The National Debt

[Edward100]

I see the debt clock ticking away at the top of this forum. The figures on it are eye-openers for sure. I would like to discuss this with you. There is no way for anyone to realistically say the average person could ever pay what they say we owe. The USA is responsible for many countries around the world to make money and survive. How can the world “Bite the hand that feeds them?” If America stopped buying from other countries, what would it do to us or to them? I’ve heard it said, “As America goes; so goes the world.” Is America too big to file bankruptcy? What would happen if America did?

[Darrell KSR]

The debt clock always depresses me when I see it. But it grounds me, too, and I think every American should be aware of it before they vote.

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[Doc]

What bothers me more than the total debt is the debt per citizen vs debt per taxpayer. Every man, woman and child "owes" nearly $55k yet its just the taxpayers that will fit the bill at over $136k each. Don't seem right to me!

[Darrell KSR]

Babies should pull their weight!

None of it seems right to me. It is overwhelming, in all seriousness.

[Edward100]

I’m concerned about how we can manage this monster. We are beyond paying this off. They need to put on there the amount it would take just to pay the interest. It’s like we owe a loan shark and we’ll never be able to get even. How would the world threaten us like a loan shark would an individual? Beat us up or break our legs. Could they demand public real estate or foreclose on America? What choice(s) do they have? Again, I ask are we too big to worry about what the world thinks?

[Doc]

I’m concerned about how we can manage this monster. We are beyond paying this off. They need to put on there the amount it would take just to pay the interest. It’s like we owe a loan shark and we’ll never be able to get even. How would the world threaten us like a loan shark would an individual? Beat us up or break our legs. Could they demand public real estate or foreclose on America? What choice(s) do they have? Again, I ask are we too big to worry about what the world thinks?


Well that won't happen. What, is China going to "break our legs"? In order to do that you have to be bigger and meaner than us, and unless Obama and those who think like him continue to get re-elected to the point where they gain total control of both houses and the presidency, such that this nation becomes weak enough, that won't happen. Could the US default? Sure but what recourse would China have? Economically it would be a disaster. The US wouldn't be able to barrow money (personally I'd be fine with that) but it would be economically crippling because the dollar would go the way of the peso and Lira.... and lose incredible value and no longer be the world standard currency.

What is more likely to happen is that the US just kicks the printing presses on FASTER and prints more money and devalues what we have more and more making your money less valuable = inflation. Pays off the debt to china and everybody else with worthless paper and we live with the consequences for decades, or better stated our children live with the consequences because we will be dead and buried.

[Edward100]

I appreciate your input, Doc. It’s a slow time of the year and I thought this subject would get more responses. I agree with what you say and did before I posted this thread. Because of what it is… there is no cure and the monster will grow bigger and bigger. China can’t do without America not buying from them and neither could the rest of the world for that matter. I guess it boils down to… we can’t pay and there’s nothing you can do about it. Things don't look good today and tomorrow doesn't look any better. If that is the case then I don’t need to worry about the Debt Clock. Guess I’ll just kick back, relax and let the good times roll. As it was said, “Eat, drink and be merry for tomorrow we die.”

[Doc]

Oh, we will pay. That isn't a concern. The concern is that we will pay with worthless money. That is a very big concern. As a child I always wondered why the government didn't just print money and make everybody millionaires. It made sense to a 10 year old, but it makes no sense to a 50 year old however it is how the debt will be solved. The US will just print a bunch of dollars that will devalue our currency and pay back what we owe. The 1000 dollars you have in the bank today will only buy 100 worth of stuff when they do it though so ultimately its you that pays it because your money is worth less.

[KeithKSR]

Lots of talk about Russia and China wanting to move away from the dollar as currency of choice for international trading. While this may be good for Russia I am not seeing how it could be anything but bad for the Chinese given the US debt they hold.

[blueboss]

Sadly the national debt ticker is ticking way faster than the presidential election clock. We're going to need a way bigger ticker by the time the clock expires.

[KeithKSR]

Sadly the national debt ticker is ticking way faster than the presidential election clock. We're going to need a way bigger ticker by the time the clock expires.

The increasing debt ticker will only go faster and faster at some point the interest on the debt will eclipse the money the government takes in.