Quote:
Originally Posted by richlevy
(Post 748864)
I know interest on debt is massive, especially considering how much we have put on the national credit card in the past 9 years. But I have to say, this little Congressional debacle has resulted in some decent education of the public as to the problem at hand, if not a viable solution.
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That is how the problem gets misrepresented. Our debt is not that large yet. But is projected to increase major due to debts incurred and yet to be paid only in the past decade. We had decreasing debt until, in only a very short time, the powers that be started spending because "Reagan proved that deficits don't matter".
Country that has serious debt problems and therefore spend something like 40% of government money to service that debt - Greece. They owe something like 140% of GDP. Then used spread sheet games to mask that debt to pay for things like the Olympics.
I am not sure yet how bad italy is. But we have a tinier problem.
Meanwhile, the August 2 agreement is to reduce spending by $1 or $2 trillion over ten years. Let's see. George Jr's medicare perscription drug law, that protected a 40% higher price for all drugs in America, will cost ... $1 trillion over ten years.
Anybody notice what further upset a once balanced see-saw? That is the point. Political spin would have us believe were are in as much trouble as Greece or Italy. Those other nations are really getting markets upset. And again, the finance rating agencies were not doing their jobs. What other surprises may be pending? Russia?
The debt is projected to increase because of things currently ongoing - ie Medicare - that will increase future debts. Who blew Medicare out of the water with new programs that cost $1 trillion more? Debts that are coming - do not yet exist. And we cannot avoid without undoing some George Jr laws.
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