We are Broke

[Avorysuds]

40% of the money the federal government is spending is borrowed. If that's not the definition of broke then I don't know what is.

You don't know what is.

The U.S. debt/spending ratio was a good deal higher in 1945 than it is now, and the country was hardly "broke" then.

Oddly they cut taxes and cut spending to get us out of the Depression that massive spending and mass taxes couldn't "fix".

 

[Dragon]

Oddly they cut taxes and cut spending to get us out of the Depression that massive spending and mass taxes couldn't "fix".

LOL no. They raised taxes to 93% in the top bracket, and spent a shitload of money in 1942-45 -- and THAT is what brought us out of the Depression.

 

[Mad Scientist]

Not ONE mention of the Federal Reserves' role in all this.

 

[Avorysuds]

Oddly they cut taxes and cut spending to get us out of the Depression that massive spending and mass taxes couldn't "fix".

LOL no. They raised taxes to 93% in the top bracket, and spent a shitload of money in 1942-45 -- and THAT is what brought us out of the Depression.

believe what you like...

 

[OohPooPahDoo]

Cavuto: We Are Broke - Fox News Video - Fox News



Sad but true.

Cavuto is such a moron. The day after S&P "downgraded" U.S. Debt, treasuries prices went UP - that's basically the market saying "Hey guess what S&P, you're full of shit!"

Guess what, lib.......Your boy broke us, fucked up our credit rating, and doesn't have a clue as to what the fuck he is doing, PERIOD!

The "MORONS" are those who contiue to shill for that inept son of a bitch, and CHOOSE to live with their heads firmly planted up their boney lil' asses.

WTFU!

Our "credit rating" ? The 10 year t-note was trading at just over 2.5% the week before the downgrade. Now its at around 2%. Sorry but the rate you pay on debt goes UP when your credit rating goes down. No one trusts the S&P's evaluation because they are the morons that listed Lehman debt as "A" grade even as Lehman was filing for bankruptcy. Only a complete hack with moronic viewers - like Cavuto - would give any faith to the S&P "credit ratings", especially considering the market has spoken for 3 months since then and its saying it doesn't believe the S&P. If there were truly a practical downgrade in our credit, treasury rates would be flying high.

 

[Avorysuds]

Putting Government on a Diet: 1945-1950 by Dom Armentano
~

 

[healthmyths]

Don't know what happened but define "broke" i.e. is there something different from a state where there are more debts then assets?
If so then "who is broke"? THE USA??
Check out this site based on 2008 statistics which is probably now 20% less!
BUT
Total GDP of USA for next 75 years... $797 trillion
US Debt, Social security,Medicare for next 75 years: $70 trillion.

Medicare and Social Security are not "debt."

But even if it were, last time I checked $797 trillion was more than ten times $70 trillion. As I'm sure we're not in THAT great shape, especially with you cooking the books by adding things on the debt side that don't belong there, obviously you screwed up on your figures.

A) I am ALL in favor of eliminating government spending for STUPID items like these
- $2.6 million training Chinese prostitutes to drink more responsibly on the job
- The (NIH) spent nearly $442,340 to study male prostitutes inVietnam and their social setting.

I mean REALLY we sending money to the country we are borrowing from??

B) My point was simple... We have a GDP engine that is VERY hard to completely eliminate.. I.E. $797 Trillion in Gross over 75 years.. NOT my figure did you go to the link I provided???


The National Balance Sheet of the United States | Newsburglar
C) The Unfunded liabilities ARE DEBTS the govt. will have to pay or NOT!

My whole POINT is WE ARE NOT obligated to pay off these 60% owed in national debt to CHINA by the way.. we'll just bill them for their role in Korea!

But I am simply asking people NOT to engage in hyperbolic statements when the FACTS are so easy to get!

 

[Dragon]

believe what you like...

No, that's apparently what you do. I prefer to believe what's true:

Historical Top Tax Rate

Oh, my mistake, it wasn't 93% it was 94% as of 1944. Before that it was 88%.

As for the spending, you might recall that there was a war on in 1942-45, as we came out of the Depression. Wars, especially on that scale, are usually quite expensive.

 

[M14 Shooter]

I have to laugh every time The Obama says something about there being no "magic beans" to grow the economy.

We know, Your Messiahness - that's why we think Your proposals are silly.

 

[Dragon]

A) I am ALL in favor of eliminating government spending for STUPID items like these

What does that have to do with anything under discussion? I was merely pointing out that you are including things in the debt column that don't belong there.

B) My point was simple... We have a GDP engine that is VERY hard to completely eliminate.. I.E. $797 Trillion in Gross over 75 years.. NOT my figure did you go to the link I provided???

Well, your dishonesty lay on the debt side of the equation not the asset side, but you still didn't make your case. If our assets outweigh our debt by 10 to 1, where's the problem?

My whole POINT is WE ARE NOT obligated to pay off these 60% owed in national debt to CHINA by the way.. we'll just bill them for their role in Korea!

I don't think that was your point at all, but then again, I'm now wondering if you actually had a point.

Most of our debt is owned by Americans by the way, not by the Chinese government.

I am simply asking people NOT to engage in hyperbolic statements when the FACTS are so easy to get!

Good advice. I suggest you follow it.

 

[M14 Shooter]

We are not broke, There is another thread on this board having a fit that pentagon spending may take some substantial cuts. Over there we have plenty of money to spend on worthless junk and dead-end projects.

Indeed - federal reveue for FY2010 was $2.162T
It boggles the reasonable mind how some people can think this is not enough money.

 

[Wiseacre]

What's interesting to me is that in other countries who were beset by similar financial problems like we have today, it was the liberal gov'ts that cut spending. They raised taxes too, but they CUT SPENDING. Not the BS we see from our democrats, counting money we weren't going to spend anyway on the Iraq and Afghan wars, but real changes to their social entitlements. And here we sit, at loggerheads.

 

[OohPooPahDoo]

What's interesting to me is that in other countries who were beset by similar financial problems like we have today, it was the liberal gov'ts that cut spending. They raised taxes too, but they CUT SPENDING. Not the BS we see from our democrats, counting money we weren't going to spend anyway on the Iraq and Afghan wars, but real changes to their social entitlements. And here we sit, at loggerheads.

"liberal" and "conservative" don't really mean the same things over there as they do here.

 

[Wiseacre]

All I know is, these countries were social democracies that cut backon their social programs. Canada, Sweden, Germany, other places.

 

[M14 Shooter]

All I know is, these countries were social democracies that cut backon their social programs. Canada, Sweden, Germany, other places.

I'd wager that the political parties in those countries are not so dependant on entitement/social spendng to grow/maintain their voter base as U.S. Democrats.

 

[Wiseacre]

All I know is, these countries were social democracies that cut backon their social programs. Canada, Sweden, Germany, other places.

I'd wager that the political parties in those countries are not so dependant on entitement/social spendng to grow/maintain their voter base as U.S. Democrats.

I wouldn't wager too much on that. Anytime you go after somebody's entitlements, they ain't going to be real pleased about it. Seems to me if you make those cuts for future expenditures and make them across the board so everybody takes a hit AND you tie in tax reform that results in more revenue, most US voters will buy into it. Too bad we don't have the political leadership from anybody to take the bull by the horns and do it.

 

[KissMy]

The USA is a going concern.

We are in debt, but obviously not yet BROKE.

If we were broke, the flight of capital wouldn't be landing on US debt instruments.

Cavuto is an hysterical fear mongering tool.

The Fed has it rigged so it looks like foreigners are buying US debt even when they are buying it.

How do they do that, exactly? Serious question.

This is one way they do it.

I also remember seeing a change in the feds rules a couple of years ago that allowed it. I posted it somewhere. If I come across it I will repost it.

 

[The T]

Cavuto: We Are Broke - Fox News Video - Fox News



Sad but true.

Cavuto is such a moron. The day after S&P "downgraded" U.S. Debt, treasuries prices went UP - that's basically the market saying "Hey guess what S&P, you're full of shit!"

Guess what, lib.......Your boy broke us, fucked up our credit rating, and doesn't have a clue as to what the fuck he is doing, PERIOD!

The "MORONS" are those who contiue to shill for that inept son of a bitch, and CHOOSE to live with their heads firmly planted up their boney lil' asses.

WTFU!

And he and the Statists are demanding more taxes to pay for thier fuck ups.

 

[KissMy]

Social Security, Medicare, Prescription Drugs = $116 Trillion in Unfunded Liabilities.

It is not just the Federal Government that is broke in this country. States, Counties & Cities are also Broke.

Jefferson County, Alabama declares Biggest Municipal Bankruptcy in U.S. History

OK... OK.. I'll conceded $116 trillion in unfunded..
SO EVEN if we discount the future value of the USA gross domestic product by 20% over the next 75 years..
GDP projected size over next 75 years $797 Trillion but let decrease by 20%
GDP over 75 years: $637 Trillion!
Unfunded SS/Medicare/etc. over 75 years: $116 trillion

Still 5 times the amount of GDP to liabilities!

Again.. WHAT is the problem???

DEAL with FACTS not hysteria!!!

The National Balance Sheet of the United States | Newsburglar

You need to deal with reality. The unfunded liabilities are already 17% of that future GDP figure & still climbing! We collect less than that rate of GDP in taxes & still cant fund the country. Also wars & defense are not counted as unfunded liabilities but they are. We will have defense spending over the next 75 years. There is a limit to the percent of GDP that you can collect in tax without causing a serious impact to the GDP. We will also have to pay interest on the debt. If the rates are kept low to reduce the interest then inflation will spiral & the dollar will collapse.

A US credit event (default) is guaranteed when debt exceeds 130% of GDP. Signs of unsustainable debt are already beginning to show. The US had credit events with less than our current 100% debt to GDP ratio. In 1971 the debt to GDP ratio was only 40% when we defaulted by taking the US dollar off of the gold standard. In 1933 the debt to GDP ratio was only 50% when we defaulted by gold confiscation & devaluing taking the US dollar by 57%. We then surged to 120% debt to GDP & have still never managed to pay that off in 80 years.

We have been constantly defaulting at a rate of 8% per year. 1933 Gold = $20/ozt, 1934 Gold = $35/ozt, 1971 Gold = $200/ozt, Today Gold = $1800/ozt. That default rate will now increase dramatically. Greece just wrote off (defaulted) on 50% of its debt & it's debt to GDP ratio was only 140%.

 

[KissMy]

Illinois Pension System has a major shortfall. Now the state will beat more money out of it's citizens.