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Thread: The U.S. Debt

  1. #1 The U.S. Debt 
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    This is grim, and will effect the rest of us in the world too. Canada will be hard hit.

    This came from a discussion on "Bill Moyers Journal"...



    The Budget Debate: Parking-lot Version:

    1. For thirty-one out of the last thirty-five years, the country has spent more on government programs and services than it has collected in taxes.

    2. Every year the government comes up short, it borrows money to cover the difference.

    We've now built up a very big debt —roughly $9 trillion, and yes, that is trillion with a t.

    3. The country will have humongous additional expenses over the next couple of decades as the baby boomers begin to retire and need more medical care.

    4. There is no realistic way government can lower taxes (or even keep them at current levels),.....spend money on everything people want the government to do (at least according to the polls),.....and still end up with a balanced budget.

    5. If we keep on going the way we're going, the debt will get bigger and begin to endanger the U.S. Economy and our own personal finances and plans.

    And the government won't have enough money to pay for Social Security and Medicare for the boomers and still do what most of us expect government to do.

    6. A substantial portion of the country's debt is held in foreign countries.

    Right now, these foreign investors consider U.S. Government bonds one of the safest places in the world to put their money, but......they could decide at some point that Europe or China or some other place is a better bet.

    This would be the global equivalent of a store clerk seizing your credit card and cutting it up.





    Thoughts from an American:

    In a republic, there is no higher position than that of "citizen".

    Given the reality of spineless politicians, do you feel WE have a duty, as CITIZENS, to deal with this tumor sapping the life's blood of our republic?

    If so, what do you think we can do?

    Thoughts to consider....



    "The American Republic will endure, until politicians realize they can bribe the people with their own money."

    ~Alexis de Tocqueville



    "Shame on the man of cultivated taste who permits refinement to develop into fastidiousness that unfits him for doing the rough work of a workaday world.

    Among the free peoples who govern themselves there is but a small field of usefulness open for the men of cloistered life who shrink from contact with their fellows.

    Still less room is there for those who deride of slight what is done by those who actually bear the brunt of the day;

    ..nor yet for those others who always profess that they would like to take action, if only the conditions of life were not exactly what they actually are.

    The man who does nothing cuts the same sordid figure in the pages of history,

    ...whether he be a cynic, or fop, or voluptuary.

    There is little use for the being whose tepid soul knows nothing of great and generous emotion,..

    ...of the high pride, the stern belief, the lofty enthusiasm, of the men who quell the storm and ride the thunder."

    ~Teddy Roosevelt



    Where have those who "ride the thunder" gone?


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  3. #2  
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    Whats even crazier is that the American economy has been very strong over the last 30 years and yet it still managed to rack up a huge debt. How bad will that debt look if the economy goes south?


    Life is 10% what happens to you and 90% how you react to it.
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  4. #3  
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    Maybe killing off all the baby boomers will help! LOL
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  5. #4  
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    1- And the percentage of GDP has held near 65% or less. During WWII the ND ran well over 100% and we are coming back from that. In fact 20% of that WWII debt, is part of the ND today.

    2- Actually its a little over 9T today. Did you know that over 9T has also been spent on the *War on Poverty* (Lyndon Johnson 1964), which has not nor could ever be won.

    3- There will have to be changes made in both Social Security and Medicare/Medicaid, primarily to benefits added in the programs in the 1970's. Not so much for ND, but as in any pyramid scheme, when the total collecting become more and more the total. Over 50% of the US Households now receive a check from government each month.

    4- In short, raising taxes has always decreased government income. Since the days of 70+ top tax brackets (1970's now 35%) government receipts have increased 10 fold.

    Tax collections go well beyond the federal government. State, County, City and special taxes are involved as well. IMO, those taxes have played a MAJOR roll in the recent *Housing Bubble Burst), as in many cases, School and Property Taxes have tripled over the 10 year history of the Housing Boom...

    5- Some truth here...If Congress continues to spend as they have on pet projects, by the way from both parties.

    Government has nothing to do with your future finances and plans. There are plenty of people out there totally broke, who have missed the past 25 years of expansion and growth. (About 1T GDP to 14.5T GDP).

    6- Yes, about a third of ND, is held by foreign countries or investors from those countries. Even at 1.5 to 3% (Interest rates past 7 years) the offered bonds have been bought up in minutes. The US by far the highest GDP of any single country. All of the European Community combined barely equals the US. Additionally the US Government holds title to properties far in excess of 100 Trillion.


    The vote is your power and only power all citizens have. I might add it is only effective in the State you live (Republic).

    Teddy Roosevelt as a great Republican and often mentioned as great conservatives with Goldwater and Reagan. But these folks lived and ruled in a different time, with different demographics.

    If you are interested in the future, become involved in local politics. Learn whats it takes to be one of few elected to serve. If you can get elected with your views (should be required) pursue change and work you way to higher levels...Its our system.

    Canada, is currently a thriving country and an US partner particularly in economy affairs. I don't think either will suffer anytime soon...
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  6. #5  
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    The Canadian dollar being at par with the U.S. dollar is good and bad.

    Bad for exports; good for imports. Bad for tourism. Good for travel to U.S.
    I does feel surreal.
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  7. #6  
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    Quote Originally Posted by MsSparkie
    The Canadian dollar being at par with the U.S. dollar is good and bad.

    Bad for exports; good for imports. Bad for tourism. Good for travel to U.S.
    I does feel surreal.
    If you never left Canada or spent your money outside Canada, you would never know the difference. At par with US from say 2005 (.65 C$ to 1 US$) , your paying an additional 35 cents per dollar from then and now paying near the same you would at home. On the other hand you can go to Mexico, Venezuela or Japan and buy much more with 1 C$, than could have in 2005...

    Your products do cost more, if other currencies are stable, which has not been the case. The Euro/Pound for instance are up as well to the US$.

    In the case of Canada, overall its a good thing and has not been driven by US or other currency. Commodities are th cause, which your country is rich in...OIL (Oil sands or drilled), and the many mining industries. Gold, Silver, Copper etc...

    Canada, also has some new Tax Laws going into effect, think next year and has been adding money to the total available, to hold down its value.
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  8. #7 why surreal? 
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    Quote Originally Posted by MsSparkie
    The Canadian dollar being at par with the U.S. dollar is good and bad.

    Bad for exports; good for imports. Bad for tourism. Good for travel to U.S.
    I does feel surreal.
    Why surreal?? If it is strong currency then the citizens can buy more abroad.
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  9. #8  
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    True, but few people travel abroad to buy groceries...
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