Mathematically Impossible To Pay off National Debt

[rockerrockstar]

This is an older article but a good one on the mathematics of the national debt and talks about the Federal Reserve.

http://theeconomiccollapseblog.com/a...-national-debt

[Athan]

Thanks.

[Zippyjuan]

It may be mathmatical to pay of the national debt in one year but that does not mean it is impossible to pay it off over time if Congress actually got serious about it- they will have to take in more money in taxes than they spend for many years running (not holding my breath on that one). When I bought my home it would have been mathematiclaly impossible to pay it off at that time but by the end of this year, I will have accomplished that feat.

[cubical]

We could cut government spending to $1 trillion next year and we would certainly pay off the debt in relatively short time.

[eduardo89]

Nothing's impossible when you have a money printing press!

[thoughtomator]

The author has a good point in pointing out the obscene scale of the debt, but to say it is mathematically impossible is an error. It is just mathematically impossible to pay off the whole thing in a single payment, but that's not the only pay-off option.

[Seraphim]

The problem is that the way the system is designed, government spending/debt creates currency necesary to pay out to the MASSIVE amounts of govt employees.

Those people pay taxes, which in turn go towards paying the interest on outstanding liabilities (creditors) and gives the creditors peace of mind that they will get their income.

When creditors lose peace of mind, they regain peace of mind by demanding higher yield (higher interest). Falling revenues and higher interest rates stacked on top of the nominal debt as it stands destroys the ability to pay the debt down.

The author is correct. It's mathematically impossible to pay the debt down. All attempts to do so are futile.

Default/debt write down and reform the system or hyperinflation. There are your TWO options. There's no solution under the current paradigm. Mathematical truth.

America and the basically the whole world face a two pronged fork in the road. Any attempt to try some middle path will result in a head on collison with a VERY sturdy tree (reality).

Left path = a lot of pain. Right path = a lot of pain. Futile middle path = Zombie life/death.

We could cut government spending to $1 trillion next year and we would certainly pay off the debt in relatively short time.

[BlackTerrel]

It may be mathmatical to pay of the national debt in one year but that does not mean it is impossible to pay it off over time if Congress actually got serious about it- they will have to take in more money in taxes than they spend for many years running (not holding my breath on that one). When I bought my home it would have been mathematiclaly impossible to pay it off at that time but by the end of this year, I will have accomplished that feat.

This.

If it's impossible what would Ron Paul do?

[CaptainAmerica]

Is it impossible if you 0 out the interest owed back to the federal reserve? I thought Ron Pauls plan was to tell the Federal Reserve that we no longer owe them anything .

[Athan]

This.

If it's impossible what would Ron Paul do?

In short permit competing currencies and let the best (prefered) option win. That way not everyone is tied to a falling or collapsing dollar as people will actually be able to SAVE real money.

The way this works is he DOES want to pay off the debt and balance the budget if possible and at the least reasure our creditors that we are going to be paying them back because of our newfound fiscal responsibility. However that will take a VERY long time. The only way we could pay it off is if the country bothers to cut+save.