is anyone concern about the US deficit?

[TranceNation]

it's a huge #, but when will we start feeling the impact of it? seems like we can go on forever with it

 

[Dissipate]

This year it will be a RECORD half trillion dollars.

Edit: Here is the debt to the penny: $7,014,800,837,478.20

From: http://www.publicdebt.treas.gov/opd/opdpenny.htm

No, it cannot go on forever. The reason why is that the interest on the national debt has to be paid every year, the larger the debt is the larger the interest payments. The interest on the national debt consumed about 12% of the national budget in 2000. If the debt continues its huge increase it will consume more and more of the national budget until either A. taxes will be increased big time. B. other government programs will get huge bugdet cuts.

 

[TheNinja]

I'm not real concerned. First of all I really don't even know who we owe this money too. Secondly, do these people who we owe money to have collectors and repo people to come and get it, breaking our knee caps if we don't pay up?

 

[Dissipate]

Originally posted by: Staley8
I'm not real concerned. First of all I really don't even know who we owe this money too. Secondly, do these people who we owe money to have collectors and repo people to come and get it, breaking our knee caps if we don't pay up?

No, way worse than that. The Federal Reserve is the entity that holds the most of the debt. Do you know what the Fed does? It issues all of our currency for one thing. For another thing it basically controls the entire U.S. economy. If we don't pay up the Fed could rip us a new one in a heartbeat.

Edit: the other part of the national debt is held by private individuals such as foreigners and U.S. citizens who have U.S. government bonds and securities.

 

[wyvrn]

It's money owed to ourselves. The government issues securities to raise the funds (like bonds and t-bills), and to default on any of these issues would send the value of our currency plummeting. Not good.

Yes I am concerned. You eventually have to pay the piper, and we are writing checks that my generation is going to have to pay back. We have a large aging group of seniors that are stressing our medical and social security systems, and we have still not come up with good solutions. We either have to raise taxes, slash programs, or do a little of both or we eventually will be in big trouble. That eventuality keeps getting closer.

 

[Dissipate]

Originally posted by: wyvrn
It's money owed to ourselves. The government issues securities to raise the funds (like bonds and t-bills), and to default on any of these issues would send the value of our currency plummeting. Not good.

No, it is not money we owe to ourselves. Read above, the Federal Reserve Bank holds a good portion of the debt. The Fed is a private bank owned in part by foreigners.

 

[XZeroII]

Originally posted by: Staley8
I'm not real concerned. First of all I really don't even know who we owe this money too. Secondly, do these people who we owe money to have collectors and repo people to come and get it, breaking our knee caps if we don't pay up?

You are the smartest person I know on this topic (except for me, of course). The debt is NOTHING. It means nothing. It is a 100% political tool that politicians and the media use to scare people. We could have a $5 trillion dollar deficit for the next 20 years and it would mean nothing. People who say different are just spreading misinformation.

The money is being borrowed from us, the people. It's like you owing yourself $20. What does it matter if you ever pay yourself back? NONE. The way it works is this: Rich people buy gov't bonds with the understanding that they will recieve a guarenteed rate of interest on those bonds (for those of you who don't know how bonds work). Our gov't takes that money and spends it. But where does any of this money come from? Our gov't has unlimited funds because it can simply print money whenever it wants. So whenever it needs to pay off a bond, it just wishes up some money and pays it off. Sure, it introduces extra money into our system and thus SHOULD cause inflation, but it doesn't because the money is going to people who already have billions of dollars. Inflation happens when ordinary people have more money.

This is a very dirty explanation and isn't 100% accurate, but it's how things work. The debt means nothing. It's just a number.

 

[Warthog912]

Originally posted by: wyvrn
It's money owed to ourselves. The government issues securities to raise the funds (like bonds and t-bills), and to default on any of these issues would send the value of our currency plummeting. Not good.

Yes I am concerned. You eventually have to pay the piper, and we are writing checks that my generation is going to have to pay back. We have a large aging group of seniors that are stressing our medical and social security systems, and we have still not come up with good solutions. We either have to raise taxes, slash programs, or do a little of both or we eventually will be in big trouble. That eventuality keeps getting closer.

ya, he's right- it's money we owe ourselves...

 

[Dissipate]

Originally posted by: Warthog912

Originally posted by: wyvrn
It's money owed to ourselves. The government issues securities to raise the funds (like bonds and t-bills), and to default on any of these issues would send the value of our currency plummeting. Not good.

Yes I am concerned. You eventually have to pay the piper, and we are writing checks that my generation is going to have to pay back. We have a large aging group of seniors that are stressing our medical and social security systems, and we have still not come up with good solutions. We either have to raise taxes, slash programs, or do a little of both or we eventually will be in big trouble. That eventuality keeps getting closer.

ya, he's right- it's money we owe ourselves...

No he isn't right, READ what I said. Foreigners hold these bonds. Jesus you people are dumb.

 

[XZeroII]

Originally posted by: Dissipate

Originally posted by: wyvrn
It's money owed to ourselves. The government issues securities to raise the funds (like bonds and t-bills), and to default on any of these issues would send the value of our currency plummeting. Not good.

No, it is not money we owe to ourselves. Read above, the Federal Reserve Bank holds a good portion of the debt. The Fed is a private bank owned in part by foreigners.

What are they going to do? Break our legs? When are you people going to learn that MACRO-MACRO economics is nothing like the economics that affects you personally. On a global scale, money is not a dollar or $100 million dollar bills. It's nothing. It's a cloud of smoke.

 

[TranceNation]

well if there's going to be any 'knee breaking' lets do it now while bush is still in office lol

 

[Dissipate]

Originally posted by: XZeroII

Originally posted by: Staley8
I'm not real concerned. First of all I really don't even know who we owe this money too. Secondly, do these people who we owe money to have collectors and repo people to come and get it, breaking our knee caps if we don't pay up?

You are the smartest person I know on this topic (except for me, of course). The debt is NOTHING. It means nothing. It is a 100% political tool that politicians and the media use to scare people. We could have a $5 trillion dollar deficit for the next 20 years and it would mean nothing. People who say different are just spreading misinformation.

The money is being borrowed from us, the people. It's like you owing yourself $20. What does it matter if you ever pay yourself back? NONE. The way it works is this: Rich people buy gov't bonds with the understanding that they will recieve a guarenteed rate of interest on those bonds (for those of you who don't know how bonds work). Our gov't takes that money and spends it. But where does any of this money come from? Our gov't has unlimited funds because it can simply print money whenever it wants. So whenever it needs to pay off a bond, it just wishes up some money and pays it off. Sure, it introduces extra money into our system and thus SHOULD cause inflation, but it doesn't because the money is going to people who already have billions of dollars. Inflation happens when ordinary people have more money.

This is a very dirty explanation and isn't 100% accurate, but it's how things work. The debt means nothing. It's just a number.

LMAO!! Check the national budget sometime, you will see an item called interest on the national debt, its just a SMALL TINY portion of the budget, oh yeah it happens to be the THIRD largest item on the budget. That means that your tax dollars are going to pay the interest on the national debt every year. You call this meaningless??

Inflation happens when ordinary people have money?? Where the hell did you read this? LMAO

 

[wyvrn]

Originally posted by: Dissipate

Originally posted by: Warthog912

Originally posted by: wyvrn
It's money owed to ourselves. The government issues securities to raise the funds (like bonds and t-bills), and to default on any of these issues would send the value of our currency plummeting. Not good.

Yes I am concerned. You eventually have to pay the piper, and we are writing checks that my generation is going to have to pay back. We have a large aging group of seniors that are stressing our medical and social security systems, and we have still not come up with good solutions. We either have to raise taxes, slash programs, or do a little of both or we eventually will be in big trouble. That eventuality keeps getting closer.

ya, he's right- it's money we owe ourselves...

No he isn't right, READ what I said. Foreigners hold these bonds. Jesus you people are dumb.

No we aren't. Yes foreigners hold some of our debt, but we hold the large portion. Either way, if we cannot pay off these securities then we are in trouble. The US ability to borrow is based largely on our perceived ability to repay the debt. Printing money to pay off debt is NOT a good idea long term either. Sounds like some of the people here need to take a good economics class.

 

[Dissipate]

Originally posted by: XZeroII

Originally posted by: Dissipate

Originally posted by: wyvrn
It's money owed to ourselves. The government issues securities to raise the funds (like bonds and t-bills), and to default on any of these issues would send the value of our currency plummeting. Not good.

No, it is not money we owe to ourselves. Read above, the Federal Reserve Bank holds a good portion of the debt. The Fed is a private bank owned in part by foreigners.

What are they going to do? Break our legs? When are you people going to learn that MACRO-MACRO economics is nothing like the economics that affects you personally. On a global scale, money is not a dollar or $100 million dollar bills. It's nothing. It's a cloud of smoke.

READ ABOVE please. Do you have any idea how much control the Fed has over the U.S. economy? Like I said they could do much worse than break your legs, they could completely ruin the economy if they chose to do so, then they could blame it on something else like a stock market crash.

I suggest you read up on something called the Second National Bank of the U.S. because this is exactly what this bank did when the U.S. withdrew its funds from the bank during Andrew Jackson's presidency.

 

[freegeeks]

Originally posted by: XZeroII

Originally posted by: Staley8
I'm not real concerned. First of all I really don't even know who we owe this money too. Secondly, do these people who we owe money to have collectors and repo people to come and get it, breaking our knee caps if we don't pay up?

You are the smartest person I know on this topic (except for me, of course). The debt is NOTHING. It means nothing. It is a 100% political tool that politicians and the media use to scare people. We could have a $5 trillion dollar deficit for the next 20 years and it would mean nothing. People who say different are just spreading misinformation.

The money is being borrowed from us, the people. It's like you owing yourself $20. What does it matter if you ever pay yourself back? NONE. The way it works is this: Rich people buy gov't bonds with the understanding that they will recieve a guarenteed rate of interest on those bonds (for those of you who don't know how bonds work). Our gov't takes that money and spends it. But where does any of this money come from? Our gov't has unlimited funds because it can simply print money whenever it wants. So whenever it needs to pay off a bond, it just wishes up some money and pays it off. Sure, it introduces extra money into our system and thus SHOULD cause inflation, but it doesn't because the money is going to people who already have billions of dollars. Inflation happens when ordinary people have more money.

This is a very dirty explanation and isn't 100% accurate, but it's how things work. The debt means nothing. It's just a number.

not true

printing money just for the sake of it causes inflation. It happened in Germany after WWI and it can happen again.

 

[chowderhead]

GWB and the Republican Congress are the biggest borrow and spend politicians in the history of the world. We went from record surpluses to record deficits. We had a golden opportunity to do something about entitlement programs but that was all lost by the tax cut give aways. The debt is approaching 7 trillion dollars. My generation and future generation will have to begin to pay down this debt.
Interest payments on this debt is one of the four largest pieces of the total federal budget. People's eyes glaze over when we talk about the debt and the consequences. But just wait until interest rates skyrocket and taxes really go through the roof to pay for all the obligations in the near future.
Remember that smug smirk on GWB's face during the state of the union? That is his realization that he won't be around in the near future to be blamed for the budgetary and fiscal mess he help cause in the last three years. that This will be GWB's sorry-a** legacy.

 

[XZeroII]

Originally posted by: Dissipate

Originally posted by: XZeroII

Originally posted by: Staley8
I'm not real concerned. First of all I really don't even know who we owe this money too. Secondly, do these people who we owe money to have collectors and repo people to come and get it, breaking our knee caps if we don't pay up?

You are the smartest person I know on this topic (except for me, of course). The debt is NOTHING. It means nothing. It is a 100% political tool that politicians and the media use to scare people. We could have a $5 trillion dollar deficit for the next 20 years and it would mean nothing. People who say different are just spreading misinformation.

The money is being borrowed from us, the people. It's like you owing yourself $20. What does it matter if you ever pay yourself back? NONE. The way it works is this: Rich people buy gov't bonds with the understanding that they will recieve a guarenteed rate of interest on those bonds (for those of you who don't know how bonds work). Our gov't takes that money and spends it. But where does any of this money come from? Our gov't has unlimited funds because it can simply print money whenever it wants. So whenever it needs to pay off a bond, it just wishes up some money and pays it off. Sure, it introduces extra money into our system and thus SHOULD cause inflation, but it doesn't because the money is going to people who already have billions of dollars. Inflation happens when ordinary people have more money.

This is a very dirty explanation and isn't 100% accurate, but it's how things work. The debt means nothing. It's just a number.

LMAO!! Check the national budget sometime, you will see an item called interest on the national debt, its just a SMALL TINY portion of the budget, oh yeah it happens to be the THIRD largest item on the budget. That means that your tax dollars are going to pay the interest on the national debt every year. You call this meaningless??

Inflation happens when ordinary people have money?? Where the hell did you read this? LMAO

I don't blame you for not understanding. You believe whatever is the easiest to grasp. You don't understand how money works at the global scale. Do you honestly think anyone cares about 1 trillion vs 2 trillion dollars? NO ONE. Our gov't can make money out of thin air, and that's what you don't understand. I don't expect you to understand.

 

[Dissipate]

Originally posted by: chowderhead
GWB and the Republican Congress are the biggest borrow and spend politicians in the history of the world. We went from record surpluses to record deficits. We had a golden opportunity to do something about entitlement programs but that was all lost by the tax cut give aways. The debt is approaching 7 trillion dollars. My generation and future generation will have to begin to pay down this debt.
Interest payments on this debt is one of the four largest pieces of the total federal budget. People's eyes glaze over when we talk about the debt and the consequences. But just wait until interest rates skyrocket and taxes really go through the roof to pay for all the obligations in the near future.
Remember that smug smirk on GWB's face during the state of the union? That is his realization that he won't be around in the near future to be blamed for the budgetary and fiscal mess he help cause in the last three years. that This will be GWB's sorry-a** legacy.

Wow, someone who actually sees the light. I can't believe it. You are inaccurate in one part though, the debt is already over 7 trillion dollars.

 

[XZeroII]

*SIGH*
Do any of you understand what inflation actually is? If Bill Gates recieves $7 trillion, according to you people's theories, inflation would go up so much that there would be a massive depression and the world would end. IT DOESN"T WORK THAT WAY.

 

[Dissipate]

Originally posted by: XZeroII

Originally posted by: Dissipate

Originally posted by: XZeroII

Originally posted by: Staley8
I'm not real concerned. First of all I really don't even know who we owe this money too. Secondly, do these people who we owe money to have collectors and repo people to come and get it, breaking our knee caps if we don't pay up?

You are the smartest person I know on this topic (except for me, of course). The debt is NOTHING. It means nothing. It is a 100% political tool that politicians and the media use to scare people. We could have a $5 trillion dollar deficit for the next 20 years and it would mean nothing. People who say different are just spreading misinformation.

The money is being borrowed from us, the people. It's like you owing yourself $20. What does it matter if you ever pay yourself back? NONE. The way it works is this: Rich people buy gov't bonds with the understanding that they will recieve a guarenteed rate of interest on those bonds (for those of you who don't know how bonds work). Our gov't takes that money and spends it. But where does any of this money come from? Our gov't has unlimited funds because it can simply print money whenever it wants. So whenever it needs to pay off a bond, it just wishes up some money and pays it off. Sure, it introduces extra money into our system and thus SHOULD cause inflation, but it doesn't because the money is going to people who already have billions of dollars. Inflation happens when ordinary people have more money.

This is a very dirty explanation and isn't 100% accurate, but it's how things work. The debt means nothing. It's just a number.

LMAO!! Check the national budget sometime, you will see an item called interest on the national debt, its just a SMALL TINY portion of the budget, oh yeah it happens to be the THIRD largest item on the budget. That means that your tax dollars are going to pay the interest on the national debt every year. You call this meaningless??

Inflation happens when ordinary people have money?? Where the hell did you read this? LMAO

I don't blame you for not understanding. You believe whatever is the easiest to grasp. You don't understand how money works at the global scale. Do you honestly think anyone cares about 1 trillion vs 2 trillion dollars? NO ONE. Our gov't can make money out of thin air, and that's what you don't understand. I don't expect you to understand.

Yes I know the government can make money out of thin air, and they do so every year. That is why we have INFLATION every year and have had 1500% inflation since 1913. Inflation is money out of YOUR paycheck. What you don't understand is making money out of thin air causes inflation no matter who you give it to. Rich people, ordinary people, dumb people, smart people, banks, stock brokers. It doesn't matter who gets the money there is inflation if you increase the money supply greater than the growth of the economy.

 

[freegeeks]

Originally posted by: XZeroII
*SIGH*
Do any of you understand what inflation actually is? If Bill Gates recieves $7 trillion, according to you people's theories, inflation would go up so much that there would be a massive depression and the world would end. IT DOESN"T WORK THAT WAY.

*sigh*dude, the one guy not understanding how it works is you.

 

[TheNinja]

Originally posted by: Dissipate

LMAO!! Check the national budget sometime, you will see an item called interest on the national debt, its just a SMALL TINY portion of the budget, oh yeah it happens to be the THIRD largest item on the budget. That means that your tax dollars are going to pay the interest on the national debt every year. You call this meaningless??

Inflation happens when ordinary people have money?? Where the hell did you read this? LMAO

I should clarify what I meant earlier. I'm not concerned b/c we hear the term "national debt" tossed around by politicians all the time but we never really feel the stress or concern about it. The average citizen (myself included) doesn't really understan who we owe this debt too, nor does he/she understand how anyone will force us to pay it back or hold us accountable. You hear the words tossed around, it keeps growing, no biggie, we've lasted this long.....that's the attitude that people have.

 

[Dissipate]

Originally posted by: XZeroII
*SIGH*
Do any of you understand what inflation actually is? If Bill Gates recieves $7 trillion, according to you people's theories, inflation would go up so much that there would be a massive depression and the world would end. IT DOESN"T WORK THAT WAY.

If Bill Gates got $7 trillion dollars that money would go into a bank or a series of banks. Do you know what banks do with that money? For every 1 dollar in the bank the bank loans out 10. This is known as FRACTIONAL RESERVE BANKING. Therefore if Bill Gates received $7 trillion there would be inflation beyond your wildest dreams. God damn, learn SOMETHING about finance before you shoot your stupid mouth off.

 

[Dissipate]

Originally posted by: Staley8

Originally posted by: Dissipate

LMAO!! Check the national budget sometime, you will see an item called interest on the national debt, its just a SMALL TINY portion of the budget, oh yeah it happens to be the THIRD largest item on the budget. That means that your tax dollars are going to pay the interest on the national debt every year. You call this meaningless??

Inflation happens when ordinary people have money?? Where the hell did you read this? LMAO

I should clarify what I meant earlier. I'm not concerned b/c we hear the term "national debt" tossed around by politicians all the time but we never really feel the stress or concern about it. The average citizen (myself included) doesn't really understan who we owe this debt too, nor does he/she understand how anyone will force us to pay it back or hold us accountable. You hear the words tossed around, it keeps growing, no biggie, we've lasted this long.....that's the attitude that people have.

Read ABOVE please. If you did you would realize that tax dollars are used to pay the interest on the national debt.

 

[z0mb13]

Originally posted by: Dissipate

Originally posted by: XZeroII
*SIGH*
Do any of you understand what inflation actually is? If Bill Gates recieves $7 trillion, according to you people's theories, inflation would go up so much that there would be a massive depression and the world would end. IT DOESN"T WORK THAT WAY.

If Bill Gates got $7 trillion dollars that money would go into a bank or a series of banks. Do you know what banks do with that money? For every 1 dollar in the bank the bank loans out 10. This is known as FRACTIONAL RESERVE BANKING. Therefore if Bill Gates received $7 trillion there would be inflation beyond your wildest dreams. God damn, learn SOMETHING about finance before you shoot your stupid mouth off.

yes I agree with you! Xzero is just rambling nonsense right now...