The debt limit!

[Rigby5]

And they're gonna keep on kickin it, too.

There is interest due on every dollar in existence. The nature of the monetary policy itself dictates that there will always be more debt in the system than there is currency in existence ot pay the debt.

Even if the government stopped borrowing to do deficit spending, there is still pricipal plus interest due every month.

If they stop borrowing, then no new currency is created to replace the currency that they used to make those payments.

Whether you're making a payment on a loan or paying a tax to make a payment on a Treasury bond, the portion of the payment that goes to pay off the principal extinguishes that portion of the debt. But the debt also extinguishes the currency.

When currency and debt meet, they destroy each other.

If they just pay off the principal only, all of the loans and Treasury bonds that exist, the entire currency supply vanishes.

So, if they don't send the country deeper into debt every year, the whole thing goes into a deflationary collapse under the weight of those payments.

Totally wrong.
It is debt that destroys currency, so one should NEVER incur any debt if at all possible.
It is debt that causes deflationary collapse, not the reduction of debt.
The economy and currency works best when there is no debt at all, which is what the US was for most of its history.
Historically it is only during war that any debt was allowed at all.
What we are doing now is not only foolish, but criminal.
Borrowing so that we can give money to the corrupt government in Kyiv, is criminal.
The only reason we could possibly be doing something that stupid and illegal, is secret kickbacks.

 

[Natural Citizen]

I don't think some of you are actually reading what I wrote.

But whatever. Take from it what you will. Or won't.

Doesn't really change anything.

 

[Lesh]

No, just the reality of the situation. Only way one reaches their credit card debt limit is by using to spend too much. Once you reach your limit, the card doesn't work anymore until you pay down some of your debt. Which is counter to your lame assertion of not paying the existing balance off.

Duh....

You're not talking about cutting additional debt. You're talking about nor paying existing debt. And it ain't just "credit card debt". Not raising the debt ceiling essentially cuts off paying ALL debt

Refuse to pay off your credit cards an your credit rating goes to shit,.,.

 

[Rigby5]

You seem to have a fundamental misunderstanding here.

What you advocate is not paying off your EXISTING credit card debt

A debt ceiling does not at all mean you still do not have to pay off your existing debt, but just means you are not allowed to borrow any more.

We can and should cut the federal spending by over half.
For example, foreign troop deployments cost about 6 times more than housing the troops at home.
Nor should we be paying any country any money not owed, like the trillions we are giving to the Ukraine.
We likely should eliminate Homeland Security, TSA, BATF, DEA, etc.

 

[Lesh]

It is debt that destroys currency, so one should NEVER incur any debt if at all possible.

So no more mortgages are car purchases?

Stupid claim

 

[80zephyr]

What wars were they?

The left marched against war when Bush II was president. When Obama was elected, the demonstrations disappeared.

​

 

[Lesh]

The left marched against war when Bush II was president. When Obama was elected, the demonstrations disappeared.

​

Obama didn't invade Iraq stupid

 

[Rigby5]

You're not talking about cutting additional debt. You're talking about nor paying existing debt. And it ain't just "credit card debt". Not raising the debt ceiling essentially cuts off paying ALL debt

Refuse to pay off your credit cards an your credit rating goes to shit,.,.

Wrong.
The debt ceiling is only on discretionary spending.
Mandatory spending, like interest on the national debt, Social Security, etc., are NOT included in the national budget at all.

Most of the national budget, like defense spending, is discretionary and can easily be cut in half or more.

 

[Rigby5]

The left marched against war when Bush II was president. When Obama was elected, the demonstrations disappeared.

​

I am far left, but I agree Obama totally broke his promise to stop the illegal wars.

 

[Rigby5]

Obama didn't invade Iraq stupid

Obama said he was against the invasion of Iraq, but then appointed Hillary as Sec of State, even though she supported the war even more than Bush.
Not only did Obama support the war after election, but then expanded it by more than a factor of 10, in Afghanistan, Iraq, Libya, Egypt, Syria, Pakistan, Yemen, etc., and Hillary even wanted to nuke Iran.
Obama did as bad on war as Bush.

 

[Rigby5]

So no more mortgages are car purchases?

Stupid claim

It costs more to rent than own, so then of course one has no choice but to mortgage for a home.
But that is ONLY because the debt increases your wealth with significant payback.
What the government has been investing in has NO payback at all, and is just pork.
We are not building dams, canals, harbors, highways, or any productive infrastructure.
Instead we are buying weapons to give to Kyiv illegally.

And yes, I would NEVER finance a car.
Either buy used or save up for it.

 

[Lesh]

Wrong.
The debt ceiling is only on discretionary spending.
Mandatory spending, like interest on the national debt, Social Security, etc., are NOT included in the national budget at all.

Most of the national budget, like defense spending, is discretionary and can easily be cut in half or more.

Nonsense

Debt ceiling: Here's what could happen if lawmakers don't raise the country's borrowing limit

The federal government caps the amount of money it can borrow. But what are the risks if Congress fails to lift the debt limit?

www.cbsnews.com

 

[Lesh]

I am far left, but I agree Obama totally broke his promise to stop the illegal wars.

More nonsense/

You're a Kremlin stooge

 

[80zephyr]

Obama didn't invade Iraq stupid

He didn't leave either.

 

[Dadoalex]

Actually China was responsible. The largest part of Trump's spending was in response to the COVID pandemic.

So China was responsible for the tax cut that drove the deficit from 400B to over a trillion?
REALLLLLLLY?

 

[Delldude]

You're not talking about cutting additional debt. You're talking about nor paying existing debt. And it ain't just "credit card debt". Not raising the debt ceiling essentially cuts off paying ALL debt

Refuse to pay off your credit cards an your credit rating goes to shit,.,.

You have a fundamental misunderstanding of borrowing and debt.

Why does this not surprise me?

 

[Dadoalex]

Wrong.
Trump did not cause inflation at all.
Prices were dropping under Trump.
Biden caused the price increase by the illegal economic sanctions against Russian oil.

Your knowledge of economics is humorous.

Rent prices in Florida went up over 50%in Florida between 2020 and 2021.
No tax increases
Just greed.

This is what' wrong with capitalism.

 

[BWK]

Can we please stop pretending there's a debt limit, FFS.

As long as you play with the debt limit, there won't be any pretending.

 

[BWK]

You have a fundamental misunderstanding of borrowing and debt.

Why does this not surprise me?

You have a fundamental misunderstanding of borrowing and debt. Folks, this is why we cannot have Republicans running this country. That statement comes from such an extreme level of ignorance, we could apply what he said for the next Idicracy movie.

 

[rightwinger]

Obama said he was against the invasion of Iraq, but then appointed Hillary as Sec of State, even though she supported the war even more than Bush.