The Debt Ceiling I'm a Id10t

I don't understand this , "we don't have money to pay the current debt" But if we allow more debt we can keep paying on time ? How on Earth does that math work and who on Earth will allow us to go more in debt - Please explain this to me

Should I go back to school or can someone tell me how to use this formula in everyday life ?

a reply to: Ravenwatcher

Easy, it’s a type of Ponzi scheme. Borrow to pay your current debt then rinse and repeat. Works for a while, then it all falls apart.

a reply to: Ravenwatcher

There's a recent article on this topic by Nobel Prize-winning economist Paul Krugman. Here's the main idea of it:

"Whenever I write about debt and deficits, I receive the same letter — OK, not exactly the same letter, but a number of letters with more or less the same gist. They read something like this: “If I borrow money from the bank, the bank expects me to pay the money back. Why isn’t the same true for the government? Why can we keep borrowing when we already owe $31 trillion?”

Just about every economist will reply that it’s misleading to make an analogy between household and government finances. But it seems to me that we often aren’t clear enough about why, perhaps because we don’t say it bluntly enough. So here’s the difference: You are going to get old and eventually die. The government isn’t.

I don’t mean that governments are immortal. Nothing is, and no doubt someday America will, as Rudyard Kipling put it, be “one with Nineveh and Tyre.” But individuals face a more or less predictable life cycle in which their earnings will eventually dwindle.

And lenders therefore demand that individual borrowers pay off their debts while they still have the income to do so.

Governments, on the other hand, normally see their revenues rise, generation after generation, as the economies they regulate and tax grow.

Governments, then, must service their debts — pay interest and repay principal when bonds come due — but they don’t necessarily have to pay them off; they can issue new bonds to pay principal on old bonds, and even borrow to pay interest as long as overall debt doesn’t rise too much faster than revenue.

In fact, when governments for one reason or another run up large debts, it is, as far as I can tell, unusual to pay those debts off.

The most famous example, albeit one that many people apparently don’t know about, is the debt America incurred to fight World War II. By the war’s end, this debt was around 100% of gross domestic product — roughly comparable to the debt level today. So how did we pay off that debt?

We didn’t. John F. Kennedy entered the White House with federal debt roughly the same as it was on V-J Day."

You can read the whole article here, if you want to:

www.sanjuandailystar.com...

originally posted by: Topcraft
a reply to: Ravenwatcher

Easy, it’s a type of Ponzi scheme. Borrow to pay your current debt then rinse and repeat. Works for a while, then it all falls apart.

You beat me to it. Unless someone can explain how it doesn't end with the balloon popping... then yeah the balloon is inevitably going to pop.

You and your countrymen are the collateral.

a reply to: Ravenwatcher

a reply to: Ravenwatcher


Everything or Nothing for the Debt Ceiling...........

a reply to: Zanti Misfit

I love that episode, it’s number two on my list. Right behind “ To serve man “.

a reply to: Ravenwatcher

this what happens when they spend more than they take in

a reply to: Ravenwatcher

"we don't have money to pay the current debt" But if we allow more debt we can keep paying on time ? How on Earth does that math work

Here's the not so fun part: the math DOESN'T work. The US can NEVER pay down this debt, nor can we even keep up with the interest payments if politicians continue to kick the can down the road (spoiler alert: THEY WILL).

This is going to be a disaster for US citizens and every common person who receives any type of income or benefits in the form of US dollars. Ultimately, the government will probably have to mandate that all entities & citizens "invest" in their T-bills since globally their appeal is wearing thin and most are waking up to the whole charade... that will only make the day of reckoning worse but delay it somewhat. I fear for my children (and if they ever have children)

This is the nightmare fuel that keeps me up at night (but sadly I'm slowly becoming desensitized to it all myself, even though I recognize the gravity of the situation unlike 99% of people)

originally posted by: Topcraft
a reply to: Zanti Misfit

I love that episode, it’s number two on my list. Right behind “ To serve man “.

Oh , we are getting Served as we Speak too ......


If you Have No More Money , what do Most People Do then ?


1. Do Not Spend at All

2. Spend Other Peoples Money to Benefit Themselves Regardless of the Consequences

3. Ask the Government for More Free Money to Spend

4 . Figure Ways to Earn More Money Honestly

5. Figure Ways to Earn More Money Dishonestly

6. Just get By with the Little Money you Do Have and Hope for the Best

7. Without Any Money you should just Kill Yourself and that Problem goes Away

8. Pray to God for it



HINT - Finite Wealth Needs to be Created then Recycled Over and Over *

Simply put, it's called "borrowing from Peter to pay Paul"
Rainbows
Jane

originally posted by: Ravenwatcher
I don't understand this , "we don't have money to pay the current debt" But if we allow more debt we can keep paying on time ? How on Earth does that math work and who on Earth will allow us to go more in debt - Please explain this to me

Should I go back to school or can someone tell me how to use this formula in everyday life ?

It works because you dont question or rebel against your corrupt and nepotistic politicians..... Us in Europe have spotted the problem decades ago, and kept wondering how the heck you can all be so stupid. I genuinely don't understand why you are not rebelling. Your country is NOT a balanced economy, but it's easier to remain blind and pretend than actually facing the issues.

a reply to: Ravenwatcher

Can we refinance at a lower rate? That might help.

originally posted by: Zanti Misfit

originally posted by: Topcraft
a reply to: Zanti Misfit

I love that episode, it’s number two on my list. Right behind “ To serve man “.

Oh , we are getting Served as we Speak too ......

If you Have No More Money , what do Most People Do then ?


1. Do Not Spend at All

2. Spend Other Peoples Money to Benefit Themselves Regardless of the Consequences

3. Ask the Government for More Free Money to Spend

4 . Figure Ways to Earn More Money Honestly

5. Figure Ways to Earn More Money Dishonestly

6. Just get By with the Little Money you Do Have and Hope for the Best

7. Without Any Money you should just Kill Yourself and that Problem goes Away

8. Pray to God for it



HINT - Finite Wealth Needs to be Created then Recycled Over and Over *

9. Use what you've got left to build a guillotine because we're going to need a lot of them when the average person starts asking the same question OP is asking

Edit:
Hell they might even pay you for it. In USD.... doesn't burn well, isn't good for TP...

The only difference between this crash and the last few we've seen is that the bulk of USD isn't printed, so deleting it won't make more trash.
The shipping containers full of cash Obama sent over seas will be remembered forever... since those worthless notes will be spread across the desert for the next ten thousand years

a reply to: Topcraft

The part I don't understand then is , other countries must know this (countries whom are owed ) , and yet they allow it to continue ? And as every country has debt to every other country it makes even less sense. Never mind the billions sent to other countries in 'aid'.

a reply to: lordcomac

,," since those worthless notes will be spread across the desert for the next ten thousand years "

So True . Maybe even a Bright Bedouin will Figure out a Way to make Paper Airplanes for his Children to Play with . No , the Wealth on Earth is ALL Taken , but there is Gold and Precious Things in them there Asteroids out in the Deep Dark Outlands of Space above Us . Devalue Everything Sounds Nice...........*) ...........

a reply to: ancientlight

You're not going to like this :






National-Debt™ isn't owed to other Nations™.
Almost every Nation™ is in Debt™, to the same Greedy™ Pedo-Pigs™.

Why ?

They stole it, and we, along with our predecessors, let them get-away with it, every minute, of every day.

a reply to: Ravenwatcher

Recently Pentagon had 3 billion more but for Ukraine not for the American people.
people arent yet still angry?