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If you want a realistic example, the U.S. makes $160,000 a year, owes $160,000 on a mortgage ....
Except the privately held liabilities and actual US treasuries are liabilities, while the special-issue treasuries held by SS and Medicare could (and will!) be voided without a default or a missed legal obligation.
Don't confuse the trust fund certificates with US Treasuries.
Trust fund certs held by SS and Medicare will be "voided" how exactly?
They are not debts backed by full faith and credit. They are intergovernmental debt with no public holdings. Congress can, with the simple act of congress, decide not to transfer the associated payments. In fact, just about any reform to social security involves doing just that.
Congress can barely agree to adjourn.
We KNOW they have forgotten how to pass a budget.
Trust fund certs held by SS and Medicare will be "voided" how exactly?
They are not debts backed by full faith and credit. They are intergovernmental debt with no public holdings. Congress can, with the simple act of congress, decide not to transfer the associated payments. In fact, just about any reform to social security involves doing just that.
Don't hold your breath!
If you want a realistic example, the U.S. makes $160,000 a year, owes $160,000 on a mortgage ....
Nope, the US owes about a third more than it makes, and that's not counting unfunded liabilities that private enterprises must include in their balance sheets.
So, in your example, if the US makes $160,000, it would owe about $213,000 on the mortgage. We're upside down just like so many mortgagees out there facing foreclosure.
The true debt, when accounting for all outlays, not the budget smear the federal government is allowed to perform, is roughly $56.9 trillion.
With a GDP of roughly 15 trillion.
15 trillion in current debt, devalued at a rate of about 3% per year. So in 2032 it's worth about 8T. Meanwhile, the current 15T economy should be about 23T with very moderate growth in the intervening years.
If we simply move towards a post-recession fiscal position where the budget runs a debt of a couple hundred billion per year, the level is imminently manageable. We've been here before and found ourselves with very low debt levels within 15 years.
We've been 15.6 trillion and counting in debt before? When?
Relative to the economy or using real dollar values? Yes sir. 1946.
Then IF we do this or that? If a lot of things, good sir. But IF IF is all we have, we're pretty far away from an actual solution. AND in reality we're running 1.3-1.4 trillion in deficit.
Yes, serious structural changes need to occur. I'd be happy to discuss what those might be. But the quickest way to reduce the long term deficit is to increase the mid-term growth rate - and that's a problem that can only be addressed by focusing our energies on the current recession.
In other words, the debt is a long term problem made worse by our inability to fix the very short term problem we find ourselves in.
If you want a realistic example, the U.S. makes $160,000 a year, owes $160,000 on a mortgage ....
Nope, the US owes about a third more than it makes, and that's not counting unfunded liabilities that private enterprises must include in their balance sheets.
So, in your example, if the US makes $160,000, it would owe about $213,000 on the mortgage. We're upside down just like so many mortgagees out there facing foreclosure.
Your example does not fit reality. We have roughly $16T in GDP and the same in debt. You are simply making up numbers now.
Again, if you want to discuss real world numbers, I'd be happy to do that.
On a side note, notice how Pauli ran away the moment a conversation broke out.
Typical.
yes, it was very very very wrong for president bush and his congress to go to war while cutting taxes and creating through spending increases 6 trillion in national debt during a ''GOOD PERIOD'' of the economy....it left us with 12 trillion in total national debt, a $1.4 trillion dollar deficit his last fiscal year, which made it impossible to address this recession without ballooning the debt....Worth posting again for the loony Obamabots. Talk about inconvenient truths. The Obamabots are gonna have to reboot and then come back and explain this.
Senator Obama calls Bush "unpatriotic" for adding trillions to debt www.RightFace.us - YouTube
yes, it was very very very wrong for president bush and his congress to go to war while cutting taxes and creating through spending increases 6 trillion in national debt during a ''GOOD PERIOD'' of the economy....it left us with 12 trillion in total national debt, a $1.4 trillion dollar deficit his last fiscal year, which made it impossible to address this recession without ballooning the debt....Worth posting again for the loony Obamabots. Talk about inconvenient truths. The Obamabots are gonna have to reboot and then come back and explain this.
Senator Obama calls Bush "unpatriotic" for adding trillions to debt www.RightFace.us - YouTube
save when it's good, and spend when it's bad....bush didn't follow that rule...
The true debt, when accounting for all outlays, not the budget smear the federal government is allowed to perform, is roughly $56.9 trillion.
With a GDP of roughly 15 trillion.
And you provided links and back up for this number ... where?
I never said it did. I equate it to the income of a country, since that's what it is.GDP does not equate to the market value of a home. Reality indeed.
Oh right, this magically higher number you refuse to provide evidence for. When you decide what it is, let us know.Further, our actual debt is far beyond $16T. That number, as horrendous as it is, is far below what a balance sheet would indicate if the federal government followed the same accounting standards as private business are required to follow by law.
