Topic: US budget deficit and Debt

What will come from th' huge budget deficit an' foreign fundin' policy bein' run by th' current administration.


At some point th' average american is gonna have t' reduce his or hers consumption, or pay more taxes in order t' pay back th' huge deficit that has been buildin' up.


Any economic pointers t' this?

LORD HELP OREGON

Re: US budget deficit and Debt

republicans will nevre change, they believe in lowerin' taxes an' spendin' more, they believe in big business an' tricklin' down effect t' th' smaller scallywags.


It doesent work an' everytime they get into office our budget gets out o' han' an' th' defficit gets bigger.


We had a 250 billion surplus in th' late 90's an' th' republicans right away wanted t' spend it, instead o' payin' off our deficit they wanted t' spend it elsewheres, we'll keel-haul ye, we'll keel-haul ye! Then th' economey went bad an' they wanted this huge tax break, gore bein' in office an' more wise knew u couldnt do such a huge tax break that bush wanted, but morons in america voted fer bush because many o' th' hicks as they said " would rather be poor an' have their guns" or thought gettin' 800 pieces of eight back from th' government were bein' actually gonna make a big differance.
And hoist the mainsail! 

U need a balanced budget an' not keep spendin' it like it grows on trees, but th' republicans will nevre change

Re: US budget deficit and Debt

America will always have debt, we were founded with debt an' americas credit an' payouts keep alot o' thin's a float.  Right now th' rich be gettin' richer an' th' poor poorer.  th' middle class is what th' country needs, th' workin' scallywags.  And swab the deck!  without labor ye have no wealth an' th' middle class do everythin' from oil rigs t' teachin'.

Re: US budget deficit and Debt

The whole national debt thin' is extremely overhyped...


The US debt is constantly paid off.   How?   By financin' more debt.   We're continually payin' back auld loans by issuin' new loans in th' form o' government bonds, yo ho, ho  So...  every borrower gets their repayments, because, essentially, other investors be willin' t' get into th' market o' buyin' US debt.   If nobody were bein' willin' t', we wouldn't be able t' run up th' debt in th' first place.


From a microeconomic level, everyone is made happy because borrowers be paid back an' new lenders get into th' market.   So th' question then becomes definin' on a macro level when this "eventually" will happen.


Really, I think it would require an utter economic collapse equivalent t' th' Great Depression fer scallywags t' stop borrowin' government dubloons.   Bond markets tend t' do better overall when th' economy is weaker, Dance the Hempen Jig  When th' stock market an' private investment seem t' lose stability, bond markets, with guaranteed return, become more valuable, and a bottle of rum!   Therefore, th' rational investor choice fer future savin's durin' bad economic times is t' invest in bonds.    A Great Depression v, and a bottle of rum!  Shiver me timbers! 2.0 would stop that, however, fer a simple reason: if scallywags dern't have th' income t' save fer th' future...  they're not goin' t' save regardless.


Now what about in good economic times, shiver me timbers  Here's where it gets interestin'.
Prepare to be boarded! 

First, when th' economy is zoomin' ahead, we usually see another economic issue: inflation, as th' increased spendin' increases currency circulation.   This inflation causes a reduction in th' national debt, because th' pieces of eight once owed t' debtors is lowered in overall value relative t' national reserves.
Prepare to be boarded! 

In addition, good economic times, while not encouragin' investment in government bonds, ensure stability o' those bonds, because it increases th' government's ability t' repay those loans if need be, simply by raisin' taxes.   Thus, at th' least, this protects against mass runs t' cash in government bonds, because thar's long term stability.


In short, this threat just won't materialize.

Make Eyes Great Again!

The Great Eye is watching you... when there's nothing good on TV...

Re: US budget deficit and Debt

I agree whole-hartedly, me Jolly Roger so let me say "what th' lubber said above me!!!!"

Re: US budget deficit and Debt

Pirate day makes me sound like an idiot!

Make Eyes Great Again!

The Great Eye is watching you... when there's nothing good on TV...