I'm pretty sure about half of the debt is owed to Americans and domestic institutions, so they won't bother to pay that back.
The other half is split up between various countries, China and Japan having about 10% or so each.
I honestly don't see any politicians making any changes. They'll just keep kicking the can down the road until a collapse(or start a few wars and demand debt forgiveness as a terms of surrender if we win) since they personally won't be effected by it.
"It is the mark of an educated mind to be able to entertain a thought without accepting it." Aristotle
Posted 06 March 2013 - 02:40 PM
Suggestions? Wipe out all foreign debt, seal the borders and restart manufacturing here in the now isolated USA.
But seriously...there is nothing that can be done. The debt cannot ever be paid off. As another poster said, a huge amount of it is owed to ourselves but rather than pay that back, we give money to people that hate us...that makes perfect sense...
Different administrations, for instance, have borrowed huge sums of money from the Social Security fund and now they are crying that it is going to go bankrupt in a few years...well maybe if they stopped stealing from it and paid back what they took....just a thought.
For round number talking purposes...(these are not accurate so don't freak out)...we spend about 3.5 trillion dollars a year. We take in 2.5 trillion dollars a year...so each year, we are adding roughly a trillion to the overall national debt. Even if we stopped the deficit spending completely and then only spent 1.23 to 1.3 trillion a year...it would take more than 20 years to pay it off with the 1.25 of remaining money...and that is at todays interest rates. When the economy starts improving and interest rates go back up...the Lion's share of our revenue is going to be going toward the interest on the debt. This means...we are going to have to borrow more...and have to pay more interest.
When people that are fiscally conservative say this madness is unsustainable...it's true. It's not going to be pleasant when suddenly the debt interest equals every dime of incoming revenue...we wil borrow more and the debt increases and the interest increases...and soon...boom...total collapse.
It is inevitable and I don't care what kind of fantasy math you are using...it cannot be sustained like this.
Edited by Jeremiah65, 06 March 2013 - 02:41 PM.
"Liberty means responsibility. That is why most men dread it." George Bernard Shaw
"I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it." Thomas Jefferson
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"We are not human beings having a spiritual experience. We are spiritual beings having a human experience." - Pierre Teilhard de Chardin (1881-1955)
Debts of the US can be handled several ways, since it remains the world's main reserve currency. It will probably generate some inflation and a spurt of economic growth via continued money creation and quiet devaluation. This is how the WW2 debt, which was proportionally much worse, was handled.
"I have often regretted my speech, never my silence." - Xenocrates
Posted 07 March 2013 - 04:36 AM
Never,for every 3 dollars spent the treasury is only taking in 2.Thats spending one Trillion dollars more a year than the US is taking in.These figures are quoted by Rep. Paul Ryan and if they are true then it is quite staggering.
"the natural progress of things is liberty to yield and goverment to gain ground." Thomas Jefferson
Posted 08 March 2013 - 01:26 AM
imho what I think would help some real goverment accoutability as to how the money is spent this whole pork stuff your friends pockets spending has got to stop and how many meaningless jobs are there in goverment? the private sector evidently thinks a ton with the way the stock market took off after the goverment threatened to cut some.
"Were we directed from Washington when to sow, and when to reap, we should soon want bread" --Thomas Jefferson(1821)
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