[gettingthere51]

http://gonzalolira.blogspot.com/2011/06/dream-little-dream-how-long-would-it.html

A good read for those who have not done the math and dont really understand what it means to "balance" the budget and reduce the deficit.


I see alot of want to be economists running around thinking "hey we can reduce our borrowing and pay off our debt no problem"


hey these same people get excited about cutting over 1 trillion dollars in 10 years(100 billion a year).

When to even be serious, you need to cut more then 1 trillion a year. Every year you borrow is still a year you are living outside your means, no matter if the rate is 0% or close to 0%.

 

[abatardi]

I see alot of want to be economists running around thinking "hey we can reduce our borrowing and pay off our debt no problem"

you can never pay off the debt, it is an impossibility built into the system..

 

[onealx4]

Our politicians have a champagne taste on a wine budget.

 

[Hick Industries]

you can never pay off the debt, it is an impossibility built into the system..

Paying off the entire deficit is a lot easier than paying off a home loan. All it takes is the will.

 

[survival mike]

our funded and unfunded liabilities total over $64 trillion.

if you confiscated all the wealth in the world it would add up to about $60 trillion.

there is no way to repay what we already owe... let alone the money they want to borrow in the future.

 

[Cool Hand]

A brief study in Kenesian economics will teach you exactly why.

 

[Aldo99]

Not difficult at all...keep monetizing the debt. Eventually when hyperinflation sets in, voila. All tidied up. No more debt.

 

[Sundsvall]

We don't have to pay off all the debt. All nations carry a bit of debt.

Its the ratio that counts. Right now the debt is 96% of GDP. We need that ratio to be lower so that nations and investment funds around the world would continue rolling over the debt.

The reason why the interest rate is set to near zero, is so that inflation will overtake the interest payments.

All the nation has to do increase GDP in a real way, (instead of balance sheet tricks) make more real things domestically that people and nations are will to buy, and the Debt/GDP ratio will come down.

Then we can increase the interest rate on the national debt and bring balance back to the system.

Right now we have massive money supply expansion, reduction of GDP and increase in spending.

So hyperinflation may well be in the very near future.

 

[abatardi]

Paying off the entire deficit is a lot easier than paying off a home loan. All it takes is the will.

The deficit is one thing, the US debt to the fed is another. That is a literal impossibility to pay off.. because if you used every single dollar in circulation and paid it back, you would still owe money. The system is built on perpetual debt.

 

[billt460]

Paying off the entire deficit is a lot easier than paying off a home loan. All it takes is the will.

This is true with most any debt. It takes a lot of hard work and financial dicipline. Granted the government, much like it's citizens, doesn't have much of it these days, hence more spending = more debt. Stop spending and start saving, and the debt will take care of itself. That holds true for the citizen or the government. Bill T.

 

[abatardi]

We didn't accumulate it overnight,in a thirty year time frame,it could easily be payed off,it's all about the people getting behind the idea,surpluses of the '90's proves that.

You're not understanding.

http://www.youtube.com/watch?v=Y_YxNG3nUUk&feature=youtu.be&t=2m17s

http://theeconomiccollapseblog.com/...y-impossible-to-pay-off-the-u-s-national-debt

Source: The Economic Collapse Blog, Copyright 2011

 

[Rascals]

Our politicians have a champagne taste on a wine budget.

Ohh they sure know how to whine.

 

[billt460]

"If the U.S. government went out today"........

You don't pay off debt "in a day". Bill T.

 

[abatardi]

It can be done,regardless of youtube.

People could not pay for a home in 30 years either.

Unless that is your quote,you cannot post copyrighted material on this site,forum rules

It can never be done, regardless of your constant refusal to learn from anyone.

The monetary system It IS BUILT ON perpetual debt.

If I were the only person in the world that could make, let's say, ameros. And I loaned you $1,000 Ameros -- the only amount in circulation -- with the condition that you had to pay me back $1050 Ameros... How would you do that? Through "getting people behind the idea"?

 

[abatardi]

You don't pay off debt "in a day". Bill T.

In the case of this debt, you don't pay it off ever. :thumb:

 

[abatardi]

as money supply expands,it would be easily done.

You understand that the expansion of the money supply is done by borrowing more money from the fed, right? That's how central banking works.

 

[abatardi]

Do you understand that when Bill Gates started Microsoft,he created wealth?

Wealth is not the same as money. And if that's what you are trying to refer to, people gave him their money for his goods (goods that really only 'cost' time and maybe a little electricity to produce, unlike physical goods). The money came into circulation from somewhere...

>> it was created out of debt from the fed and the fractional reserve banking system. <<

Bob, sometimes you put up good arguments. Not so here. You are just plain wrong on this one, no way around it. This is not a matter of opinion. This is how it works. You need to understand how the system works before you can argue this one. Sorry. And if you understood how the system works, you'd realize you wouldn't have an argument here at all.

 

[billt460]

If I were the only person in the world that could make, let's say, ameros. And I loaned you $1,000 Ameros -- the only amount in circulation -- with the condition that you had to pay me back $1050 Ameros... How would you do that? Through "getting people behind the idea"?

You don't "manufacture money". You create wealth. There is a big difference. It's quite obvious you do not understand that. Bill T.

 

[billt460]

Bill,I give up on this one,when i graduated from college,the U.S. was number one in education,now we are 25th and falling,and they must have dropped economics education all together.I owe Optimist an apology,i defended the younger generations intellect.

Thanks,Bob

I know what you mean. All this, "you can't pay off debt" silliness defines why this country is in the total financial mess it's in. And I don't mean the government. Bill T.

 

[abatardi]

You don't "manufacture money". You create wealth. There is a big difference. It's quite obvious you do not understand that. Bill T.

Ah but the Fed does "manufacture money"... the Treasury might print it, but what does it say on it? Federal Reserve Note. $1 is one dollar of debt to the federal reserve.

Agree that you can create wealth, but I don't define wealth in terms of paper money. They are two different things and wealth isn't what we are talking about here.