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View Full Version : U.S. Issues US debt will keep growing even with recovery


Donger
02-14-2010, 07:51 AM
http://news.yahoo.com/s/ap/20100214/ap_on_bi_ge/us_deficit_crunch

WASHINGTON It's bad enough that Greece's debt problems have rattled global financial markets. In the world's largest economic and military power, there's a far more serious debt dilemma.

For the U.S., the crushing weight of its debt threatens to overwhelm everything the federal government does, even in the short-term, best-case financial scenario a full recovery and a return to prerecession employment levels.

The government already has made so many promises to so many expanding "mandatory" programs. Just keeping these commitments, without major changes in taxing and spending, will lead to deficits that cannot be sustained.

Take Social Security, Medicare and other benefits. Add in interest payments on a national debt that now exceeds $12.3 trillion. It all will gobble up 80 percent of all federal revenues by 2020, government economists project.

That doesn't leave room for much else. What's left is the entire rest of the government, including military and homeland security spending, which has been protected and nurtured by the White House and Congress, regardless of the party in power.

The U.S. debt crisis also raises the question of how long the world's leading power can remain its largest borrower.

Moody's Investors Service recently warned that Washington's credit rating could be in jeopardy if the nation's finances didn't improve.

Despite election-year political pressure from voters for lawmakers to restrain spending, some recent votes suggests that Congress, left to its own devices, probably isn't up to the task of trimming deficits.

Donger
02-14-2010, 07:53 AM
Take Social Security, Medicare and other benefits. Add in interest payments on a national debt that now exceeds $12.3 trillion. It all will gobble up 80 percent of all federal revenues by 2020, government economists project.

That should scare the crap out of everyone.

mlyonsd
02-14-2010, 07:58 AM
Take Social Security, Medicare and other benefits. Add in interest payments on a national debt that now exceeds $12.3 trillion. It all will gobble up 80 percent of all federal revenues by 2020, government economists project.

That should scare the crap out of everyone.

I was going to quote and higlight the same sentence.

Holy ****.

2020 is my goal year for retiring. Looks like my wife might have to get a third job.

mlyonsd
02-14-2010, 08:02 AM
I think SS could be easily fixed if everyone under 50 has their SS witholdings tripled.

HonestChieffan
02-14-2010, 08:06 AM
The only answer at this point is for a major change in government behavior.

We should be moving rapidly to controls on spending, elimination of un necessary spending on nice to have programs, elimination of federal programs that can and should be done by the states, and a major focus on reviving business growth and true economic activity. More focus on exports and attracting global businesses to move to or invest in the US.

Basically a nearly 180 degree shift form what is happening today.

It would be painful and difficult but we need leaders and politicians who have the interests of this country as the main focus, not the interest of the next election.

BigRedChief
02-14-2010, 09:27 AM
The only answer at this point is for a major change in government behavior.

We should be moving rapidly to controls on spending, elimination of un necessary spending on nice to have programs, elimination of federal programs that can and should be done by the states, and a major focus on reviving business growth and true economic activity. More focus on exports and attracting global businesses to move to or invest in the US.

Basically a nearly 180 degree shift form what is happening today.

It would be painful and difficult but we need leaders and politicians who have the interests of this country as the main focus, not the interest of the next election.
Dude, entitlements is the cause of of our debt. Unless you fix that exploding cost we have no chance at economic stability.

Plus our lifes are permantely changed. We don't make chit. We don't export. Other countries are the leaders in building their infrastruture for bullet trains, wind turbines, electric grids from wind etc.

HonestChieffan
02-14-2010, 09:30 AM
Dude, entitlements is the cause of of our debt. Unless you fix that exploding cost we have no chance at economic stability.

Plus our lifes are permantely changed. We don't make chit. We don't export. Other countries are the leaders in building their infrastruture for bullet trains, wind turbines, electric grids from wind etc.

Dude...

It is a entire system issue. Every single thing we spend money on should be examined from about 5 directions and if it is not a necessity, it needs to be cut or reduced. The fact is we are in way way deeper than we want to admit.

Taxes will have to go up and spending will have to go down and entoitlements will have to be part of the reductions. There can be no sacred cows till we have started to right this ship.

The Mad Crapper
02-18-2010, 12:31 PM
In a tough economy, you have to make every dollar count. The Obama administration goes further, counting some stimulus dollars twice.