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Thread: What does the increasing national debt mean for us?

  1. #11
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    It is a pleasant premise isnít it? Trillion dollar deficits donít matter because we can make up the difference with increased debt, inflation and debt fueled growth. A snake eating itís own tail need never go hungry. An Argentina style crisis could never happen here.

    Iím just a troglodyte paleo conservative deficit hawk. Weíre nearly extinct, but in my primitivist view, we are essentially imposing a tax on future generations. But who am I to quarrel with the sophisticated economics of Mr. Sanders and Mr. Trump?

  2. #12
    Senior Member iris lilies's Avatar
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    I have heard this theory about why a large national debt doesnít matter. But Ė Iím deeply skeptical of it. In things financial if you donít understand them stay away from them. I run my household with no debt because in my world interest is The Enemy.

    But this is black-and-white thinking from someone of the lower orders in flyover country who could never have gotten into Princeton let alone pass that macro economics course from the guru himself, the spinner of the myth, the teller of the tale.

  3. #13
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    Quote Originally Posted by Yppej View Post
    Ot wouldn't be so bad if we weren't picking a trade war with the country that owns so much of our debt.
    If we owe China, say, a trillion dollars. Which of us has the bigger problem?

  4. #14
    Senior Member bae's Avatar
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    Quote Originally Posted by iris lilies View Post
    But this is black-and-white thinking from someone of the lower orders in flyover country who could never have gotten into Princeton let alone pass that macro economics course from the guru himself, the spinner of the myth, the teller of the tale.
    I passed the course, true.

    But I maintain no debt myself, and do most of my personal transactions with baskets of smoked salmon, or silver coin. Perhaps I understood all too well what he was saying? :-)

  5. #15
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    Quote Originally Posted by LDAHL View Post
    It is a pleasant premise isn’t it? Trillion dollar deficits don’t matter because we can make up the difference with increased debt, inflation and debt fueled growth. A snake eating it’s own tail need never go hungry. An Argentina style crisis could never happen here.

    I’m just a troglodyte paleo conservative deficit hawk. We’re nearly extinct, but in my primitivist view, we are essentially imposing a tax on future generations. But who am I to quarrel with the sophisticated economics of Mr. Sanders and Mr. Trump?
    I didn't say I agreed then nor now. I can't imagine that the debt is harmless. What I would like to see is stopping the annual deficits.

    How many states have a law on the books that the budget must balance every year? Idaho does it every year. Always a buffer available.

    It depends on the website you hit: some say 38 states, others say 49.

    Like many of you, we have no debt. Got out...staying out!

  6. #16
    Simpleton Alan's Avatar
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    Quote Originally Posted by Gardnr View Post
    How many states have a law on the books that the budget must balance every year? Idaho does it every year. Always a buffer available.

    It depends on the website you hit: some say 38 states, others say 49.
    I believe 49 states require a balanced budget either by statutory requirement or constitutional citation, with Vermont being the outlier.

    While a little leeway in times of war might be nice, I'd like to see it as a Federal requirement as well.
    "Things should be made as simple as possible, but not one bit simpler." ~ Albert Einstein

  7. #17
    Senior Member JaneV2.0's Avatar
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    Quote Originally Posted by Alan View Post
    I believe 49 states require a balanced budget either by statutory requirement or constitutional citation, with Vermont being the outlier.

    While a little leeway in times of war might be nice, I'd like to see it as a Federal requirement as well.
    I would like to see rigorous elimination of waste and duplication of services combined with a corresponding increase in tax revenue to that end.

  8. #18
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    One thing I believe the current administration is doing right is seeking to move federal offices out of the DC area. Reducing fraud, waste and abuse where you find it is the right thing to do, but I doubt thatís where the real money is. If you truly want to reduce spending you need to reduce programs. We seem to be moving in the opposite direction, however.

  9. #19
    Senior Member Rogar's Avatar
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    I have read that before long the interest on the national debt will exceed what it spends on the military. I have wondered why we don't just create electronic money in the federal treasury rather than borrow. It not like we are ever going to pay it off.

    I suspect there is an upper limit to debt, but we won't know what it is until we get there.

  10. #20
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    At some point it will hit home that money is just numbers in paper. Then only those things with intrinsic value will matter. Precious metals mar or may not make the cut. It depends how hungry and thirsty we are.

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