If the US defaults on its debts on August 2

[jeypore]

it can keep borrowing and borrowing and borrowing.

I think you have an hard time understanding Economics of Countries!!!! Every democratic Country does this (borrowing)!!!!

Here is this fanatistic revalation, that debt is never paid back, instead only the interest on that debt needs to be paid by the Gov't......

I wonder how Pakistan is doing with IMF.............

 

[REHAN NIAZI FALCON]

I think you have an hard time understanding Economics of Countries!!!! Every democratic Country does this (borrowing)!!!!

Here is this fanatistic revalation, that debt is never paid back, instead only the interest on that debt needs to be paid by the Gov't......

I wonder how Pakistan is doing with IMF.............

well said,
one runs bankrupt only if one can,t pay the interests ............

 

[jeypore]

it's because no other economy in the world is large enough for us to park our money there. No other country is capable of borrowing in such enormous quantities as America can.

Here is why I will have to call you Stupid!!!!!!!!! because foreign debt equates to only 30% and I wonder where is the other 70% coming from..........

I think you will need to google this and actually read...........

 

[Chinese-Dragon]

Here is why I will have to call you Stupid!!!!!!!!! because foreign debt equates to only 30% and I wonder where is the other 70% coming from..........

I think you will need to google this and actually read...........

You're making a personal attack, yet you have absolutely no idea what you are talking about.

Why you are talking about 30% and 70%, clearly you didn't understand what I wrote in my post.

China holds $3 trillion in currency reserves, and we receive an enormous amount of dollars, as payment for our goods. Where should we put it?

America has the biggest economy, so obviously they are the best choice. This is why China holds over $1 trillion in US debt. The second largest economy in the world is China, the third is Japan. With such enormous currency reserves, there are not many options for where we can put the dollars.

Next time, try to read the post.

 

[Awesome]

I think you have an hard time understanding Economics of Countries!!!! Every democratic Country does this (borrowing)!!!!

Here is this fanatistic revalation, that debt is never paid back, instead only the interest on that debt needs to be paid by the Gov't......

I wonder how Pakistan is doing with IMF.............

It's not me, but everyone else that is saying that at one point, they won't have enough to pay back the interest - that is they won't be lent enough money to pay back their interest. You can try paying interest only on your credit card and see what happens.

 

[Chinese-Dragon]

It's not me, but everyone else that is saying that at one point, they won't have enough to pay back the interest - that is they won't be lent enough money to pay back their interest. You can try paying interest only on your credit card and see what happens.

That was in fact the reason for the whole debt limit issue.

America did not have enough cash in hand, to cover the interest payments on their debt. Which is why they needed to raise the debt limit, so they could borrow more money to finance it.

 

[Obambam]

It started with Bush 2, but just look at what Obama has done in his first 3 years in charge. Bush never made the false promises of getting out of Iraq & Afghanistan like Obama did. Bush took 8 years to increase the national debt levels by about $4 trillion, whereas Obama has accomplished this feat in only 3 years in charge.

Yes Bilu. Bush 2 was the one who pulled the trigger but Obama thought firing one off wasn't enough so he pulled two triggers!

What happened now will not save the U.S. Rather, it will prolong and make death much slower and more painful.
The debt ceiling thing isn't the main news though. It was just the smokescreen.

Have you seen the list of powers this newly formed "Super Congress" gets over the "Congress"? It's quite shocking

 

[Abii]

I think you have an hard time understanding Economics of Countries!!!! Every democratic Country does this (borrowing)!!!!

Here is this fanatistic revalation, that debt is never paid back, instead only the interest on that debt needs to be paid by the Gov't......

I wonder how Pakistan is doing with IMF.............

why do you indians try so hard to defend other countries?!?
You're trying so hard that you don't even make sense.

They're borrowing money to pay the interest of their earlier borrowings!!!!! What happens if the borrowing rate is increased thanks to a falling credit rating? What happens if there is a worldwide recession and other countries can no longer give loans to the US?
they're gonna default if they don't change their ways NOW

 

[Mosamania]

I just read about this new bill and the USA pretty much putting the burden on the backs of the poor working Americans while not even increasing the Taxes on the rich...

The USA will go through some spending cuts which is good news bad news. good news that now maybe they can pay the debt and bad news as in now they will cut their military spending by half (I don't think they will do it though) in the end America is sick. It either gets up later healthy and with an immunity or it the sickness will grow so large and strong that it will eventually die in the world stage and hope for the next America to hold something.

 

[VCheng]

I just read about this new bill and the USA pretty much putting the burden on the backs of the poor working Americans while not even increasing the Taxes on the rich...

............

Actually, there is a good reason for that.

The funds needed to correct the imbalances are so large that there are not enough "rich" to carry the burden by themselves. The only option is to move the direct taxes down into the middle class to increase the numbers, and also increased indirect taxes no ALL, much more so on the rich by taking away exemptions. There will be enough pain to go around for sure.

The devil, as usual, is in the details.

 

[Mosamania]

Actually, there is a good reason for that.

The funds needed to correct the imbalances are so large that there are not enough "rich" to carry the burden by themselves. The only option is to move the direct taxes down into the middle class to increase the numbers, and also increased indirect taxes no ALL, much more so on the rich by taking away exemptions. There will be enough pain to go around for sure.

The devil, as usual, is in the details.

The way I see it is that they stopped the US from going on another great depression by going into a "minor depression". More people will be unemployed and people are going to pay higher taxes. there is a chance childcare and healthcare prices are going to go up too because there will be cut on the government stimulus aswell.

 

[53fd]

People need to look outside this Republican-Democrat tussle.

Raising the taxes on big corporations will only result in big corporations raising taxes on the goods they sell, making everyday commodities for Americans expensive.

What is the problem being faced right now? 'Who' is the problem being faced by the problem right now? Is it the US, or the American people?

The Democrats think that just as Roosevelt expanded the US economy by using Keynesian economics (more government spending leading to more growth in industries), the solution to the US's current problem is the same. That's not true. First of all, more government spending has lead to big corporations expanding themselves overseas, making the rich richer, outsourcing labor & manufacturing, & not helping the US economy expand, or helping American with employment (making the poor poorer).

So, is the problem the US economy, or the problems faced by the people? It is the US economy. The unusually high debts, with a likelihood of increasing interest rates as a result of a potential lower credit rating in the future. The problems Americans face today, from high unemployment rates is only a symptom to that.

As I have already shown, increased government spending or high taxes on big corporations will not solve the problem of the US economy or the American people. The US economy can only be solved by one thing: government cuts in domestic entitlement programs. Also cuts on other bodies such as the EPA, FDA etc. Americans will have to learn the hard way, without Medicare, Social Security, Medicaid, unemployment benefits, student loans, easy credit on cars/houses, food stamps etc. Government cuts in domestic programs will result in loss of jobs for Americans, & cuts in entitlement programs will make their lives harder; but it will revive the US economy, pay off its debts, & help secure its future; which will be better for Americans in the long run. The American people have to learn to live within their means.

 

[JayAtl]

People need to look outside this Republican-Democrat tussle.

Raising the taxes on big corporations will only result in big corporations raising taxes on the goods they sell, making everyday commodities for Americans expensive.

What is the problem being faced right now? 'Who' is the problem being faced by the problem right now? Is it the US, or the American people?

The Democrats think that just as Roosevelt expanded the US economy by using Keynesian economics (more government spending leading to more growth in industries), the solution to the US's current problem is the same. That's not true. First of all, more government spending has lead to big corporations expanding themselves overseas, making the rich richer, outsourcing labor & manufacturing, & not helping the US economy expand, or helping American with employment (making the poor poorer).

So, is the problem the US economy, or the problems faced by the people? It is the US economy. The unusually high debts, with a likelihood of increasing interest rates as a result of a potential lower credit rating in the future. The problems Americans face today, from high unemployment rates is only a symptom to that.

As I have already shown, increased government spending or high taxes on big corporations will not solve the problem of the US economy or the American people. The US economy can only be solved by one thing: government cuts in domestic entitlement programs. Also cuts on other bodies such as the EPA, FDA etc. Americans will have to learn the hard way, without Medicare, Social Security, Medicaid, unemployment benefits, student loans, easy credit on cars/houses, food stamps etc. Government cuts in domestic programs will result in loss of jobs for Americans, & cuts in entitlement programs will make their lives harder; but it will revive the US economy, pay off its debts, & help secure its future; which will be better for Americans in the long run. The American people have to learn to live within their means.

good republican talking points but has zero do with facts and economics. even if you copy pasted their talking points ...

Overwhelming majority of economist will tell you that the US has the lowest tax base in over 6 decades right now. This reminds me of your initial post here when you claimed that Obama did not cut taxes... it is void of facts but hey who cares about posting facts. 1/4 of the stimulus plan had tax cuts - heh

Like giving Oil companies subsidies when they are making record profits ( in the billions) won't mean they push that to the consumer... it's speculators that doing it.. the real cost of Oil is almost close to 50% less but speculators have driven it sky high. Taking away subsidies won't harm the tax payers..

Social security is not insolvent - thats another fact you missed. In fact it is " showing "at a loss now because govt borrowed FROM it- it has always been in the black on it's own. Medicare and Medicare need tweaks to make it viable for another 70 years , which is agreed upon by the Dem's too.

another fact : Outsourcing is because of trade and global deals that republicans love- is not an democrat preferred policy...

Facts and sticking to it is a honorable virtue. Remember the 90's and bill Clinton? he raised taxes and we had 21 million jobs created.. all Obama is saying remove the tax cuts to the millionaires and billionaires and go back to Clinton's tax rates which as lower than Reagan's tax rates.. don't have hedge fund managers who makes BILLIONS!only pay 15% on taxes while you and I pay between 28-39% depending on our incomes.

 

[53fd]

good republican talking points but has zero do with facts and economics. even if you copy pasted their talking points ...

No, I wrote that myself.

Overwhelming majority of economist will tell you that the US has the lowest tax base in over 6 decades right now. This reminds me of your initial post here when you claimed that Obama did not cut taxes...

Where did Obama cut the taxes is the question. Whom did he cut them for? Just last December, he extended all the Bush tax cuts. He said that the 2% of the population earning more than $250k would be given tax hikes, did that happen?

Like giving Oil companies subsidies when they are making record profits ( in the billions) won't mean they push that to the consumer... it's speculators that doing it.. the real cost of Oil is almost close to 50% less but speculators have driven it sky high. Taking away subsidies won't harm the tax payers..

You clearly have a problem understanding things. Even if the companies are making record profits overseas, they are not helping the state of the US economy, or creating jobs for the American people.

Medicare and Medicare need tweaks to make it viable for another 70 years , which is agreed upon by the Dem's too.

Entitlements & increased domestic spending on bodies like the EPA, FDA are eating up the economy of this country. The current healthcare bill is still wasteful & ineffective. Medicare & medicaid needs to be abolished, it's pretty simple. When these entitlement programs are removed, easy credit finished; the US economy will be in a much better position. The question is: are the American people ready for all these hardships, or do they want the US economy to sink deeper & deeper?

another fact : Outsourcing is because of trade and global deals that republicans love- is not an democrat preferred policy...

Again, you failed to read the starting sentence of my post, that we all need to get out of this Republican vs Democrat spectrum. Outsourcing of labor happens because big corporations can get cheap labor abroad. The sooner Americans can compete with that, the sooner jobs will stop getting outsourced, & coming back to America.

Facts and sticking to it is a honorable virtue. Remember the 90's and bill Clinton? he raised taxes and we had 21 million jobs created..

Big corporations are making huge profits overseas, & the industries inside the US are lagging behind. People don't have jobs, labor is being outsourced, manufacturing & services are being outsourced. It wasn't like that in the 90s.

all Obama is saying remove the tax cuts to the millionaires and billionaires and go back to Clinton's tax rates which as lower than Reagan's tax rates..

That is the crux of the problem. Why hasn't he done that already? Why do they still get tax cuts?

 

[53fd]

good republican talking points but has zero do with facts and economics. even if you copy pasted their talking points ...

Overwhelming majority of economist will tell you that the US has the lowest tax base in over 6 decades right now. This reminds me of your initial post here when you claimed that Obama did not cut taxes... it is void of facts but hey who cares about posting facts. 1/4 of the stimulus plan had tax cuts - heh

Like giving Oil companies subsidies when they are making record profits ( in the billions) won't mean they push that to the consumer... it's speculators that doing it.. the real cost of Oil is almost close to 50% less but speculators have driven it sky high. Taking away subsidies won't harm the tax payers..

Social security is not insolvent - thats another fact you missed. In fact it is " showing "at a loss now because govt borrowed FROM it- it has always been in the black on it's own. Medicare and Medicare need tweaks to make it viable for another 70 years , which is agreed upon by the Dem's too.

another fact : Outsourcing is because of trade and global deals that republicans love- is not an democrat preferred policy...

Facts and sticking to it is a honorable virtue. Remember the 90's and bill Clinton? he raised taxes and we had 21 million jobs created.. all Obama is saying remove the tax cuts to the millionaires and billionaires and go back to Clinton's tax rates which as lower than Reagan's tax rates.. don't have hedge fund managers who makes BILLIONS!only pay 15% on taxes while you and I pay between 28-39% depending on our incomes.

Obama has increased the debt levels by $4 trillion in his first three years in charge, as compared to Bush Jr who took 8 years to accomplish that feat.