U S National debt

[Galaxy Hunter]

A Million seconds is 12 days. A Billion seconds in 32 years. Adding three zeros, a Trillion seconds is 32,000 years. It is impossible for the human mind to grasp the size of a trillion. Our Sun is the closest star to us but the closest star to it is 24 trillion miles away. The United States is 20 trillion dollars in debt, truly an astronomical number. It gets worse. Depending on which source you believe, that is only a tenth of our debt considering unfunded liabilities. Neither major political party seems concerned. Are you? Why or why not?

 

[OldWiseGuy]

A Million seconds is 12 days. A Billion seconds in 32 years. Adding three zeros, a Trillion seconds is 32,000 years. It is impossible for the human mind to grasp the size of a trillion. Our Sun is the closest star to us but the closest star to it is 24 trillion miles away. The United States is 20 trillion dollars in debt, truly an astronomical number. It gets worse. Depending on which source you believe, that is only a tenth of our debt considering unfunded liabilities. Neither major political party seems concerned. Are you? Why or why not?

Not concerned. It's long-term debt, like a mortgage.

 

[Zoii]

What will happen if the interest on debt becomes so high the USA defaults. Is that even a possibility?

 

[Galaxy Hunter]

Not concerned. It's long-term debt, like a mortgage.

....says the old retired guy who is passing it on to future generations.

 

[Galaxy Hunter]

What will happen if the interest on debt because so high the USA defaults. Is that even a possibility?

That is where the problem will occur, servicing the debt....and yes the US can default.

 

[redleghunter]

What will happen if the interest on debt becomes so high the USA defaults. Is that even a possibility?

I don't think such a "call" would happen. The US is the largest market and if we default every other nation loses its market.

 

[Zoii]

Not concerned. It's long-term debt, like a mortgage.

Even on a mortgage you have to pay the monthly interest rate as a minimum. If you dont you may lose your house. I think maybe thats the OPs issue - if the USA allows the rate of increase to continue, and if that rate of rise is above your GDP growth, then......... well what - what actually happens - does this become a Greece Austerity Measures scenario?

 

[Zoii]

I don't think such a "call" would happen. The US is the largest market and if we default every other nation loses its market.

It would be severe for everyone - BUT - the USA still does have to pay its bills - I think thats what the OP is getting at

 

[CRAZY_CAT_WOMAN]

What will happen if the interest on debt becomes so high the USA defaults. Is that even a possibility?

I figured Trump would try to bankrupted it. To make it go away.

 

[Zoii]

I figured Trump would try to bankrupted it. To make it go away.

If a default ever occurs though, you can kiss your AAA credit rating goodbye in favor of something profoundly negative. Any cash needed from then on would be at a horribly expensive rate and not until you first paid a bit of what was owed back. This would mean a backward step forever for the USA and open the door to China to complete its hegemony without a single shot fired. Itd be up to India then as the worlds largest democracy to make its way to the top.

 

[redleghunter]

It would be severe for everyone - BUT - the USA still does have to pay its bills - I think thats what the OP is getting at

It's a global ponzie scam. China holds our debt and we buy a lot of stuff from them. Europe is dependent on our economy and monetary policy.

If China calls our debt Europe becomes like Pakistan and China starves to death.

That is why we are constantly policing the open seas and involved in every hell hole failed state. It's the order of things the Globalists all agree to. That is why they hate Trump.

 

[redleghunter]

I figured Trump would try to bankrupted it. To make it go away.

Nothing about Obama doubling our debt?

 

[Macril]

That is why they hate Trump.

Trump just added another estimated 1,5 trillion to that debt with his tax cuts so why would they hate him ?

Not sure how correct estimate it was but there was pretty colorful expression that in the coming years the whole PLA (People’s liberation army) budget can be financed only by interest from US Treasury bonds.

 

[Brian Mcnamee]

The Bible in Duet and Leviticus noted in the laws of blessing and cursing that when your prosperity has turned to debt you are the tail and not the head and it is a judgment from God. I look at Rev and can see when the seal judgments come that there is a total collapse of the world financial system. It says of seal 2,3 and 4 that peace will be taken from the earth and men should kill one another and that a days way is a quart of wheat or 3 quarts of barley. By these plagues 1/4 of the earth die of and this seems to preempt the mark of the beast which comes in with 41 months to go where a new system is put in place. Jesus spoke of these days and said they come upon the world like a snare and that would be suddenly one minute you wake up and the banks of the word are all closed.

Another aspect of this topic is the derivative bubble which is leveraged money invested in algorythems not backed by any real assets. All of the financial institutions have leveraged up to over a quadrillion dollars in these investments. As long as the trading value holds they write them down as assets but they already own over 7 times global GDP 2017, 78 trillion. so they own something that they cannot sell because there is not enough money in the world to buy them. This may very well be the trigger and not the debt.

This is a few years old so the numbers are much larger now. but in 3 minutes you can sort of understand what is up. think of Daniel saying in Chapter 8 describing antichrist
“And in the latter time of their kingdom,
When the transgressors have reached their fullness,
A king shall arise,
Having fierce features,
Who understands sinister schemes.
24 His power shall be mighty, but not by his own power;
He shall destroy fearfully,
And shall prosper and thrive;
He shall destroy the mighty, and also the holy people.
25 “Through his cunning
He shall cause deceit to prosper under his rule;[fn]
And he shall exalt himself in his heart.
He shall destroy many in their prosperity.
He shall even rise against the Prince of princes;
But he shall be broken without human means.[fn]
26 “And the vision of the evenings and mornings
Which was told is true;
Therefore seal up the vision,
For it refers to many days in the future.”
Note understanding sinister schemes and destroying many in their prosperity, A denarius for a quart of wheat on a global level might just do it.

 

[redleghunter]

Trump just added another estimated 1,5 trillion to that debt with his tax cuts so why would they hate him ?

Estimated. It depends on what happens overall when the government takes in more revenue due to the tax cuts.

I fully understand there are hypotheticals. Reagan's tax cuts did take in more revenue in year 4 of the first cut. However spending increased.

As long as we have politicians spending our hard earned money like drunken sailors on liberty, it matters not if we cut or increase taxes.

 

[Another Lazarus]

The nation's debt will flourish the pockets of the businessman who runs the government's projects, who are usually the same people.

 

[Zoii]

It's a global ponzie scam. China holds our debt and we buy a lot of stuff from them. Europe is dependent on our economy and monetary policy.

If China calls our debt Europe becomes like Pakistan and China starves to death.

That is why we are constantly policing the open seas and involved in every hell hole failed state. It's the order of things the Globalists all agree to. That is why they hate Trump.

Wow you really believe the USA can get away with not paying its debt? For a start your credit rating wont be worth a dam and any money borrowed from then on will be very expensive

 

[dgiharris]

A Million seconds is 12 days. A Billion seconds in 32 years. Adding three zeros, a Trillion seconds is 32,000 years. It is impossible for the human mind to grasp the size of a trillion. Our Sun is the closest star to us but the closest star to it is 24 trillion miles away. The United States is 20 trillion dollars in debt, truly an astronomical number. It gets worse. Depending on which source you believe, that is only a tenth of our debt considering unfunded liabilities. Neither major political party seems concerned. Are you? Why or why not?

Debt-to-GDP ratio - Wikipedia

In economics, the debt-to-GDP ratio is the ratio between a country's government debt (a cumulative amount) and its gross domestic product (GDP) (measured in years). A low debt-to-GDP ratio indicates an economy that produces and sells goods and services sufficient to pay back debts without incurring further debt.

In 2013, United States public debt-to-GDP ratio was at 104.8%.[2] The level of public debt in Japan 2013 was 243.2% of GDP, in China 22.4% and in India 66.7%, according to the IMF,[3] while the public debt-to-GDP ratio at the end of the 2nd quarter of 2016 was at 70.1% of GDP in Germany, 89.1% in the United Kingdom, 98.2% in France and 135.5% in Italy, according to Eurostat.[4]

Two thirds of US public debt is owned by US citizens, banks, corporations, and the Federal Reserve Bank;[5] approximately one third of US public debt is held by foreign countries - particularly China and Japan. Conversely, less than 5% of Japanese public debt is held by foreign countries.

I think the real issue is the debt to GDP ratio. There has to be a point where if it is too high it can spiral out of control and lead to a catastrophic failure. I'm not an economist and I'm too tired right now to research what that point would be, but I would "guess" that point is probably around 300% meaning you owe 3 times what you produce...

In any event, I think debt to GDP is the true metric to worry about and the US seems to be within the acceptable bounds.

But one item to think about is how does the wealth accumulation by the top 1% impact the above? If the top 1% control or "own" 50% of the GDP then does that actually equate to our debt to GDP ratio being closer to double what it actually is?

 

[OldWiseGuy]

....says the old retired guy who is passing it on to future generations.

Nope*. Still working and paying taxes (part of which I earmark for debt retirement). I haven't contributed much to the debt in my lifetime, although I do buy some imports. I believe that I'm a "net positive" in this regard.

*Retired from my position as an alpha male (too old for that stuff).

 

[Gigimo]

Nothing about Obama doubling our debt?

Now you know you aren't suppose to mention that, makes you wonder who all got rich because of him? (He's worth over 40M and was only worth about 1M when he went into office, hmmm).