The U.S. Does Not Have a Debt Problem

Tax rates or tax revenues..................they are not mutually inclusive.

 

Fair enough. In that case, I would like to ask you, as a business owner, two questions. One, have you ever used debt to pay for capital expenditures? And two, are you motivated to increase your revenues over time?

 

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Listening to the drivel of the OP and his subsequent posts, is there any doubt an the minds of normal Americans that Progressives are greedy, amoral, and evil?


Good Gods, just how far are common Americans going to let the Progressives rob them blind before they wake up and say ENOUGH!


It has gotten to the point that is comical.

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Would you like to contribute anything of substance to counter the arguments made in the original article, or is this personal attack on Progressives all you got?

 

Is suggesting that businesses use debt to expand or even to get started an invalid claim? Venture Capitalism wouldn't exist if this weren't the case. And venture capitalists wouldn't be stinkin rich if it didn't work!

First part is subjective to your industry - i.e., is your business scaleable? Market conditions? And the second part is a personal choice - if you don't want to expand, that's your call. My business is still young and expanding. I have debt, but I have a positive cash flow. If I hadn't gone into debt to make my capital investments, I wouldn't have a cash flow. My business debt will be paid off in about a year, at which point I could (a) wait until I've made enough profit to reinvest in more capital equipment, or (b) I could use debt to invest in more capital immediately, likely doubling my cash flow, and again paying it off in about a year.

I don't really care if you believe I have a business or not; but if I've said anything that is invalid then please make your case.

 

That's an odd thing to say, I mean even by your standards. We weren't discussing the process in which the FED purchases Treasuries. We were discussing the fact that they are buying the majority of the bonds issued by the Treasury. Being bought on the open market doesn't negate that, so it's odd that you would even bring that up as your "bazinga." Interest rates are being kept low purposefully through the method of the FED buying the majority of the Treasury bonds. You've just been educated. Bazinga.

 

And who decided to slash taxes and then turned around and created an unfunded Prescription plan for Medicare, and two unfunded wars? After inheriting a tax and spending regime that was bringing down the deficit over the long term and leaving us in surplus on our revenues?

 

Obama...

 

So which of the 17 financial experts making statements about the coming crash are you taking issue with?

What part of G. Sachs bracing for a bond crash do you disagree with?

How are Spain and Portugal sustainable if they can't print money?

What part of the increase in higher education costs doesn't meet the definition of a bubble?

Are the world's economic superpowers engaging in a currency war?

 

Those lower tax rates brought in record revenues and produced a deficit of just $161B..................why exactly do you object to that?

The surplus which was brought about by the tax rate cuts and spending restraint Gingrich and Kasich force on Clinton was going away before Bush was elected as the economy began to slowdown in the 3rd quarter of 2000 and was in recession by the first quarter of 2001. Thanks to the policies of Bush the deficit during that recession and recovery hit a one year high of $400B and then fell for three years down to $161B. How did Obama and the Democrats do with the current recession and recovery? How about $1,400B and the $1,100+ ever since. Would you prefer to have the WORST of the Bush/Republican policies compared to the BEST of the Obama/Democrat?

Tell me if you believe we had a deficit and spending problem with the Bush/Republican policies you must REALLY think we have on now.

 

Tax rates were increased under Clinton with the Republican House agreeing to those increases. The tax cuts of the Bush admin were unpaid for since he reduced revenues more than he reduced spending. On top of that Medicare Pt. 4 was unpaid for with cuts in other areas or increased revenues and the two wars were unpaid for. That is what has given us the deficits and national debt increase,

 

Have you ever talked to someone who was ruined during the Great Depression? They never stopped talking about the risk of indebtedness.

 

When barack obama became president the national debt was about $10.5 trillion. Today the national debt is heading toward $17 trillion. Did barack obama have any role whatsoever in connection with the origination of this indebtedness?

 

The people on this forum are some of the dumbest people I have ever encountered. Their irrational fear of debt is so weird. I guess when you are uneducated and get your information from partisan sources that feed this subjective bull chit to you 24/7 you become a weird tin-foiler. The US does not have a debt problem just like it didn't have a debt problem 100 years ago, 70 years ago, 50 years ago, 20 years ago, 5 years ago, etc. We have an uneducated population problem. The debt is the least of our worries. People like Rick Perry and Sarah Palin getting elected in to positions that are allowed to make decisions is a much bigger problem to our nation.

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What bond crash are you talking about? Are the Primary Dealers all of a sudden gonna run out of the ability to purchase our bonds?

 

Probably one of the smartest statements I've heard on this site.

 

<<< MOD EDIT: PLEASE AVOID PERSONAL REMARKS >>> The Fed is not buying bonds because they are afraid no one else will buy them. They are buying them because they want people to stop buying them, lol. That's why our yields are at the lowest they've ever been and the Fed is STILL buying bonds. We've been through this convo before and you haven't gotten any smarter.

 

Debt is bad.. Live within your means and don't give some lender an excuse to charge interest. Debt creates indentured servitude, something we nominally escaped long ago.

 

No it doesn't. You are talking about underground debt you'd have with some bookie or loan shark. We are talking about normal legal debt.

 

No, we were discussing whether there is demand for U.S. debt from anyone other than the Fed. That demand is established at the treasury auction, which the Fed doesn't bid on. If there were little demand for U.S. treasuries at the auction, then the yields would be at record highs. Instead, they're at record lows (because U.S. debt is still considered a safe investment). So bazinga yourself; but I suspect you remain uneducated.

 

Yes, I have. They also denounced the stock market and bank accounts, and when direct deposit came about they swore it was a total sham. Fortunately I don't base my financial decisions on their uneducated fears.

 

16 Trillion and climbing.......countries around the world collapsing under their burdens of (D)ebt......

.......but its not a problem....no really.....a complete moron told me.
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The only sham I see is the direct-debiting of people's paychecks by the gubmint.

 

Yes I do remember that conversation! I wish you would elaborate on that because your brief synopsis doesn't quite do justice to the utter vapidity of your theory.