What is driving US debt?
- Thread starter Tonington
- Start date
If my mortgage balance was a little lower I'd love to be a "fly on the wall" watching that scenario. In the 80s average house prices were $50- $60 thousand, now they are 6-8 times that amount! The "fallout" would be worse than that from the skyscrapers in 1929!
I think his remark was tongue in cheek OR ELSE he may have been referring to debt among the public, not Gov't debt. :lol:
And can you imagine what the American debt, or the Canadian for that matter, would end up at with a decade of 25% interest rates, compounded monthly? I expect we will be paying anyway of course, taxes will be the kickers from now on. Then there is the unstated debt that hasn't been determined financially, but that we are accumulating by poor resource decisions. Eating farmland in municipal development, burning fossil fuels without paying a reasonable value, running the fish into the ground so to speak, flooding prime productive land with Hydro-electric dams, etc.
John Kennedy and Ronald Reagan pushed for substantial tax cuts, and got them approved by Congress. In both cases, Federal revenue went up substantially as a result.
The problem is, Congress can't ever leave a surplus, they have to spend everything that comes in, and then some. So, under both Presidents, spending went up by far more than the increased revenue.
The exact same thing happened with George W. Bush.
Politicians simply will not stop spending. That's why a Constitutional Amendment that prohibits running a Federal Deficit, unless the country is in a State of War declared by Congress, is essential. Make it require a 3/4 vote of both houses of Congress to allow a deficit budget, unless there is a declared war (not a resolution, but an actual Declaration of War).
The problem is, Congress can't ever leave a surplus, they have to spend everything that comes in, and then some. So, under both Presidents, spending went up by far more than the increased revenue.
The exact same thing happened with George W. Bush.
Politicians simply will not stop spending. That's why a Constitutional Amendment that prohibits running a Federal Deficit, unless the country is in a State of War declared by Congress, is essential. Make it require a 3/4 vote of both houses of Congress to allow a deficit budget, unless there is a declared war (not a resolution, but an actual Declaration of War).
First Audit Results In The Federal Reserve’s Nearly 100 Year History Were Posted Today, They Are Startling!
$16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest. Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious – the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs.
"We can pay taxes forever but we will never be allowed to pay debt off, we would be free of the banks and they just can,t have that and the planet at the same time."db
$16,000,000,000,000.00 had been secretly given out to US banks and corporations and foreign banks everywhere from France to Scotland. From the period between December 2007 and June 2010, the Federal Reserve had secretly bailed out many of the world’s banks, corporations, and governments. The Federal Reserve likes to refer to these secret bailouts as an all-inclusive loan program, but virtually none of the money has been returned and it was loaned out at 0% interest. Why the Federal Reserve had never been public about this or even informed the United States Congress about the $16 trillion dollar bailout is obvious – the American public would have been outraged to find out that the Federal Reserve bailed out foreign banks while Americans were struggling to find jobs.
"We can pay taxes forever but we will never be allowed to pay debt off, we would be free of the banks and they just can,t have that and the planet at the same time."db
Walter, Oh my dearest Walter.
Iraq and Afghanistan- along with the extended costs for veterans- who as of yet are not getting the services needed - is estimated at 2 Trillion.
And then we have the new data out on Soldiers suffering Brain Trauma from 1 and I say 1 IED- The damage caused so far to the brains of these soldiers from 1 IED is well beyond what we have seen from brain damage to hockey-football players after a career concussions in sports- The cumulative damage then increases on a multiple on the second and so on.
Rapid deterioration of all brain functions for many Vets is ongoing as we speak. Problem is the Politicians- Vets Dept in the US and Canada have not made this public. Yet the information is there. It was published approx 6 months ago. MSM then left the information sit.
So many Soldiers will end up in long term care facilities needing constant attention.
Those that know what is coming I would assume the suicide rate will increase dramatically.
When politicians stop spending public wealth they are replaced by the bankers.
One of the main problems with that is that the politicians who love to spend would be the ones deciding whether to pass such an ammendment or not.
Yep, just like when you are drawing water out of a well without giving it time to recover! :smile:
Since debt payments are made to banks it,s more than reasonable to assume that banks would be driving debt. Follow the money.
The whole basis of public debt comes from a fiat currency based in debt. When the govt wants to print $1million they have to sell that much in bonds. The bonds bear interest so at maturity it costs the govt $1million +interest to pay back but they only created $1million so they have to create more money to cover the interest. They get the money to cover the interest by issuing bonds that bear interest. Has anyone noticed the problem here yet? It is a never-ending spiral into greater debt created by the bankers centuries ago. I think it was Andrew Jackson that first abolished this system and it resulted in more than a few assassination attempts on him.
While this has been reinstated in common times as the 'federal reserve' the scarier entity these days is the IMF which is the Fed on a global level.
It all comes down to the fact that debt makes the rich bankers richer and allows them to control govts (therefore entire populations)through financial means.
While this has been reinstated in common times as the 'federal reserve' the scarier entity these days is the IMF which is the Fed on a global level.
It all comes down to the fact that debt makes the rich bankers richer and allows them to control govts (therefore entire populations)through financial means.
Good post. I would add that America is no longer the country it once was and the American people are no longer the people think they are.
Obama increased the American national debt by $5.5 trillion dollars. I think you are prevaricating.
Someone has to pay for two wars.............
When increasing the debt it is either good or bad depending on why you are increasing the debt.
For example if the debt levels go up for infrastructure its not so bad for two reasons. You are
increasing the value of your investment and providing jobs for workers and business opportunities
for companies bidding on contracts.
If the debt ratio is going up for war that is not a plus anymore.
Reagan, and Bush are among the worst and Obama did as well but for entirely different reasons.
George W gave everyone with a drivers licence six hundred dollars to go shopping if you remember
Obama did invest in ensuring the country didn't go broke. where I have a problem with his plan is
he didn't anticipate the greed of corporation heads who paid out bonuses with borrowed money.
His medicare plan is money well spent a healthy nation is a nation that is better off in the long run.
For example if the debt levels go up for infrastructure its not so bad for two reasons. You are
increasing the value of your investment and providing jobs for workers and business opportunities
for companies bidding on contracts.
If the debt ratio is going up for war that is not a plus anymore.
Reagan, and Bush are among the worst and Obama did as well but for entirely different reasons.
George W gave everyone with a drivers licence six hundred dollars to go shopping if you remember
Obama did invest in ensuring the country didn't go broke. where I have a problem with his plan is
he didn't anticipate the greed of corporation heads who paid out bonuses with borrowed money.
His medicare plan is money well spent a healthy nation is a nation that is better off in the long run.
"he didn't anticipate the greed of corporation heads" Yeah they really fooled him didn,t they. So your saying Obama is the only president or head of state in the modern era not familiar with corporate greed eh.
They must have kept him in a broom closet till just before the election. America has already for a hundred years been as healthy as it can get, It,s all downhill from here, their broke real bad and civil war will be their lot for a while. At least that,s what the bankers hope.
Are you suggesting our suburban developments are not space-efficient?
beaker thinks that humans should move back into caves and eat raw twiggs and berries in the dark.. Anything else might pollute the environment.
Increasing debt or deficit to continue unaffordable program spending is also bad debt.
But America has surprised the world on countless occasions- they can set things right- I was reading an article on a Romney President and the Senate and House Democrat-
Your thoughts on that.