Why The National Debt Is Good For The Country

Sundial

Class Warrior
Aug 1, 2011
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1. Debt enriches the private sector.

When the government issues debt, it spends the same amount of money as the amount it borrows. Money flows from the private sector through the government, and back into the private sector again. No money is lost or made in this process. The only net result is the creation of new treasury bonds, which enrich the private sector.

2. The debt need not be paid back.

So long as people want to hold government bonds, and the government can afford to pay the interest, there is no need for the government to pay back money it's borrowed in the past.

3. Paying interest does not make the country poorer.

When the interest is paid to Americans, there is no net result. When it's paid to foreigners, they can save the dollars or spend them on American goods and services. Either way it's good for us.

4. Debt is the basis of our financial system.

Dollars are backed by US debt. If the debt were paid off, it would result in the collapse of our economy.

5. We can't default on our debt, unless it's voluntary.

Our debt is denominated in dollars. We can create as many as we want. Therefore we can't run out of dollars to pay our debt.

6. We are not "borrowing from our grandchildren."

Should our grandchildren choose to pay down our debt (and there's no reason why they should), the payments will go to our grandchildren, not to us. (We'll be dead by then.)
 
7. When the government issues debt, it enriches the private sector, which encourages people to spend and invest. When people spend and invest, they create jobs and improve the economy.
 
7. When the government issues debt, it enriches the private sector, which encourages people to spend and invest. When people spend and invest, they create jobs and improve the economy.

We control the vertical.

We control the horizontal.

We control all that you see and hear.

THE DEBTS OUTER LIMITS
 
7. When the government issues debt, it enriches the private sector, which encourages people to spend and invest. When people spend and invest, they create jobs and improve the economy.


:lol::lol::lol: Yeah Right--:lol::lol: We see how well that's working with Obama's flood the basement economic policies--specifically his 1 trillion spent on an economic stimulus bill.

The Federal Government is currently borrowing .43 cents on every dollar it spends. Today there are 18,000 baby-boomers entering social security and medicare resulting in another 64 TRILLION in unfunded liabilities--resulting in $534,000.00 per household debt in America.

In 10 years--even after this debt ceiling bill passed we will be 21 TRILLION in debt.

$1 billion dollars.jpg

1 billion dollars--$100.00 bills stacked on palets.

$trillion dollars.jpg

1 trillion dollars--$100.00 bills stacked on palets. NOTE--how small the man is in this chart.

Just multiply the trillion dollar chart by 21 to get a real good look at our debt in 10 years--:confused:
 
I don't know I would say debt is good but there's a lot of truth in what you say. Running a business or the government of a cash basis means you bypass a lot a lot of good things, like the putting a man on moon and the interstate highway system. However, when you consistently grow debt faster than GDP growth, you will have problem. Interest will become such a large expense that it threatens your ability to continue borrowing and your credit standing with your lenders.
 
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You can't keep creating something from nothing.
Before long, something will come calling on nothing.
And if nothing never asks anything of something, then something eventually becomes nothing.
 
7. When the government issues debt, it enriches the private sector, which encourages people to spend and invest. When people spend and invest, they create jobs and improve the economy.


:lol::lol::lol: Yeah Right--:lol::lol: We see how well that's working with Obama's flood the basement economic policies--specifically his 1 trillion spent on an economic stimulus bill.

[:

When the economy collapsed at the end of Bush's second term, a lot of Tea Party types were out buying shot guns shells and Kruggerands. The reason it didn't get to that point was because of government intervention.

The government could bring the unemployment rate down even more. But it would require even bigger deficits than the ones you're complaining about now.
 
I don't know I would say debt is good but there's a lot of truth in what you say. Running a business or the government of a cash basis means you bypass a lot a lot of good things, like the putting a man on moon and the interstate highway system. However, when you consistently grow debt faster than GDP growth, you will have problem. Interest will become such a large expense that it threatens your ability to continue borrowing and your credit standing with your lenders.

There is a point where debt becomes a problem. But we're not there. Japan has twice the debt that we do, as a ratio to GDP, and interest rates even lower than ours. Our interest rates are at historic lows, and the amount of interest we're paying is manageable.

Reducing unemployment, on the other hand, would improve the governments situation, because it would bring in more income in the long run.
 
Except for the fact one of the biggest problems with running such a high debt is the US dollar gets devalued. When that happens the rest of the economy takes a major hit. People buy less since their money doesn't go as far anymore, that means less demand and less jobs, and the economy spirals from there. Even in a business running a debt isn't good, because if the economy takes even a little hit then you're screwed. But run your business on cash and you can make a killing during that type of economy, buying up all of the failing businesses dirt cheap.

Spin it any way you want, debt is never good in any situation.
 
I don't know I would say debt is good but there's a lot of truth in what you say. Running a business or the government of a cash basis means you bypass a lot a lot of good things, like the putting a man on moon and the interstate highway system. However, when you consistently grow debt faster than GDP growth, you will have problem. Interest will become such a large expense that it threatens your ability to continue borrowing and your credit standing with your lenders.

It's a bit like buying a house. Taking out a mortgage on a home you can afford is a good investment. However, if you buy a second home that you can't afford, you're shooting yourself in the foot.
 
If all thats true how come betting against the US has been the best investment advice since your Bush III got into orifice?

and Still is...if betting against you makes money maybe you arnt doing the right things.

:eusa_whistle:
 
7. When the government issues debt, it enriches the private sector, which encourages people to spend and invest. When people spend and invest, they create jobs and improve the economy.


:lol::lol::lol: Yeah Right--:lol::lol: We see how well that's working with Obama's flood the basement economic policies--specifically his 1 trillion spent on an economic stimulus bill.

[:

When the economy collapsed at the end of Bush's second term, a lot of Tea Party types were out buying shot guns shells and Kruggerands. The reason it didn't get to that point was because of government intervention.

The government could bring the unemployment rate down even more. But it would require even bigger deficits than the ones you're complaining about now.

Lemme guess, you failed both econ and history.
For starters, lots of people were buying guns when Obama got elected in the belief he was going to ban them. So I dont know what "it didnt get to that point" means. Doubtless some misinformed slur.

Gov't intervention had nothing to do with it. IN fact, it was feared gov't intervention (another AWB) that caused that.
Gov't could creare make-work jobs and technically have everyone working. But those aren't productive in any economic sense. They simply siphon money from productive work to unproductive work.
 
This econmic system would COLLAPSE if the government wasn't borrowing money.

The whole system is based on DEBT to create capital.

That's NOT to say that a government cannot overspend, of course.

It can and is HAS, too.

But the complete elimination of government borrowing would demand a complete change in the way this economy works.

Doubt me?

Fine, then you ALSO doubt ALAN GREENSPAN.

You remember him, dont you?

The FED RESERVE's Ayn Rand loving, ANTI-REGULATION DARLING OF THE RIGHT?
 
Manageable debt.

Its what every sucessful business has done.

Imagine if you were hired as a CEO and tried to run the company with a balenced budget and NEVER borrowed money.

You would be crushed by the competition.


Nearly every family in the world borrows money to buy big items like homes and cars.
 
Fine, then you ALSO doubt ALAN GREENSPAN.

You remember him, dont you?

The FED RESERVE's Ayn Rand loving, ANTI-REGULATION DARLING OF THE RIGHT?
Um...Greenspan left Rand's little cabal decades before he became Fed Chairman.

And how you can try to frame the head of the biggest fiat money monopoly in human history an anti-regulation type is beyond comprehension.

But don't let bothersome little things like facts get in the way of building a better strawman.

Capitalism Magazine - Alan Greenspan vs. Ayn Rand and Freedom
 
Well answer me this. If we can just print all the money we need why don't we do that and not collect taxes? You guys are the biggest morons I've ever had the displeasure to meet. I swear you live in the land of leaping lizards, unicorns and lollipops

Hell we can just line Pensylvania Avenue with money trees for the retardeddimocrats to take whenever and how much ever they feel like.
 
Manageable debt.

Its what every sucessful business has done.

Imagine if you were hired as a CEO and tried to run the company with a balenced budget and NEVER borrowed money.

You would be crushed by the competition.

Manageable, until the bubble economy we live in starts to inevitably deflate. Then you're fucked, and cash businesses come out looking like champions.


Nearly every family in the world borrows money to buy big items like homes and cars.

And nearly every home in America is in financial trouble because they live beyond their means. Even people making over $250,000 are complaining about making ends meet, because they buy what they want and not what they can afford. You're not making a very argument here.
 
The problem with debt is we let POLITICIANS spend money. With the raise in the debt ceiling they now have a goal, spend up to the ceiling as fast as possible them raise it again. most sane people have credit cards with available credit to use in an emergency and try to live within a budget and not use the credit. The politicians just see it as a gift to use as fast as possible.
 
Except for the fact one of the biggest problems with running such a high debt is the US dollar gets devalued. When that happens the rest of the economy takes a major hit. People buy less since their money doesn't go as far anymore, that means less demand and less jobs, and the economy spirals from there. Even in a business running a debt isn't good, because if the economy takes even a little hit then you're screwed. But run your business on cash and you can make a killing during that type of economy, buying up all of the failing businesses dirt cheap.

Spin it any way you want, debt is never good in any situation.

When the dollar falls against other currencies, foreigners buy more US goods and services, which increases employment in our country.

Inflation, on the other hand, is low, and is likely to stay low until unemployment falls. When unemployment falls, government revenues go up and spending goes down, automatically.
 

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