Not one penny of US debt has been repaid for 51 years: the last time US government funded debt actually decresed on a year-over-year basis was 1960.
97% of today's funded debt has been accumulated since August 1971 - the end of the Bretton Woods era by Nixon, and the terminal delinking of all fiat currencies from any and all hard assets, ushered in the era of modern-day hyper-debt insolvency.
Obama projects 2.5% Fed Funds rate in budget calculations through 2020. Average Fed Funds rate since 1980: 5.7%; Since 2008: 0.00%, If average 5.7% rate was used, projected US deficit would increase by another $4.9 trillion by 2020. Obama projects 4.2% growth rate over next 3 years. If a normal growth rate of 2.5% is used, deficits would increase by another $4 trillion by 2020.
The US government borrows 40-50 cents for every dollar it spends. A balanced budget would mean cutting government spending in half.
Implementing a balanced budget would not reduce current debt outstanding. It would merely stop it from growing.
Over the past three fiscal years US debt grew by over $1.5 trillion per year: this is more than three times the record annual debt increase in any previous year in US history.
Last night deficit reduction targets were cut from $4 trillion to $2 trillion over the next decade, in exchange for a $2.4 trillion debt ceiling hike, which will last the Treasury until the next presidential election. Said otherwise, the Treasury needs to fund a $2.4 trillion hold over the next 15 months. Over a decade this come to $20 trillion: ten times more than the proposed deficit reduction.
Inconvenient Facts...
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redrocket190
- Posts: 1229
- Joined: September 17th, 2007, 9:07 pm
- Location: San Clemente, CA
Inconvenient Facts...
Michael Stiles
2007 Honda CR500R-AF
2007 Honda CR500R-AF
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redrocket190
- Posts: 1229
- Joined: September 17th, 2007, 9:07 pm
- Location: San Clemente, CA
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redrocket190
- Posts: 1229
- Joined: September 17th, 2007, 9:07 pm
- Location: San Clemente, CA
Exactly.redrocket190 wrote:That's like saying the Ponzi scheme was going really well, but whoops we have run out of schmucks....
It IS a ponzi scheme.
I hate to say it but even with significant cuts, we need legal immigrants especially for SS and medi programs.
But more importantly, we need to get the leaches out of government programs.
What I meant was, our significant GDP covered up the fact that we were in serious debt and politicians kept kicking it down the road.
I'm with you man.
Legal immagrants OKTharrell wrote: we need legal immigrants especially for SS and medi programs.
Illegals, no and we can't just giving amnesty to the illegals, welfare and unemployment people should have to work the jobs that the illegals work in order to bring in a check, not sit on their asses watching Jerry Springer.Rant over
