Let's Put to Bed the 'America Is Bankrupt' Myth

[Wiseacre]

...Everything's fine. Ignore the fact that our credit rating is on shaky grounds. There is no problem...

That's crazy and I'd thought of asking where it came from, but my guess is you just made it up to have something easy to refute.

In the mean time, let's look at the word "bankrupt." Usually the word means "adjudged insolvent by a court with property being transferred to a trustee and administered for the benefit of creditors " OK, everyone likes to bellyache about the state of the Union, but is anyone seriously saying this is what's happening?

I think Avatar is talking about the recent report from Standard and Poors, who warned that the US credit rating might be lowered if we don't find a way to deal with our rising debt.

 

[Truthmatters]

The best way to deal with it is to raise tax dollars.

It has worked great in the past.

Why the lies about what it will do when the facts are right there in history?

 

[Annie]

The best way to deal with it is to raise tax dollars.

It has worked great in the past.

Why the lies about what it will do when the facts are right there in history?

Cut all spending by 110% it's worked great in the past. Right there in history.

 

[editec]

America is bankrupt when it can no longer borrow enough money to cover its debts.

On that I agree.

 

[expat_panama]

...start with a definition of bankruptcy. It's when you owe so much you can't pay your debts...

Huh, we think alike; your definition got posted while I was posting this:

.. let's look at the word "bankrupt." Usually the word means "adjudged insolvent by a court with property being transferred to a trustee and administered for the benefit of creditors " ...

OK, sounds like you're saying the US gov't won't pay its debts and that all those T-bills being traded on the bond market are worthless. If so, I'd be happy to give you say, an entire ounce of 24 carat gold for every $100k T-bill you got lying around there.

Don't thank me, that's just the kind of guy I am...

 

[Two Thumbs]

The US is the weathiest country on earth

Bingo!

The US is a twentieth of the world's population with half the world's wealth and a about a third the world's economy. Beats the hell out of me as to why this is so flippin' hard for people to accept.

U.S. National Debt Clock : Real Time

gee, I can't imagine.

 

[expat_panama]

...The only reason we have so much debt is because Americans are lazy and don't want to make sacrifices...

You and I were on the same page up until that point.

America was founded going into debt when with John Adams setting up the first US foreign embassy in Holland for the express purpose of borrowing sums that seemed way beyond our means. Back during WWII the debt we owed equaled the level of the entire GDP and now it's less than half:

OK, so current events aren't nearly as dire as those we had in 1776 or 1943, so why the big debt now? Not laziness, Americans have always been hardworking and productive. My take is that what happened is we screwed up big time when we elected the clowns we put in Washington DC.

 

[Wiseacre]

...The only reason we have so much debt is because Americans are lazy and don't want to make sacrifices...

You and I were on the same page up until that point.

America was founded going into debt when with John Adams setting up the first US foreign embassy in Holland for the express purpose of borrowing sums that seemed way beyond our means. Back during WWII the debt we owed equaled the level of the entire GDP and now it's less than half:

OK, so current events aren't nearly as dire as those we had in 1776 or 1943, so why the big debt now? Not laziness, Americans have always been hardworking and productive. My take is that what happened is we screwed up big time when we elected the clowns we put in Washington DC.

You bette recheck that chart, it's getting pretty close to 100%, debt to GDP. Absolutely correct about electing those clowns in DC, it's one reason why I like the TP, at least these people are demanding results. They need to get their priorities straighter tho.

 

[Avorysuds]

So you agree we should go back to 90% tax rate on the 1% ?


Our corps did fine and America was on top in education and many other areas.

Things were not fine and it depends on the dates you're looking... Past that you STILL seems clueless as to what the fuck people actually paid on taxes so please just stop. No person in the history of America paid 90+% taxes, there are deductions, lots of them.

Regardless TM, cutting spending is the ONLY way we can fix the debt, you can’t even tax 3% of our way out of it and that would be with 100% inescapable tax rates on everyone over 250k… that’s also not getting into the destruction of America before the end of the year is up due to people leaving the country with their money or simply trying to make less than 250k to avoid being broke.

Cutting military won’t fix the debt either. TM, what if we went back to the spending habits of the past, do you wana play that fucking game? Ort wait, can you show (and I mean prove) how taxing the top 1% will fix a deficit that is rising like well over a Trillion dollars a year?

 

[Avorysuds]

The US is the weathiest country on earth

Bingo!

The US is a twentieth of the world's population with half the world's wealth and a about a third the world's economy. Beats the hell out of me as to why this is so flippin' hard for people to accept.

We also own the most powerful military in the history of mankind and untold natural resources. One third of the land in the US is owned by the US Govt

I guess Reagan(R)/Bush(R)/Clinton(D)/Bush(R) wunt so bad? Are you 2 about to agree that Necons pretty much made this country a powerhouse over the last 35ish years???? HmmmMMMmM?????? Owned yourself did you???

No, the country is in shit shape and necons like Bush and Obama helped run that ship into the ground.

Trickle down economics 4tw?

See, this is what happens when you can't think for yourself kids, when all your arguments are talking points... Learn from RW, don't make yourself look like a fucking moron daily =D

 

[Avorysuds]

The best way to deal with it is to raise tax dollars.

It has worked great in the past.

Why the lies about what it will do when the facts are right there in history?

Prove it...

Me, we, and us.. Have, can and will if needed again prove that cutting is the only way to "fix" the debt.

So, now it's your turn to make a laughing stock of yourself TM.

 

[BlindBoo]

So we are spending trillions of dollars we don't have. But we aren't bankrupt? Everything's fine. Ignore the fact that our credit rating is on shaky grounds. There is no problem.

Denial is dangerous when dealing with serious problems our nation has.

Why is our credit rating on shaky grounds. Not because of complicated mathmatical formula, but because the two parties are not seen as willing to make the needed compromise. Not the debt to GDP ratio, cooperation, or lack thereof.....

 

[Annie]

So we are spending trillions of dollars we don't have. But we aren't bankrupt? Everything's fine. Ignore the fact that our credit rating is on shaky grounds. There is no problem.

Denial is dangerous when dealing with serious problems our nation has.

Why is our credit rating on shaky grounds. Not because of complicated mathmatical formula, but because the two parties are not seen as willing to make the needed compromise. Not the debt to GDP ratio, cooperation, or lack thereof.....

Not on debt, cuts, taxes. Major fail all around.

 

[expat_panama]

Avatar is talking about the recent report from Standard and Poors, who warned that the US credit rating might be lowered if we don't find a way to deal with our rising debt.

--and when she (he?) says "everything's fine" I worked to get us focused again.

 

[MaggieMae]

...Everything's fine. Ignore the fact that our credit rating is on shaky grounds. There is no problem...

That's crazy and I'd thought of asking where it came from, but my guess is you just made it up to have something easy to refute.

In the mean time, let's look at the word "bankrupt." Usually the word means "adjudged insolvent by a court with property being transferred to a trustee and administered for the benefit of creditors " OK, everyone likes to bellyache about the state of the Union, but is anyone seriously saying this is what's happening?

The country isn't because we ARE paying on the debt. Which leads to the biggie coming up: Raising the debt limit, or not. If it isn't raised at least for a limited time so we can continue paying on existing debt, then that means we will be in default, which is what happens in a personal bankruptcy. The debt we now owe is for things we've already bought, again equating it to personal bankruptcy.

Ironically, if we default on our debt, chances are we WILL become bankrupt because no other country will want to do business with us (just like trying to get a new credit card when you've defaulted on the ones you already have), investors will run, trade agreements will mean nothing, and even those countries who still have outstanding IOUs to us will just rip them up.

 

[MaggieMae]

The best way to deal with it is to raise tax dollars.

It has worked great in the past.

Why the lies about what it will do when the facts are right there in history?

Cut all spending by 110% it's worked great in the past. Right there in history.

Spending was cut and taxes were raised in Clinton's second term. After the dust settled, everyone was happy. And it will happen again. Hopefully this time, the bitter battles waged will not be forgotten and we won't get ourselves in this horrible position ever again because of don't-tax-but-spend-anyway complacency.

 

[Wiseacre]

The best way to deal with it is to raise tax dollars.

It has worked great in the past.

Why the lies about what it will do when the facts are right there in history?

Cut all spending by 110% it's worked great in the past. Right there in history.

Spending was cut and taxes were raised in Clinton's second term. After the dust settled, everyone was happy. And it will happen again. Hopefully this time, the bitter battles waged will not be forgotten and we won't get ourselves in this horrible position ever again because of don't-tax-but-spend-anyway complacency.

I know spending was cut in Clinton's 2nd term, but taxes were raised? I thought taxes were cut around 1997 or so, by the GOP Congress. I trust you've heard about all the TP fuss, you're not going to find too many big spending Republicans these days. Still a few, but a vanishing breed.

 

[MaggieMae]

Bingo!

The US is a twentieth of the world's population with half the world's wealth and a about a third the world's economy. Beats the hell out of me as to why this is so flippin' hard for people to accept.

We also own the most powerful military in the history of mankind and untold natural resources. One third of the land in the US is owned by the US Govt

I guess Reagan(R)/Bush(R)/Clinton(D)/Bush(R) wunt so bad? Are you 2 about to agree that Necons pretty much made this country a powerhouse over the last 35ish years???? HmmmMMMmM?????? Owned yourself did you???

No, the country is in shit shape and necons like Bush and Obama helped run that ship into the ground.

Trickle down economics 4tw?

See, this is what happens when you can't think for yourself kids, when all your arguments are talking points... Learn from RW, don't make yourself look like a fucking moron daily =D

I have to wonder if the country would have been in such bad shape if the big investment houses hadn't collapsed, virtually taking down most of the private sector like dominos. Would the Bush deficit been surmountable in the absence of that horrific event? Would Obama's stimulus have been necessary which infused huge amounts of capital into the private sector? I know the what-if game is fruitless, but I think there are many factors involved in the current state of our fiscal affairs that aren't necessarily the "fault" of elected officials at all.

 

[Truthmatters]

The best way to deal with it is to raise tax dollars.

It has worked great in the past.

Why the lies about what it will do when the facts are right there in history?

Prove it...

Me, we, and us.. Have, can and will if needed again prove that cutting is the only way to "fix" the debt.

So, now it's your turn to make a laughing stock of yourself TM.

I already did by providing the historical tax rates of the mid century.

The top tax rate was 90% and business still flourished and yet we had a great economy and the best schools and were considered the world standard in societal progress.

 

[code1211]

The US is the weathiest country on earth

And there are many trying to correct that.