The Calculus of trying to put a positive spin on the Debt

Sorry but you greatly underestimate the will of Americans when truly faced with adversity...

 

A country with a history of severe discrimination? One where right wingers think just mentioning public good provision is communism? You underestimate how ripe it is for fascism

 

There is so much I detest about Americans behaviors today but no matter if we find ourselves faced with critical adversity I continue to believe we will rise to the occasion...

 

I'm thinking a time will come when the service on that debt consumes between 1/5th to 1/4th of the amount of tax revenue the government collects.

Interest rates will start shooting up, the Fed will start pumping out more money in an attempt to engage in market transactions to keep the interest rates down, but that will start resulting in inflation and just put more pressure on interest rates to rise, causing the budget deficit to increase, accelerating the pace of debt accumulation, which will ultimately put even more pressure on interest rates to rise, since the market for all this debt will be already too saturated. Basically this could enter into a debt spiral, which involves a feedback effect that could cause things to spiral out of control fairly quickly.

 

I guess its really going to upset you that Trump is calling for a record breaking 4.4 trillion dollar budget and it is estimated we will be running 1 trillion dollar deficits next year. What matters most is deficit as a percent of GDP because even if the debt is the same, if the GDP has grown and money has devalued the debt has actually shrunk in real value.

 

So far no one has cared about debt and it keeps climbing...once we get to that place where the debt service is a huge problem...it will be too late...

 

A laudable approach, but best be prepared nonetheless...

 

Government policy is often a knee-jerk reaction, unfortunately.
Even though anyone could have seen this crisis coming, it will take a crisis imminently about to happen before people feel there's enough impetus to change course.

 

Actually, it isn't. The problem, however, is when ideology corrupts the policymaker (e.g. the notion of self-correcting markets discouraging interventionism; use of monetarism when it actually can generate a perfect stagflation storm etc etc)

 

It's not laudable...I hope when faced with true adversity we can show more than our collective 60 IQ...

 

This is the nature of politics...of political whores pandering for votes! We are knee-jerk reactive because voters refuse any legislation that does not provide something for them. Politicians know this. How far will a politician go if they talk about $22 trillion in debt and say they will not only reduce government spending by $500+ billion but will also increase taxation by another $500+ billion...they will be shown the door! Our government spending issues are the result of political whores and self-serving voters. How this will ever change I don't know??

 

One can show that all of the time mind you. The idiotocracy hasn't him home just yet

 

We have a big fool in the WH surrounded by other fools cowering to feed the big fool's ego...if it were a movie it would be comical but it's the USA often referred to as the most powerful nation on Earth...run by fools. Of course we can't have fools in Washington without having Americans voting for fools. Whatever comes from our foolery...it will also effect other nations and many of us are just hoping this does not involve nukes...

 

Blame the Democrats. When greeting Mr President with a quick hello, he would have replied 'Its Bernie. Let's spend to help the many and not the few"

 

There's enough blame to go around to everyone...