National Debt
Feb 8, 2014 18:35:10 #
dtremaine
Loc: Escondido,CA
When will the National Debt interest equal the income of the USA without raising taxes to compensate?
Feb 8, 2014 18:52:40 #
First I would say that it depends on how quickly it is increased by spending and second by how high the interest rate becomes because of our stupidity.
Feb 8, 2014 19:19:23 #
dtremaine
Loc: Escondido,CA
kegler299 wrote:
First I would say that it depends on how quickly it is increased by spending and second by how high the interest rate becomes because of our stupidity.
It sure does. Worst case, maybe a 3% increase in interest. Spending continuing and getting worse with Obamacare. Estimating possibly 3 years at the outside. Other countries rejecting the dollar as a world currency within 6 years collapsing the value of the dollar. What do you think?
Feb 8, 2014 22:34:22 #
dtremaine wrote:
When will the National Debt interest equal the income of the USA without raising taxes to compensate?
Only when the American people hold the house and senate responsible and fine the crap out of them every day that they don't reduce the debit....
Feb 9, 2014 09:01:40 #
lpnmajor
Loc: Arkansas
dtremaine wrote:
When will the National Debt interest equal the income of the USA without raising taxes to compensate?
Well, last deficit was 2 thirds the amount of interest payment, so in effect, we're borrowing money to pay the interest. We are paying our debts by borrowing more money.
Once there are NO deficits ( doesn't look likely to happen in the near future ), we can begin to pay interest AND principle. Even should budgets be balanced from now on, our great grandchildren will still be paying that debt.
Apr 20, 2014 00:26:30 #
dtremaine
Loc: Escondido,CA
Interest rates will have to go pretty high to compensate the last 5 years and the next 3. If that is the case, Interest and Income should meet within the next 2 years. Then we default.
Apr 20, 2014 01:25:13 #
A lot of well meaning folks believe that when Congress raids the Socialist Security account and puts Treasury Bonds in to cover it that the fund is solvent. They don't realize that the National Debt has just been increased since the cost of the bond, plus interest, has to be paid back when the bond matures.
Apr 20, 2014 16:11:39 #
dtremaine
Loc: Escondido,CA
You are sure right about that dennisimoto. Treasury would like to issue new bonds to replace old bonds. That isn't working any more. China I understand is demanding gold upon maturity. They don't want any more bonds and they are building their own gold reserves far beyond what the USA is tried to store.
Their sold reserves will then back their currency as they vie to become the worlds monetary currency replacing the American dollar which has been until recently the world monetary currency. With our debt being almost insurmountable, China will eventually succeed. Their C*******tic leadership is not a whimsy as ours has turned out to be.
Their sold reserves will then back their currency as they vie to become the worlds monetary currency replacing the American dollar which has been until recently the world monetary currency. With our debt being almost insurmountable, China will eventually succeed. Their C*******tic leadership is not a whimsy as ours has turned out to be.
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