

[edit on 15-7-2004 by koji_K]

www.cia.gov...

kozmo,

The money the US used for Aids abroad is to buy drugs made in US.
I still don't get about the $10.9Trillion in GDP annually, and the last time I saw the 2005 budget was a lot more money for the defense and rebuilding.

koji_K, you are right.
The money US alocate to help abroad is not only to be used for Aids but it include other type of problems also.

Ok Supa... What would the US do without all of those taxes? Spend less! In all seriousness, I understand what you are saying, however I feel that an unfair balance of said taxes are paid by individuals and not corporations. In fact, I had heard somewhere (I will serach for a link) that Pepsico has not paid US taxes in over a decade!

Koji- you are right! Thanks for the informative link. As a percentage of GDP we do contribute the least, however as a per capita comparison, we are somewhere in the middle.

Originally posted by marg6043
I still don't get about the $10.9Trillion in GDP annually, and the last time I saw the 2005 budget was a lot more money for the defense and rebuilding.

Check out my link above and scroll down to the economic information.

Originally posted by kozmo
Ok Supa... What would the US do without all of those taxes? Spend less!

In a perfect world that would be great, but as the super-power of the world, we have to lead and that takes a s***load of money.

I agree with you whole-heartedly that we need to spend a ton to remain at the top of the heap. It's the old adage of "It takes money to make money." However, wouldn't you agree that we are being disproportionately taxed to do that? Wouldn't you agree that other developed nations could afford to step up a little and contribute more? I'm sick and tired of everybody running to the USA for help and then slamming us when they don't need us. There needs to be some balance here... like with welfare. If you continue to simply hand out money to people who need it but are unable or unwilling to secure their own funds, you create a state of dependency where you're never contributing enough.

Ok this my interpretation, I am not an accountant,

$10.9Trillion in GDP annually, but this is affected by,

The stock market,
The war in Iraq,
Major corporation�s dealings,
Unemployment,
Rapidly rising medical and pension costs of an aging population,
So is fair to say that it fluctuated.


[edit on 15-7-2004 by marg6043]

I agree with every point. Just imagine if you could keep all the money you made! I think what bothers me the most about paying so much is that it's being used to support others. How about me?!!!

I have a middle class salary and I feel like a lower class citizen after all is said and done. Living in nyc isn't exactly cheap though, but the pay is higher compared to other localities.

I hear Sweden has the highest income taxes, but they don't have to pay for things like healthcare, so it kind of evens out.

Here is a very good decriptor for GDP...

www.advfn.com...

And, yes, it does fluctuate but has has a trend of upward growth for the past several decades. This can be attributed to an increase in productivity, i.e. producing more goods and services with less cost and overhead.

Thanks for the link, the last time I had a class in economics or whatever they called now was back in 1980, and I was not very good at it.

Like marg said the US give a country 100 million, then that country buys drugs from US companies therefore giving the money straight back, sometimes with interest.

Also I firmly believe AIDS was created in an lab, not from Africans who have been there for thousands of years or gay people who again have been there for ages. People think AIDS came from a group of people all of a sudden. Thousands of years then all of a sudden AIDS just appears out of thin air one day. AIDS was made. A good book is 'Behold a pale white horse'.

This next sentance might sound far out but hey! If I was to make a disese that spreads with our strongest natural instinct or blood contact, then I patanted the drugs which would cure them, I could become one of the richist companies in the world!!! Its just a theory, just a thought.

sorry for going off topic but I thought I had to post that about AIDS and its funding.

[edit on 15-7-2004 by 7th_Chakra]