- Oct 16, 2008
Any solid number would be impossible. You have to take into account the level of inflation that you feel is acceptable, the speed at which money is changing hands, the open-market operations of the fed the increase on both the supply and demand sides of the economy and overall joblessness vs total entrepreneurial spirit/ability.Originally posted by: SP33Demon
So what is your tipping point until hyperinflation hits? 100 Trillion? And tell us why the Fed shouldn't give each of us $20,000 apiece (a 7Trill surplus to help our hard economic times)? Of course debt is good, but what is your number. And tell give us YOUR estimate of the inflation rate once SS and medicare are fully realized from baby boomers in 20 years (2028).Originally posted by: Evan
And the government will have taken in more tax revenue than that by the time they actually have to pay SS and medicare. It's not hard to pay for either one even if you don't raise taxes, since moderate spending reductions and increases in population more than pay for those entitlements (though I do hate that they were put in place).Originally posted by: smashp
Total Obligations By the FED is 50 trillion if you include all the liabilities such as SS and medicare.
Also, ideally, we'd be consistently in debt as long as it was manageable. A debt of zero makes no sense if you understand TVM and debt financing. Would be sanely stupid in the extreme to bring the debt down to zero.
If you change any one variable you can change the number that best supports economic growth while still controlling for inflation and even then it's a qualitative judgment.
... another way to put it is:
how much debt we should have is inversely related to how low interest rates should be.