Results 1 to 16 of 16

Thread: Here’s the CBO’s latest terrible news about the national debt

  1. #1

    Here’s the CBO’s latest terrible news about the national debt

    Here’s the CBO’s latest terrible news about the national debt

    Though the annual federal budget deficit has declined since peaking above $1 trillion in the late Bush and early Obama years, the deficit for 2015 will still top $500 billion—and the national debt still sits at more than $18 trillion and counting. (That’s $154,000 per taxpayer, in case you were wondering.)
    Currently, interest on that debt is “only” about $200 billion per year, thanks in large part to low interest rates set by the Federal Reserve. But projections from the Congressional Budget Office (CBO) and the White House itself indicate that as interest rates rise in the next decade, we can expect to see annual interest payments outpacing both defense and non-defense spending by 2025:



    By then, interest payments alone will require about 3 percent of GDP.
    Read more at http://rare.us/story/heres-the-cbos-...OIICteeszs8.99



  2. Remove this section of ads by registering.
  3. #2
    The interesting point will be when interest exceeds revenue.
    The proper concern of society is the preservation of individual freedom; the proper concern of the individual is the harmony of society.

    "Who would be free, themselves must strike the blow." - Byron

    "Who overcomes by force, hath overcome but half his foe." - Milton

  4. #3
    I think we've already reached the interesting point. The per taxpayer portion of the debt has already exceeded the median net worth of the American family. By over 25%.

    There's no way we can pay it back until the FRN is completely worthless.
    Last edited by acptulsa; 02-05-2015 at 02:49 PM.
    Quote Originally Posted by Swordsmyth View Post
    We believe our lying eyes...

  5. #4
    One day closer to the inevitable ultimate US national (government) debt repudiation and default. Tick, tick, tick.

  6. #5
    Quote Originally Posted by acptulsa View Post
    I think we've already reached the interesting point. The per taxpayer portion of the debt has already exceeded the median net worth of the American family. By over 25%.
    That is interesting, but doesn't really shock the potential investor because government revenue can still cover the interest payments. But what goes on in the mind of a potential bond purchaser when he realizes that the US government must BORROW to service its debt? I don't know. But if deficits continue apace and interest rates rise to historical normal levels, we will find out pretty fast. Of course the Fed can continue to loan money at low rates, but if the market wants higher interest, that will push non-Fed bond holders to dump their bonds. That will be highly inflationary because those dollars that were on loan to the US government will be put back into circulation while the Fed will have to loan an equal amount to the US government. This would expand the money supply by something like 12 trillion dollars and there would be no way for the US government to stop it.
    The proper concern of society is the preservation of individual freedom; the proper concern of the individual is the harmony of society.

    "Who would be free, themselves must strike the blow." - Byron

    "Who overcomes by force, hath overcome but half his foe." - Milton

  7. #6
    You guys are worrying too much about this. Just let your overlords worry about it for you. Go about your mundane lives and let congress handle it. They know better than you do.
    Too bad our elected officials are not as aggressively trying to reduce the federal deficit as they are trying to strip us of our constitutional rights.

  8. #7
    Quote Originally Posted by Koz View Post
    You guys are worrying too much about this. Just let your overlords worry about it for you. Go about your mundane lives and let congress handle it. They know better than you do.
    Indeed. in fact the real problem with that chart is that it predicts us insanely letting non-defense and interest payments exceed defense spending.
    I mean just listen to Sen. Rafael Cruz:
    Quote Originally Posted by Sen.RafaelCruz View Post
    his (Cruz) assertion that the greatest threat to US national security was a nuclear Iran. “Greater than the national debt?” Quizzed one activist. “Yes,” Cruz responded, “And I am very concerned about the national debt, but the national debt is not going to drop nuclear weapons on us.”
    See! what we should truly be worried about is Iran dropping a nuclear bomb on us.

  9. #8
    Quote Originally Posted by acptulsa View Post
    I think we've already reached the interesting point. The per taxpayer portion of the debt has already exceeded the median net worth of the American family. By over 25%.

    There's no way we can pay it back until the FRN is completely worthless.
    Hey, I'm all for paying it back with completely worthless FRNs. I'd even donate my 200 trillion completely worthless Zimbabwe dollars for the completely worthless payback completely worthless cause.

    Anybody else up for a game or two of mega Monopoly?



  10. Remove this section of ads by registering.
  11. #9
    Quote Originally Posted by Ronin Truth View Post
    Hey, I'm all for paying it back with completely worthless FRNs. I'd even donate my 200 trillion completely worthless Zimbabwe dollars for the completely worthless payback completely worthless cause.

    Anybody else up for a game or two of mega Monopoly?
    This is almost certainly the ultimate end game for the dollar. Of course an outright default is possible, but not likely because that would require courage and honesty from Congress. And it might be possible to dramatically cut the size of government down to a nubbin, erase debts to the Fed, do triage on entitlement programs, and then sell off all Federal land and use the proceeds to pay off the debt and buy out those who are truly dependent on entitlement programs. But that ain't gonna happen either. So it will be the monopoly money route. The only question is how long can they keep the game going.
    The proper concern of society is the preservation of individual freedom; the proper concern of the individual is the harmony of society.

    "Who would be free, themselves must strike the blow." - Byron

    "Who overcomes by force, hath overcome but half his foe." - Milton

  12. #10
    All this tells me is that low interest rates are here to stay. Double that with the likely-ness of the Euro doing some QE...
    Libertarians - trying to improve the world through ideas and free markets rather than legislation and prisons.

  13. #11
    Quote Originally Posted by Suzanimal View Post
    Here’s the CBO’s latest terrible news about the national debt



    Read more at http://rare.us/story/heres-the-cbos-...OIICteeszs8.99
    I am still waiting to hear how "avoiding" this is even possible. People talk and talk all day, but really is there anything that can be done at this point? Serious question.
    There are only two things we should fight for. One is the defense of our homes and the other is the Bill of Rights. War for any other reason is simply a racket.
    -Major General Smedley Butler, USMC,
    Two-Time Congressional Medal of Honor Winner
    Author of, War is a Racket!

    It is not that I am mad, it is only that my head is different from yours.
    - Diogenes of Sinope

  14. #12
    Quote Originally Posted by Acala View Post
    This is almost certainly the ultimate end game for the dollar. Of course an outright default is possible, but not likely because that would require courage and honesty from Congress. And it might be possible to dramatically cut the size of government down to a nubbin, erase debts to the Fed, do triage on entitlement programs, and then sell off all Federal land and use the proceeds to pay off the debt and buy out those who are truly dependent on entitlement programs. But that ain't gonna happen either. So it will be the monopoly money route. The only question is how long can they keep the game going.

    Except for Finland, stiffing the creditors is always just SOP when it comes to the fraudulent national debts.

  15. #13
    Quote Originally Posted by Ronin Truth View Post
    Except for Finland, stiffing the creditors is always just SOP when it comes to the fraudulent national debts.
    I'm a bit jealous. I wish I could pay my student loans with worthless scrip.
    Quote Originally Posted by Torchbearer
    what works can never be discussed online. there is only one language the government understands, and until the people start speaking it by the magazine full... things will remain the same.
    Hear/buy my music here "government is the enemy of liberty"-RP Support me on Patreon here Ephesians 6:12

  16. #14
    Quote Originally Posted by heavenlyboy34 View Post
    I'm a bit jealous. I wish I could pay my student loans with worthless scrip.
    Just wait a few more months.

  17. #15
    Quote Originally Posted by Ronin Truth View Post
    Just wait a few more months.
    Heh. I don't think they'll give me a FED bailout, but that would be kinda nifty...I've never lived like a mafioso before...
    Quote Originally Posted by Torchbearer
    what works can never be discussed online. there is only one language the government understands, and until the people start speaking it by the magazine full... things will remain the same.
    Hear/buy my music here "government is the enemy of liberty"-RP Support me on Patreon here Ephesians 6:12

  18. #16
    Quote Originally Posted by Bman View Post
    All this tells me is that low interest rates are here to stay. Double that with the likely-ness of the Euro doing some QE...
    The Fed can keep the rates low for money they loan out. They can't keep rates low for money that the US govt borrows, at least not forever.

    I'm guessing that CBO estimate is assuming incredibly low rates thru 2025. Given the amount of debt and QE, interest rates should be at historical highs, not lows.

    By the way, rates have been spiking the last 2 weeks. They're coming off record lows so it's not a concern yet, but keep watching.



  19. Remove this section of ads by registering.


Similar Threads

  1. Rand moves to 8th place in latest WSJ poll
    By RonPaul4Prez2012 in forum Rand Paul Forum
    Replies: 24
    Last Post: 09-28-2015, 12:37 PM
  2. Ron Paul joins top-tier in latest FOX News [national] Poll
    By sailingaway in forum Ron Paul Forum
    Replies: 0
    Last Post: 12-09-2011, 07:42 AM
  3. Replies: 0
    Last Post: 10-09-2009, 01:56 AM
  4. I just got some really,really terrible news
    By jdmyprez_deo_vindice in forum Open Discussion
    Replies: 13
    Last Post: 06-04-2009, 09:57 AM
  5. Our National Debt Has Outgrown The 'National Debt Clock'
    By ohgodno in forum Grassroots Central
    Replies: 0
    Last Post: 10-09-2008, 07:21 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •