Life After Default

[CuleokaBob]

No can do. A Constitutional Amendment isn't happening.

Service the debt
Default or bankruptcy is an option
Yes, can do
Yes, will do
ASAP

 

[kyzr]

Service the debt
Default or bankruptcy is an option
Yes, can do
Yes, will do
ASAP

The 14th Amendment says the US pays all its debts.

 

[CuleokaBob]

The 14th Amendment says the US pays all its debts.

$98,954 for owed by every single person in America. Never going to be paid off.
14.4 "Civil War Debt"
Last time I looked the Civil War is over.

Default is the best option

 

[kyzr]

$98,954 for owed by every single person in America. Never going to be paid off.
14.4 "Civil War Debt"
Last time I looked the Civil War is over.
Default is the best option

Default is unconstitutional.
Take a look at how I would pay down the Debt, adjust rates as needed:

• 1. Add a 4% Federal Sales Tax on all sales (gains ~400b/yr)
• 2. Add a 0.1%? financial transaction tax on ALL financial buy/sell transactions (stocks, bonds, derivatives, bitcoin, etc.) (gains 777b/yr)
  3. Add a Remittance Tax on all money sent out of the US (gains ~$150b/yr, see below)
• 4. Remove the cap on SS tax, and raise the ages from 62/67 to 63/68 (saves SS)
• 5. Raise the tax and co-pay for Medicare
• 6. Add a co-pay for Medicaid
• 7. So if all of the above taxes were implemented, the $1T Budget Deficit would become a $350b surplus to start paying down the $32T Debt

• Financial Transactions Tax: What You Need to Know - SmartAsset | SmartAsset

  A financial transactions tax is levied on trades made of stocks, bonds, derivatives and other financial products. It is favored by progressives.

  smartasset.com
• 

  The United States Loses $150 Billion Annually in Remittances

  Many Americans know very little, if anything, about “remittances,” (also known as “remittance payments”) and how they affect the U.S. economy. The term “remittance” refers to money earned in the United States that is transferred to relatives, friends or business associates who are still abroad...

  www.fairus.org

 

[CuleokaBob]

Default is unconstitutional.
Take a look at how I would pay down the Debt, adjust rates as needed:

• 1. Add a 4% Federal Sales Tax on all sales (gains ~400b/yr)
• 2. Add a 0.1%? financial transaction tax on ALL financial buy/sell transactions (stocks, bonds, derivatives, bitcoin, etc.) (gains 777b/yr)
  3. Add a Remittance Tax on all money sent out of the US (gains ~$150b/yr, see below)
• 4. Remove the cap on SS tax, and raise the ages from 62/67 to 63/68 (saves SS)
• 5. Raise the tax and co-pay for Medicare
• 6. Add a co-pay for Medicaid
• 7. So if all of the above taxes were implemented, the $1T Budget Deficit would become a $350b surplus to start paying down the $32T Debt

• Financial Transactions Tax: What You Need to Know - SmartAsset | SmartAsset

  A financial transactions tax is levied on trades made of stocks, bonds, derivatives and other financial products. It is favored by progressives.

  smartasset.com
• 

  The United States Loses $150 Billion Annually in Remittances

  Many Americans know very little, if anything, about “remittances,” (also known as “remittance payments”) and how they affect the U.S. economy. The term “remittance” refers to money earned in the United States that is transferred to relatives, friends or business associates who are still abroad...

  www.fairus.org

You have not addressed the root cause, Out of control spending. The more you give, the more they will spend. Example

CBO's baseline shows that out-of-control spending by the Biden administration and Democrats during just two years of one-party rule has exploded the national debt to unprecedented and truly unsustainable levels. The national debt is now projected to increase from $24.3 trillion in 2022 to $46.4 trillion by 2033.

 

[Lesh]

Just stop. Trump exploded the debt and Republicans didn’t care.

 

[CuleokaBob]

Just stop. Trump exploded the debt and Republicans didn’t care.

Moran,

CBO's baseline shows that out-of-control spending by the Biden administration and Democrats during just two years of one-party rule has exploded the national debt to unprecedented and truly unsustainable levels. The national debt is now projected to increase from $24.3 trillion in 2022 to $46.4 trillion by 2033.

You a Biden voter?

 

[CuleokaBob]

A thousand billion is equal to 1 trillion.
32 T in debt
35 B surplus
kyzr assuming a balanced budget (will never happen, and your pie in the sky plan)
How long to pay it off?

100 years
1000 years?

Never is the answer

 

[kyzr]

You have not addressed the root cause, Out of control spending. The more you give, the more they will spend. Example

CBO's baseline shows that out-of-control spending by the Biden administration and Democrats during just two years of one-party rule has exploded the national debt to unprecedented and truly unsustainable levels. The national debt is now projected to increase from $24.3 trillion in 2022 to $46.4 trillion by 2033.

You are preaching to the choir.

Riddle me this:
McCarthy acknowledged that only about 11% of the Budget can be cut. The rest is "Mandatory Spending". If Biden is putting all these migrants on Welfare, I'd cut welfare, as well as Medicaid. The "safety net" might have to get tossed.
There isn't much that can be cut.
Here is the 2021 Budget. I can't find the 2022, 2023, or 2024 Budgets
2021 Federal Budget
Outlays $4.88T
Receipts $3.86T
Deficit $1.02T

Discretionary Spending
Defense $753b
Non-defense $733b
Total $1.49T

Mandatory Spending
Social Security $1,115b
Medicare 746b
Medicaid 452b
Other 660b
Interest on Debt 379b
Total $3.39T

 

[kyzr]

A thousand billion is equal to 1 trillion.
32 T in debt
35 B surplus
kyzr assuming a balanced budget (will never happen, and your pie in the sky plan)
How long to pay it off?

100 years
1000 years?

Never is the answer

I can adjust the tax rates to generate a $500b surplus,
so $33T = ~66 years

I get your point. We are fucked because the pols totally fucked up the last 30-years borrowing $33T

If we don't raise taxes SS goes insolvent and we get ~70% of promised benefits.

 

[CuleokaBob]

You are preaching to the choir.

Riddle me this:
McCarthy acknowledged that only about 11% of the Budget can be cut. The rest is "Mandatory Spending". If Biden is putting all these migrants on Welfare, I'd cut welfare, as well as Medicaid. The "safety net" might have to get tossed.
There isn't much that can be cut.
Here is the 2021 Budget. I can't find the 2022, 2023, or 2024 Budgets
2021 Federal Budget
Outlays $4.88T
Receipts $3.86T
Deficit $1.02T

Discretionary Spending
Defense $753b
Non-defense $733b
Total $1.49T

Mandatory Spending
Social Security $1,115b
Medicare 746b
Medicaid 452b
Other 660b
Interest on Debt 379b
Total $3.39T

I agree on welfare. I partially disagree on Medicaid. As a civilized society, we need to take care of some people that do not have the mental or physical capacity to take care of themselves. I.e. mentally handicapped, crippled, etc. All able bodies that can work, should work.

 

[Lesh]

We haven’t had a balanced budget in decades.

What cracks me up is the born again debt hawks who silently watched Trump blow the debt up now are willing to blow up the entire economy … over debt.

Trump added FIVE TRILLION to it in 2020 alone (yeah I know… Covid).

Biden was also dealing with COVID and only added 3T in two years

US National Debt by Year

The U.S. national debt was over $31 trillion in 2022. In 1930, it was just $16 billion. The biggest impacts have been defense spending, recessions, and recently, the pandemic.

www.thebalancemoney.com

 

[CuleokaBob]

I can adjust the tax rates to generate a $500b surplus,
so $33T = ~66 years

I get your point. We are fucked because the pols totally fucked up the last 30-years borrowing $33T

I am not good at math

are you not leaving of a zero or two?

A thousand billion is equal to 1 trillion.

 

[CuleokaBob]

We haven’t had a balanced budget in decades.

What cracks me up is the born again debt hawks who silently watched Trump blow the debt up now are willing to blow up the entire economy … over debt.

Trump added FIVE TRILLION to it in 2020 alone (yeah I know… Covid).

Biden was also dealing with COVID and only added 3T in two years

US National Debt by Year

The U.S. national debt was over $31 trillion in 2022. In 1930, it was just $16 billion. The biggest impacts have been defense spending, recessions, and recently, the pandemic.

www.thebalancemoney.com

this conversation may be too much for your old and frail heart ?

 

[Lesh]

this conversation may be too much for your old and frail heart ?

It’s clearly too much for your weak mind

 

[CuleokaBob]

It’s clearly too much for your weak mind

Default and be done with it

 

[kyzr]

I agree on welfare. I partially disagree on Medicaid. As a civilized society, we need to take care of some people that do not have the mental or physical capacity to take care of themselves. I.e. mentally handicapped, crippled, etc. All able bodies that can work, should work.

1. Am I hallucinating or did they put a 2-year limit on Welfare at one point? (Clinton?) I don't think its there now??

2. There is no where to cut the Budget significantly, and interest on the Debt keeps climbing

 

[CuleokaBob]

1. Am I hallucinating or did they put a 2-year limit on Welfare at one point? (Clinton?) I don't think its there now??

2. There is no where to cut the Budget significantly, and interest on the Debt keeps climbing

Are you saying your solution will not work?

 

[Pete7469]

You could default on all the debt that the Fed holds, and nothing of consequence would happen....It's not as though they had any real assets on hand in the first place.

Exactly.

Money is little more than electrons in the banking computer system. All the gold in the solar system couldn't cover the appetite for spending our political whores have.

 

[kyzr]

Are you saying your solution will not work?

No, it would. I thought that Welfare had a 2-year limit, but now I think it doesn't.
Depends on which State. How can that be for a Federal benefit??
I'd make it a 2-year limit nationwide.

Which States Have Welfare Time Limits?

There are many states that have adopted wide-ranging policies concerning how long an individual can obtain welfare benefits. Time limits range from 24 months to 60 months. Only a few states have no time limits. All states allow exceptions to time limits within their policies.

careertrend.com