Obama’s Budget Shows the US towards a EU debt Crisis?
Obama’s own budget predictions puts forth that with discretionary cuts and heavy taxation, the debt will remain stable for 10 years, only to explode later on.
Treasury Secretary Tim Geithner sounding gloomy
Paul Ryan asking about the long term and real issues facing the US Debt, particularly, the issue of our new expansive medical services and an ever increasing retiree population. This is what Obama’s budget is showing and the Obama admin does not want to curtail the issue or redesign the institutions themselves to make them soluble.
“we don’t have a definitive solution, We just don’t like yours)
The issue will spiral out of control once Bond holders ditch the US, Geithner agrees and offers nothing.
@ Iris, you aren’t seeing the forest in that mass of trees. The EU would recover if bond holders and investors were confident in the EU markets, they have been trying to get China and everyone else under the sun. The EU is suffering entirely due to market instability and a lack of confidence from investors. If they had this confidence, they would be recovering faster, the method of recover may speed/slow the process but the main issue is investor confidence, and that is what would be lost if the US was “perceived” as not being able to control its debt.
Though I do actually appreciate the time and info you have given, I don’t mean to undercut you anything in that regards.
You’re blaming the wrong philosophy.
Greece was so in debt that they didn’t qualify to join the EU. So Goldman Sachs took Greece’s debt off the books, and put it on their own books. They charged Greece a huge fortune for it, leaving Greece more in debt and holding a bunch of junk stuff that had been issued by New York banks that blew up in the big bank blow up of 2007.
Papandreou was their Prime Minister and he wanted to take a vote like they did in Iceland on whether or not to pay back the banksters. So they got rid of him and replaced him with Papademos, who used to be Vice President of the Central Bank (!).
Greece has some structural problems and the biggest is that the very rich don’t pay their fair share of taxes. They hide their money offshore.
Is the same thing happening in the United States? Yes. According to the CBO, corporations are showing more profits than they have in 40-50 years, and are actually above their pre-bust levels. But corporate revenues coming into the treasury are at a 40 year low. Why? Things like what Mitt Romney did, stashing their money in the Cayman Islands and elsewhere to dodge paying taxes on it.
The US loses more than $90Billion a year, according to the CBO, from rich folks and big corporations using tax loopholes. The amount of money we lose from tax dodging is more than we spend educating our entire next generation.
You can’t cut your way to prosperity.
We have 24 states that have raised taxes, increased spending, and seen their revenues go up and their unemployment decline. Things have gotten worse in the red states, and better in the blue states. So much better that they’re dragging the whole country up.
The following countries did the austerity thing of slashing government, cutting spending, firing government workers, cutting social programs, and pushing everything toward private ownership – the same advice the Republicans want us to follow. This is the same thing IMF imposed on Chile, Argentina and Mexico in the ‘80s, and they all went bankrupt.
How’s that working for Europe right now?
– Spain’s debt-to-GDP ratio was 36%. They took an austerity path and now they’re approaching 84%.
– Italy was at 105%, and after 2.5 years of austerity they are at 126%.
– Greece was a little over 100%; they’re at 160% now. Their economy shrank 6.8% last year and is at 7% this year.
– Portugal was at 107% but is now at 118%. Their economy shrank by 1.5% last year and is expected to contract by 3% this year.
Things are getting worse for every country that’s doing what the Republicans want us to do. Without growth, reducing debt levels becomes nearly impossible.
What you are watching is the robbing, raping, and pillaging of Europe.
Since the Feds are busting Ponzi schemes, why not shut down the biggest of all, Social Security?
Social Security (aka Federal Insurance Contribution Act) is not a Ponzi scheme. According to the Congressional Research Service, Congress has no contract with participants. There is no property right in entitlements. All entitlements are at the discretion of Congress. In addition, “entitlements” are synonymous with “gifts”. Gifts from the public treasury makes each recipient into a pauper at law.
In exchange for the civic sacrifice of debt assumption, the benevolent Congress dispenses charity (Welfare, Medicare, Pension), taken from others, minus a hefty cut for their benign management.
Congress will never voluntarily abolish Socialist InSecurity because 300 million “human resources” are pledged as collateral on the impossible to pay national debt. And the public debt cannot be questioned, pursuant to the 14th amendment.
Without the economic and legal value of the “contributors” (equally liable), the worthless Federal Reserve Notes would no longer be tender for private debt. Thus the economy would be mortally wounded.
Since there is no law compelling participation, nor punishing those who do not participate, national socialism is 100% voluntary. Yet millions are misled to enroll, believing that it is required in order to work in their nation, the U.S.A.
Socialism, by definition, abolishes absolute ownership by individuals (private property), and substitutes collective ownership (qualified ownership, i.e. Estate), with the State retaining an interest in you and yours.
Finally, usury, is mathematically impossible to pay in a finite money token system. The grotesque ten plus trillion national debt, only payable in lawful money, computes to an obligation for bullion that is 99.2 times greater than the whole world’s above ground supply.
This insanity is legal, because we all consented, officially. Of course, if you were misled by fraud or constructive fraud, you might wish to leave. However, the Soc Sec administration will not answer our requests for the procedure to leave.
What is happening with the UK’s national debt?
We seem to be making no efforts to pay it off, however David Cameron and Osbourne brag about how they have cut the deficit by a third… This is really annoying as national debt has actually increased under the coalition. Now you and me, we know they aren’t stupid. They had the best education money could buy and Cameron is the son of a stockbroker with a FIRST CLASS HONORS DEGREE FROM OXFORD he knows money very well. I can only see it as he is an enemy of the state deliberately undermining our economy (what little is left of it). What do you think about the national debt, the economy and the government agenda?
Like the UK national debt is a tad under £1.2 trillion (£1.4 trillion depending on which newspaper you believe) and STILL rising. In actual fact, the UK went bust in 1976. Every man, woman and child now owes around £20k each if you divide 1.2 trillion by 60 million!
@Neil – Its not just as easy as you think. First of all the govt has to pay interests to all those debt and from the looks of it, it’ll only grow so basically you’re outsourcing the problem to the generations to come.
Secondly, look at what happened to Greece. Markets hit them hard even when they didn’t reach Japanese levels of debt-to-GDP.
While I agree with you in the sense that some people, particularly Libertarians in the US and the girl in the question look too terrified for no reason about debt, they have a reason to be cautious.
How can I rid student loan debt??
I am a mother of 3…and have >$80,000 of student loans debts. I am employed making decent money, but am having difficulty repaying back since 3 maternity leaves and house mortgage less than my loans. i have already forbeared 3 X and am doing it again. I just feel left alone…for a productive mother and a middle class family (my husband recently started his own business. I already consolidated so that is not an option and I also have a fair interest rate 5%. Please help!
Been there, done that… Great interest rate, but yeah, that is a steep tab. Gonna have to decide what is important to you, and cut out everything else: magazines, cable TV, stuff like that, and bust it out. Even at $1000/month, it’s still gonna take 8+ years to pay it off. Sell some stuff, drive a cheaper car. Believe me, when you get done paying it off, it is like a HUGE WEIGHT off of your shoulders.
IS this a good idea to help pay off the USA debt?
The federal government should have a huge rummage sale.
Sell off all that old furniture in the White House. Old paintings and busts of past Presidents could net big money too.
There’s probably tons of unused military equipment lying around.
They could even take some stuff to the “Hardcore Pawn” shop to sell.
Hey, how about selling corporate naming rights for all those monuments? How’s does “The Geico Lincoln Memorial” sound? How about “The Trojan Washington Monument”? Heck, let’s just have our Congressmembers wear their corporate sponsors on their clothing like Nascar drivers do?
And autographs! We could have each of our politicians sign thousands of documents and photos and sell those! Who wouldn’t want a T-shirt signed by Joe Biden or Paul Ryan ?
It would be a good lesson in being humble for many politicians… Especially when they sign thousands of photos and it flops as they realize nobody wants a signed picture of a politician on their wall! Maybe dartboards with politicians as the bullseye would be a better seller?
But more seriously: no, it wouldn’t help. Most of the things you mention there would make so little money compared to our debts that it would be like flicking a penny to your bank and saying that it’s a payment on your million dollar mansion. It would accomplish virtually nothing at the cost of some very important cultural artifacts.
The only one that would raise a significant fund (still not significant on the level of our debt though) is the military hardware. But lots of military hardware is sold as surplus or passed down to law enforcement agencies or small ally countries…so basically no, there’s actually not a ton of it around, we pretty much sell what we can sell and use the rest to save money helping law enforcement or allies. Not to mention the government isn’t particularly interested in letting people (foreign or domestic) other than ally governments get hold of things like F-16 jets.
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