IDBillzFan Posted February 3, 2015 Share Posted February 3, 2015 Let's go a step further. Gatorman, what happens when the government can no longer service its debt? I'm still waiting for him to explain why balancing the federal budget makes no economic sense before my popcorn gets stale. Link to comment Share on other sites More sharing options...
Chef Jim Posted February 3, 2015 Share Posted February 3, 2015 Let's go a step further. Gatorman, what happens when the government can no longer service its debt? We're !@#$ed with historically low interest rates. Wait until they get back to normal levels. Link to comment Share on other sites More sharing options...
Tiberius Posted February 3, 2015 Share Posted February 3, 2015 Let's go a step further. Gatorman, what happens when the government can no longer service its debt? You are an idiot. When is that going to happen? Stupid question We're !@#$ed with historically low interest rates. Wait until they get back to normal levels. You brought this stupid point up before. When "normal" levels return, there is less need to borrow and the debt is usually smaller. But, tell us, what is a "normal" rate for interest? Link to comment Share on other sites More sharing options...
TakeYouToTasker Posted February 3, 2015 Share Posted February 3, 2015 You are an idiot. When is that going to happen? Stupid question You brought this stupid point up before. When "normal" levels return, there is less need to borrow and the debt is usually smaller. But, tell us, what is a "normal" rate for interest? Normal is a term relative to what the market dictates. Also, he's not talking about future debt, he's talking about the servicing of our current debt once interest rates rise, possibly significantly. Link to comment Share on other sites More sharing options...
IDBillzFan Posted February 3, 2015 Share Posted February 3, 2015 You are an idiot. When is that going to happen? Stupid question You brought this stupid point up before. When "normal" levels return, there is less need to borrow and the debt is usually smaller. But, tell us, what is a "normal" rate for interest? Hey, we're still waiting for you to tell us why balancing the federal budget hurts the economy. I'll make more popcorn. Link to comment Share on other sites More sharing options...
DC Tom Posted February 3, 2015 Share Posted February 3, 2015 You are an idiot. When is that going to happen? Stupid question What happens when when the value of the dollar increases? Or the tax burden on the economy required to service the debt becomes so high that the GDP contracts? Hell, why even collect taxes at all, if deficit spending isn't a problem? Link to comment Share on other sites More sharing options...
Wacka Posted February 3, 2015 Share Posted February 3, 2015 You are an idiot. When is that going to happen? Stupid question You brought this stupid point up before. When "normal" levels return, there is less need to borrow and the debt is usually smaller. But, tell us, what is a "normal" rate for interest? And the biggest partisan nut sucker of all chimes in. Link to comment Share on other sites More sharing options...
B-Man Posted February 3, 2015 Share Posted February 3, 2015 Hell, why even collect taxes at all, if deficit spending isn't a problem? Ooh, ooh,.........fairness ?....................................Soak the Rich ? Link to comment Share on other sites More sharing options...
Chef Jim Posted February 3, 2015 Share Posted February 3, 2015 (edited) What happens when when the value of the dollar increases? Or the tax burden on the economy required to service the debt becomes so high that the GDP contracts? Hell, why even collect taxes at all, if deficit spending isn't a problem? Oh no Tom see when interest rates increase revenue increases because of the taxes paid on the income from those bonds. And of course we know that the government will use those increased revenues to a) reduce the debt b) pay the higher interest payments and c) buy everyone a rainbow farting unicorn. Edited February 3, 2015 by Chef Jim Link to comment Share on other sites More sharing options...
DC Tom Posted February 3, 2015 Share Posted February 3, 2015 Oh no Tom see when interest rates increase revenue increases because of the taxes paid on the income from those bonds. And of course we know that the government will us those increased revenues to a) reduce the debt b) pay the higher interest payments and c) buy everyone a rainbow farting unicorn. I tried to get a patent on that exact economic theory...but the USPTO won't accept patent applications on perpetual motion devices. Link to comment Share on other sites More sharing options...
B-Man Posted February 3, 2015 Share Posted February 3, 2015 USA TODAY EDITORIAL: Obama’s not entitled to ignore the deficit: Budget plan wouldn’t deal with long-term financial woes, driven largely by the soaring costs of benefit programs. And while Obama brags about dropping the deficit (down to the levels he complained about when Bush was President) the national debt has grown by 50%. . Link to comment Share on other sites More sharing options...
IDBillzFan Posted February 3, 2015 Share Posted February 3, 2015 Hey, did gatorman explain to us why balancing the federal budget hurts the economy? Did I miss it? Anyone? Gatorman, can you re-post it here in case I went by it? I'll make more popcorn. Link to comment Share on other sites More sharing options...
Tiberius Posted February 3, 2015 Share Posted February 3, 2015 What happens when when the value of the dollar increases? Or the tax burden on the economy required to service the debt becomes so high that the GDP contracts? Hell, why even collect taxes at all, if deficit spending isn't a problem? Whew! Thought you were also going to ask me what happens when pigs fly! If you want to play hypotheticals, what happens when cuts in government spending hurt growth, cut tax revenue and force us to borrow more? Sky if falling! Who ever thought that borrowing while rates were low was such a bad idea? Link to comment Share on other sites More sharing options...
/dev/null Posted February 3, 2015 Share Posted February 3, 2015 http://blogs.wsj.com/economics/2015/02/03/the-legacy-of-debt-interest-costs-poised-to-surpass-defense-and-nondefense-discretionary-spending/?mod=WSJ_hpp_MIDDLENexttoWhatsNewsForth Link to comment Share on other sites More sharing options...
Chef Jim Posted February 3, 2015 Share Posted February 3, 2015 Who ever thought that borrowing while rates were low was such a bad idea? Who's talking about borrowing when rates are low? Government's thirst for spending will not slow down when rates rise. Double the current yields on the 10-30 year debt and it's still rather low but our debt service will double on the interest alone. And where is the money going to come from when those bonds mature? Link to comment Share on other sites More sharing options...
IDBillzFan Posted February 3, 2015 Share Posted February 3, 2015 Whew! Thought you were also going to ask me what happens when pigs fly! If you want to play hypotheticals, what happens when cuts in government spending hurt growth, cut tax revenue and force us to borrow more? Sky if falling! Who ever thought that borrowing while rates were low was such a bad idea? Hey, let's not talk hypotheticals. Let's talk reality. You said balancing the federal budget will hurt the economy. Can you explain how and why? Thanks. I'll make some more popcorn. Link to comment Share on other sites More sharing options...
3rdnlng Posted February 4, 2015 Share Posted February 4, 2015 Whew! Thought you were also going to ask me what happens when pigs fly! If you want to play hypotheticals, what happens when cuts in government spending hurt growth, cut tax revenue and force us to borrow more? Sky if falling! Who ever thought that borrowing while rates were low was such a bad idea? Do you think that the government is borrowing long term at a fixed rate? Link to comment Share on other sites More sharing options...
B-Large Posted February 4, 2015 Share Posted February 4, 2015 Aside from the fact balancing the budget makes no economic sense, you are right... Think of it this way- instead of 300b annually going to debt service paying for all those cumulative deficits, 300b a year could be appropriated for modernizing, expanding and upgrading infrastructure. The problem with running deficits year after year is it steals from the future. no Dick Cheney, they DO matter. No president Obama, they DO matter. No Gatorman, they DO matter Link to comment Share on other sites More sharing options...
IDBillzFan Posted February 4, 2015 Share Posted February 4, 2015 Hey, did gatorman explain yet how balancing the federal budget would be bad for the economy? No? We'll wait. I'll get more popcorn. Link to comment Share on other sites More sharing options...
Tiberius Posted February 4, 2015 Share Posted February 4, 2015 Normal is a term relative to what the market dictates. Also, he's not talking about future debt, he's talking about the servicing of our current debt once interest rates rise, possibly significantly. So, we are suppose to concentrate on paying back now? Instead of spending on government you want to pay down debt? Counterproductive Think of it this way- instead of 300b annually going to debt service paying for all those cumulative deficits, 300b a year could be appropriated for modernizing, expanding and upgrading infrastructure. The problem with running deficits year after year is it steals from the future. no Dick Cheney, they DO matter. No president Obama, they DO matter. No Gatorman, they DO matter I'm sorry, are you suggesting we pay off the debt? We can borrow pretty cheaply and do all those things we totally need to do. Link to comment Share on other sites More sharing options...
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