Why Are Politicians Not Increasing Spending?

[BakshisMouse]

Read these two stories:

Wonkbook: On debt, the conventional wisdom vs. the markets - The Washington Post

America Is Not Exceptional - NYTimes.com

As much as the politicians in Washington are telling us that doom is imminent if spending is not gutted, the risk of holding US bonds is very low:

A country that is about to default would have extremely high interest rates, and yields for its bonds would be through the roof.

Our national debt, the hawks like to point out, is $15.1 trillion. Believe it or not, that is actually manageable, especially considered as a percentage of GDP. Could it be that some politicians and pundits are exploiting this number just to advance their political goals. Make the electorate think that the reason that unemployment is 9% is those nasty welfare recipients.

Why shouldn't we try to spend our way out of this? Yes, the stimulus package passed a few years ago was ineffective, but could it be because the original one was too small and poorly designed?

To those of you who say this is totally off base: what do you think that our real interest rate is telling us about our economy?

 

[occupied]

Bonds get paid first no matter what. Our debt is one of the safest investments on the face of the earth.

 

[freedombecki]

Your thread is listed as "Why are politicians not increasing spending?"

Then you answer the question by saying hawks point out a 15 trillion national debt which you claim is manageable.

What does being a "hawk" have to do with resolving the national debt issue?

Your stated panacea is that original stimulus packages was too small and badly designed, and that we should try to spend our way out of this.

So, with no other answer that the one you want to hear, I think you may see the American people panicking at the polls and going for a debt payoff.

Spending ourselves into oblivion is what got us paying out interest-only payments to creditors with nothing left over except borrowing more money.

That is not acceptable to me.

 

[American Horse]

The Fed is keeping bond rates low by absorption. Bond buyers persist because of what's available, the US is an island of stability.

 

[freedombecki]

Bonds get paid first no matter what. Our debt is one of the safest investments on the face of the earth.

The professional people who downgraded America's repayment ability do not agree with you.

 

[occupied]

Bonds get paid first no matter what. Our debt is one of the safest investments on the face of the earth.

The professional people who downgraded America's repayment ability do not agree with you.

That so called downgrade had no effect whatsoever on the people and countries who eagerly line up to buy our bonds.

 

[BakshisMouse]

Bonds get paid first no matter what. Our debt is one of the safest investments on the face of the earth.

The professional people who downgraded America's repayment ability do not agree with you.

That was mainly because of that circus in congress that raised the debt ceiling at the last minute.

 

[BakshisMouse]

Your thread is listed as "Why are politicians not increasing spending?"

Then you answer the question by saying hawks point out a 15 trillion national debt which you claim is manageable.

What does being a "hawk" have to do with resolving the national debt issue?

Your stated panacea is that original stimulus packages was too small and badly designed, and that we should try to spend our way out of this.

So, with no other answer that the one you want to hear, I think you may see the American people panicking at the polls and going for a debt payoff.

Spending ourselves into oblivion is what got us paying out interest-only payments to creditors with nothing left over except borrowing more money.

That is not acceptable to me.

To answer your question about "hawks", according to mirriam webster, one of the definitions of that word is "one who takes a militant attitude and advocates immediate vigorous action".

By "going for a debt payoff", are you meaning that Americans would want the federal government to actually get the national debt to zero? Such action by the federal government would be impractical and unproductive.

 

[eflatminor]

Our national debt...is $15.1 trillion. Believe it or not, that is actually manageable...

Tell you what. You pay the $134,469 YOU owe first, then tell us how the debt is manageable. You wouldn't just pass this on to our children, would you? Better hurry up. The feds collect $6 billion per day but spend $10 billion. Your share is increasing rapidly.

 

[eflatminor]

Bonds get paid first no matter what. Our debt is one of the safest investments on the face of the earth.

The professional people who downgraded America's repayment ability do not agree with you.

That was mainly because of that circus in congress that raised the debt ceiling at the last minute.

Incorrect. Read the ACTUAL report from the actual credit agency...not MSNBC's take...and you'll see that the downgrade was due to too much fucking spending with no plans to reduce it.

 

[BillyV]

Bonds get paid first no matter what. Our debt is one of the safest investments on the face of the earth.

Yes, that's what GM bondholders thought as well.....

 

[grunt11b]

The Fed is keeping bond rates low by absorption. Bond buyers persist because of what's available, the US is an island of stability.

We are so stable that our credit rating was downgraded. If that's not stable, I dont know what the heck is.

 

[American Horse]

The Fed is keeping bond rates low by absorption. Bond buyers persist because of what's available, the US is an island of stability.

We are so stable that our credit rating was downgraded. If that's not stable, I dont know what the heck is.

Of course you are right about that not insignificant detail, but our economy is seen to be more reliably stable than others, and that was my meaning.

 

[tinydancer]

The Fed is keeping bond rates low by absorption. Bond buyers persist because of what's available, the US is an island of stability.

We are so stable that our credit rating was downgraded. If that's not stable, I dont know what the heck is.

Of course you are right about that not insignificant detail, but our economy is seen to be more reliably stable than others, and that was my meaning.

You are about to become a giant Greece.

Throw down a plate and go hopa!!!

I know maybe someone in Hollywood can make a movie called "My Big Fat White House Wedding".

You don't have money. What part of quizzillions in $$$$$$$$$$$$ in debt don't you get?

 

[blastoff]

Well if the morons think another stimulus is the answer after one that was too small and mismanaged, he's my suggestion. IF another stimulus is to take place, divide whatever amount it is equally among those who pay income taxes and send them each a check for whatever amount that works out to be.

Some folks will spend all of it. Others will spend some of it. That amount they don't spend will be used to pay down debt or saved and/or invested. The result will be a huge amount of money spread out through various segments of our overall economy, but this time it will be the people who paid the money to the government in the first place making the decisions as to where and how this stimulus gets spent (or, invested in Washington-speak).

 

[BakshisMouse]

For all of you mentioning Standard and Poor's downgrade on the USA's debt: these are the same people who "accidentally" downgraded France and then undid it in one day. Yes, those guys at Standard and Poor's sure are competent.

No one here has addressed how a country with such a low interest rate could be in a dire debt crisis.

 

[tinydancer]

Our national debt...is $15.1 trillion. Believe it or not, that is actually manageable...

Tell you what. You pay the $134,469 YOU owe first, then tell us how the debt is manageable. You wouldn't just pass this on to our children, would you? Better hurry up. The feds collect $6 billion per day but spend $10 billion. Your share is increasing rapidly.

I'm having an "amen" moment with your post.

It's sheer insanity that anyone thinks you have to spend more to work your way out of debt.

 

[BakshisMouse]

Our national debt...is $15.1 trillion. Believe it or not, that is actually manageable...

Tell you what. You pay the $134,469 YOU owe first, then tell us how the debt is manageable. You wouldn't just pass this on to our children, would you? Better hurry up. The feds collect $6 billion per day but spend $10 billion. Your share is increasing rapidly.

I'm having an "amen" moment with your post.

It's sheer insanity that anyone thinks you have to spend more to work your way out of debt.

It's not, actually. You know how the United States got out of the Great Depression? Massive government expenditures for World War II. The debt to GDP ratio was the highest it has ever been. However, that ratio came down when the economy grew and the government collected taxes.

 

[Charles_Main]

Read these two stories:

Wonkbook: On debt, the conventional wisdom vs. the markets - The Washington Post

America Is Not Exceptional - NYTimes.com

As much as the politicians in Washington are telling us that doom is imminent if spending is not gutted, the risk of holding US bonds is very low:

A country that is about to default would have extremely high interest rates, and yields for its bonds would be through the roof.

Our national debt, the hawks like to point out, is $15.1 trillion. Believe it or not, that is actually manageable, especially considered as a percentage of GDP. Could it be that some politicians and pundits are exploiting this number just to advance their political goals. Make the electorate think that the reason that unemployment is 9% is those nasty welfare recipients.

Why shouldn't we try to spend our way out of this? Yes, the stimulus package passed a few years ago was ineffective, but could it be because the original one was too small and poorly designed?

To those of you who say this is totally off base: what do you think that our real interest rate is telling us about our economy?

15 Trillion in Debt is not "Manageable" if you are also going to continue to add more than 1 Trillion a Year in new Debt on top of it. The Real issue is not what we already owe, it is what we are spending now. Which is way to much. 40 cents of every dollar is Borrowed, that is unacceptable. Increasing Spending is sure insanity when running such high annual Deficits, you my friend are either very Ignorant or just plain out of your mind.

 

[edthecynic]

Your thread is listed as "Why are politicians not increasing spending?"

Then you answer the question by saying hawks point out a 15 trillion national debt which you claim is manageable.

What does being a "hawk" have to do with resolving the national debt issue?

Your stated panacea is that original stimulus packages was too small and badly designed, and that we should try to spend our way out of this.

So, with no other answer that the one you want to hear, I think you may see the American people panicking at the polls and going for a debt payoff.

Spending ourselves into oblivion is what got us paying out interest-only payments to creditors with nothing left over except borrowing more money.

That is not acceptable to me.

The anti-deficit crowd were called "Deficit Hawks."

"deficit hawks" - Google Search