Magox Posted November 23, 2009 Share Posted November 23, 2009 I read a great article today from the New York Times regarding how much Debt we are accumulating as a nation and the interest payments that we will have to pay on it moving forward. If you think it is bad now, wait until interest rates go up, there is no doubt in my mind that Taxes will be heading higher period. http://www.nytimes.com/2009/11/23/business...amp;_r=1&hp The United States government is financing its more than trillion-dollar-a-year borrowing with i.o.u.’s on terms that seem too good to be true. Treasury officials now face a trifecta of headaches: a mountain of new debt, a balloon of short-term borrowings that come due in the months ahead, and interest rates that are sure to climb back to normal as soon as the Federal Reserve decides that the emergency has passed. With the national debt now topping $12 trillion, the White House estimates that the government’s tab for servicing the debt will exceed $700 billion a year in 2019, up from $202 billion this year, even if annual budget deficits shrink drastically. Other forecasters say the figure could be much higher. In concrete terms, an additional $500 billion a year in interest expense would total more than the combined federal budgets this year for education, energy, homeland security and the wars in Iraq and Afghanistan. Even a small increase in interest rates has a big impact. An increase of one percentage point in the Treasury’s average cost of borrowing would cost American taxpayers an extra $80 billion this year — about equal to the combined budgets of the Department of Energy and the Department of Education. But that could seem like a relatively modest pinch. Alan Levenson, chief economist at T. Rowe Price, estimated that the Treasury’s tab for debt service this year would have been $221 billion higher if it had faced the same interest rates as it did last year. That $700 Billion a year interest payment in 2019 will be more like $1-$1.2 Trillion a year. The $700 billion a year figure is basing it off of a benign forcast for future inflation which surely won't be the case. Link to comment Share on other sites More sharing options...
IDBillzFan Posted November 23, 2009 Share Posted November 23, 2009 That $700 Billion a year interest payment in 2019 will be more like $1-$1.2 Trillion a year. The $700 billion a year figure is basing it off of a benign forcast for future inflation which surely won't be the case. Chains you can believe in. Link to comment Share on other sites More sharing options...
3rdnlng Posted November 23, 2009 Share Posted November 23, 2009 Chains you can believe in. Link to comment Share on other sites More sharing options...
Magox Posted November 23, 2009 Author Share Posted November 23, 2009 Chains you can believe in. It's ridiculous. This is why I chose to go in the direction that I did for a living. I knew that we were in a lot of trouble, fiscally speaking, a couple years ago. The Bush administration was one of the worst in modern day history in regards to budgeting the national debt. Now that the Obama administration is in charge, he makes Bush relatively akin to appear as Ebenezer Scrooge. I don't subscribe to hardly any of the alarmist arguments, but I am telling everyone: THE DOLLAR WILL NO LONGER BE THE WORLD'S RESERVE CURRENCY SOMETIME IN THE NEXT 10 YEARS. I opened up my own precious metals advisory brokerage a couple years ago, and it was the best financial decision I have ever made. If you think that keeping your dollars in the bank is the safest thing to do, I would urge people to at least diversify some of those funds into something tangible like Real Estate, precious metals or at least convert some of it into foreign currencies, preferably where there is growth. Link to comment Share on other sites More sharing options...
/dev/null Posted November 23, 2009 Share Posted November 23, 2009 http://www.usdebtclock.org/ Link to comment Share on other sites More sharing options...
Magox Posted November 23, 2009 Author Share Posted November 23, 2009 http://www.usdebtclock.org/ Link to comment Share on other sites More sharing options...
Chef Jim Posted November 23, 2009 Share Posted November 23, 2009 http://www.usdebtclock.org/ Well thanks for that. Up until clicking on that link seeing Eric Wood's injury was the most horrific thing I had seen today. Link to comment Share on other sites More sharing options...
Magox Posted November 23, 2009 Author Share Posted November 23, 2009 I thought this would be an appropriate place to provide this link. http://thehill.com/homenews/administration...siness-programs “At a time when we are all focused on job creation, small businesses are the engine of economic growth in communities across the country and we are confident that members don’t want to go home to their districts for the holiday and inform them that there is no more funding for this vital program,” an administration official said on Friday. We've heard the W.H say the same thing on a few different occasions, for being the "engine of economic growth" $100 Million doesn't amount to much, comparatively speaking. Just to put things into context, $100 Million makes up less than .0001 % of what we are projected to spend on Health reform from 2014-2019. Link to comment Share on other sites More sharing options...
Alaska Darin Posted November 24, 2009 Share Posted November 24, 2009 Keep voting Republican and Democrat and keep getting what you've gotten. Link to comment Share on other sites More sharing options...
Magox Posted November 24, 2009 Author Share Posted November 24, 2009 Keep voting Republican and Democrat and keep getting what you've gotten. so what you're saying is that we should vote for Lou Dobbs? Link to comment Share on other sites More sharing options...
Magox Posted November 24, 2009 Author Share Posted November 24, 2009 Get ready for some good ol fashion spendin http://thehill.com/blogs/blog-briefing-roo...means-more-jobs Americans could be ready to "absorb" increases to the deficit if it means higher employment, Speaker Nancy Pelosi (D-Calif.) said Tuesday. As the Congress prepares to put together a new spending package focused on creating new jobs in the U.S., the Speaker said that while it's a "false choice" to pose the situation facing lawmakers as a balance between jobs and increased deficits, Americans would rather have jobs. "So if somebody has the idea that the percentage of GDP of what our national debt is will go up a bit, but they will now — and their neighbors and their children will — have jobs, I think they could absorb that," Pelosi said in a conference call with liberal bloggers on Tuesday, audio of which was posted by ThinkProgress. Link to comment Share on other sites More sharing options...
3rdnlng Posted November 24, 2009 Share Posted November 24, 2009 Get ready for some good ol fashion spendin http://thehill.com/blogs/blog-briefing-roo...means-more-jobs Americans could be ready to "absorb" increases to the deficit if it means higher employment, Speaker Nancy Pelosi (D-Calif.) said Tuesday. As the Congress prepares to put together a new spending package focused on creating new jobs in the U.S., the Speaker said that while it's a "false choice" to pose the situation facing lawmakers as a balance between jobs and increased deficits, Americans would rather have jobs. "So if somebody has the idea that the percentage of GDP of what our national debt is will go up a bit, but they will now — and their neighbors and their children will — have jobs, I think they could absorb that," Pelosi said in a conference call with liberal bloggers on Tuesday, audio of which was posted by ThinkProgress. Remember Pelosi stated over and over when siding with T. Boone Pickens that "natural gas was not a fossil fuel". This is the person two people away from the presidency and trying to railroad a bunch of bills through Congress. Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted November 29, 2009 Share Posted November 29, 2009 Just saying... The Muslim world is at odds with the Western financial world right? What better way to stangle us than with our own usury system. The terrorists must be laughing all the way to the Jihad front line. Link to comment Share on other sites More sharing options...
Magox Posted November 29, 2009 Author Share Posted November 29, 2009 Just saying... The Muslim world is at odds with the Western financial world right? What better way to stangle us than with our own usury system. The terrorists must be laughing all the way to the Jihad front line. Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted November 29, 2009 Share Posted November 29, 2009 This one I will indulge you. What so strange about what I said? What better way to fight a war in today's world when there is really only one military that can kick everyone's ass (the US)... It is called bleeding them dry financially. It is sad that the US actually bit on it 8 years ago. Link to comment Share on other sites More sharing options...
Magox Posted November 29, 2009 Author Share Posted November 29, 2009 This one I will indulge you. What so strange about what I said? What better way to fight a war in today's world when there is really only one military that can kick everyone's ass (the US)... It is called bleeding them dry financially. It is sad that the US actually bit on it 8 years ago. What the hell does this have to do with addressing the deficit? Link to comment Share on other sites More sharing options...
ExiledInIllinois Posted November 29, 2009 Share Posted November 29, 2009 What the hell does this have to do with addressing the deficit? Nothing. Has everything to do with causing the deficit... Maybe we shouldn't have thrown the baby out with the bathwater with regard to the war. "Shop till you drop folks... We gotta war to fight, we will handle everything" ~2003 Battle Cry. Link to comment Share on other sites More sharing options...
Magox Posted November 29, 2009 Author Share Posted November 29, 2009 Has everything to do with causing the deficit... Everything? considering that the Afghanistan and Iraq wars account for less than 8% of our current deficit, I would hardly call that "everything" but I understand that you were trying to make a point, carry on. Link to comment Share on other sites More sharing options...
John Adams Posted November 30, 2009 Share Posted November 30, 2009 Everything? considering that the Afghanistan and Iraq wars account for less than 8% of our current deficit, I would hardly call that "everything" but I understand that you were trying to make a point, carry on. No, you're not allowed to get away with that BS Magox. Saying that it only accounts for 8% and brushing it aside is accounting like Obama saying that the healthcare plan is deficit neutral. 8% is a lot of !@#$ing scratch and I want it back in my !@#$ing pocket, or at least not pouring into the Iraqi sand and Afghan mountains where it will not take root. Link to comment Share on other sites More sharing options...
DC Tom Posted November 30, 2009 Share Posted November 30, 2009 Everything? considering that the Afghanistan and Iraq wars account for less than 8% of our current deficit, I would hardly call that "everything" but I understand that you were trying to make a point, carry on. It's only 8% if you count only the supplemental expenditures and exclude the budget items wrapped into the the funding of different government departments (Defense, State, Justice - probably DoE and DHS, as well). The funding for "resetting" the military - refurbishing and replacing worn equipment, at a minimum - is a good chunk of current DoD funding, a good chunk of future funding, and in any sane accounting system would be "charged" against the wars. Not that it's all that possible to point to a given dollar of federal spending and say "THAT'S deficit spending right there!" anyway. But saying the wars are "less than 8%" of the deficit is specious, at best. Link to comment Share on other sites More sharing options...
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