Sequester Has Been Added to the U.S. Debt Clock : Our Deficit is Falling !

Originally posted by kyviecaldges
reply to post by Wrabbit2000

 

I calculated wrong. I missed a decimal.

The amount of cash in circulation at this time is 1.17 trillion.

But that only exemplifies my point even more, because for every one of those dollars that we owe on our deficit, we actually owe a federal reserve note. The deficit can only be paid in federal reserve notes, and federal reserve notes by nature are instruments of inflation.
For every dollar/fed note we borrow to facilitate our economy, we owe more than 1 dollar back.
This is all econ 101 stuff.

We never have enough money in circulation to pay off the value of federal reserve notes.
Now, maybe foreign capital could take care of that, but that is irrelevant.

By removing billions from the economy, we are creating deflation, which is the exact opposite of what we need.

You can speculate and I can speculate, but in the end we can only see what happens, and I predict that this sequester will stall growth and effectively destroy any headway we have created.

OOPS!

"I predict that this sequester will stall growth and effectively destroy any headway we have created."

Well, that is what happens when someone COMPLETELY IGNORES the private sector.

You appear to have blinders on.

When the U.S. Government doesn't spend like crazy then the U.S. economy automatically

gets flushed down the toilet.

Did you by any chance see the Job Report today??? Unemployment rate fell to 7.7%.

236,000 jobs added!

So much the Sequester Doom & Gloom Monster.

We have switched to Plan B: Put the U.S. Government in --- neutral ---

and grow the Private Sector instead.

Current USA economic boom : Fracking North Dakota & Residential New Homes

are selling fast! Praying for an economic disaster won't work just because the

Sequester is now in effect.

Originally posted by TauCetixeta

Originally posted by Majiq1
reply to post by TauCetixeta

 

Yeah I see that, but that is just the budget deficit. That will continue to fall as the "sequester cuts" increase. The problem is that the sequester cuts will stop at about 84-85 billion. they are already up to over 15 billion. sequester is a start but doesn't do nearly enough and will not bring down the debt. In fact the debt is on a steady rise. We need real cuts in spending, not this sequester which only slows growth of government

Food For Thought: Is it possible will see a Sequester 2.0 in the near future?

For Example: Another $85 Billion?

History Can repeat itself.

Bringing Down The National Debt: That will require an economic boom like
President Clinton saw during the Dot.com BOOM.

I remember when the first SURPLUS arrived for Clinton. Washington D.C. was caught
off guard when the......unexpected.....Cap Gains Tax Checks arrived at the IRS.
Also, Newt controlled spending. Goal: Aim For Zero

4 years of surpluses arrived during the 1990s.

When surpluses arrive again THEN we can talk about " Bringing Down The National Debt".

edit on 8-3-2013 by TauCetixeta because: (no reason given)

You are right. To start really bringing down the debt we will need either a huge economic boom, continued tax increases (which wouldn't work anyway) or very deep cuts that would be painful for everyone for a while.

Unfortunately the more government involves itself in the market, the less likely we are to see another boom like the 90's. I feel that spending cuts are the way to go even if they will hurt a bit to begin with. In 90-91 the defense budget saw deeper cut than in this sequester and those cuts are what pushed companies who were primarily defense contractors into the private market. Those very same companies are the ones who then used their technology to develop the internet. I know that is a hard pill to swallow for those who believe it was Clinton and Gore who saved us in the nineties.

I believe it will take similar policies now to get the economy going again. Privatization of federal departments like education, labor etc... by slashing the budgets of those departments, along with tax decreases, and easing of regulations that make doing business in America a very hostile environment would inject money and jobs into the private market which is where we need it.

I know the Feds hate giving up a penny but they are just hurting themselves. Increased taxes and regulations do nothing but cut economic growth by driving companies out of the U.S. to do business. That means they lose the tax revenue of the companies, as well as the tax revenue that would be generated from the employees of the companies.

It really comes down to the fact that to ensure the long term success, and prosperity of the American people, the Federal Government would have to relinquish power to the states and the citizens. So far they have been unwilling to do so.

Originally posted by kyviecaldges
OOPS!

"I predict that this sequester will stall growth and effectively destroy any headway we have created."

Well, that is what happens when someone COMPLETELY IGNORES the private sector.

You appear to have blinders on.

When the U.S. Government doesn't spend like crazy then the U.S. economy automatically

gets flushed down the toilet.

Did you by any chance see the Job Report today??? Unemployment rate fell to 7.7%.

236,000 jobs added!

So much the Sequester Doom & Gloom Monster.

We have switched to Plan B: Put the U.S. Government in --- neutral ---

and grow the Private Sector instead.

Current USA economic boom : Fracking North Dakota & Residential New Homes

are selling fast! Praying for an economic disaster won't work just because the

Sequester is now in effect.

I agree with what you are saying but I will point out that the unemployment numbers are not very accurate. A large part of the drop is because over 130,000 people dropped out of the job market.

Also we haven't come close to putting the government in neutral. The Sequester is a good start but there needs to be more action taken to further reduce spending and regulations and return money to the private sector.

They are all bat sh!t crazy. The first thing they do is go after the janitor the one that is the least paid and least impact on anything. Everything that is given to them is paid by the taxes. Not much is spent directly out of their wages. They just don't want to admit that they are living high off the hog. There is lots to be cut there. They need to come back to reality plain. Down here where the majority live off a grossly underpaid poverty level income.

Originally posted by sean
They are all bat sh!t crazy. The first thing they do is go after the janitor the one that is the least paid and least impact on anything. Everything that is given to them is paid by the taxes. Not much is spent directly out of their wages. They just don't want to admit that they are living high off the hog. There is lots to be cut there. They need to come back to reality plain. Down here where the majority live off a grossly underpaid poverty level income.

CBS News picked up the phone and made a quick call to the Capitol Building.

Obama was lying. There will be no reductions in pay for the janitors.

Obama will probably stop making stuff up for awhile.

There is lots of fat to be cut but Obama wants to cut the muscle in order to inflict

MAXIMUM PAIN on the American people.

A good President of the United States would NOT intentionally inflict MAXIMUM PAIN

on the American people.

A President of the Democrat Party WOULD inflict maximum pain.

reply to post by Majiq1


"We haven't come close to putting the U.S. Government in neutral."

Look at it this way: The Federal Government spent about $3.5 Trillion in 2012.

The Federal Government will spend the exact same amount plus only $15 Billion in 2013.

That looks close enough for me. The U.S. Government is in neutral due to the Sequester.

Out Go = Neutral

In Come = skyrocketing to a record high in 2013 ......$2.7 Trillion

Result: U.S. Federal Budget Deficit number at U.S. Debt Clock.org is...steadily decreasing.

That has the liberals / progressives steaming mad !

They want to crash the whole system and then start over. No such luck in 2013.

America will NOT be transformed into France this year.

reply to post by TauCetixeta


The problem is that your analogy is a bit short sighted. The sequester does stall the growth of government for the year, and yes, until the "sequester cuts" part of the clock reaches 84 billion (which will happen in less than 3mos) the 2013 deficit will continue to drop.

You see, the 2013 budget didn't include the sequester which is why you see the falling number. That number (U.S. Federal Budget Deficit) shows this. Next year however the budget will grow more still. The number you are paying so much attention to means nothing in the long term. The number that matters, the one that we need to see on the decline is "U.S. National Debt"

All we are doing is chipping 85 billion off of a deficit of over a trillion dollars. Saying that puts government spending in neutral is like me getting my car up to 150mph, and claiming that I am no longer speeding because I back it down to 149mph.

I will try one more hypothetical to try and help you understand. You do your yearly budget and it comes out to say 80K, but all you are going to make is 50k. You have a 30k budget deficit. To help you decide to "sequester" 1K from your budget. As that 1k gets cut here and there you see your deficit dropping until you are left with only a 29k deficit. It is a move in the right direction, but in the overall scheme of things it really does nothing as your overall debt is still skyrocketing. What about next year? You get a 2k raise at your job (increased tax revenue), and have another 1k being sequestered. Sounds good right? The problem is your budget for next year is going to be 90K. Now even with the sequester and your raise, your deficit is 37k. Your sequestration has done virtually nothing, and will continue to do nothing until you decide to start living within your means.

As a nation we have to start living within our means. Until we do no tax hikes, and no economic boom will ever help.

reply to post by Majiq1


It is wrong for you to assume there will not be a Sequester 2.0.

Sequester 2.0 could be $120 Billion. Time will tell.

As for right now, i am pleased to see the U.S. Federal Budget Deficit .....decreasing.

We had to start somewhere. We started with Sequester 1.0.

This bar chart predicts a deficit of less than $1 Trillion.

It's not pretty but $900 Billion will have to do for right now.

reply to post by TauCetixeta



The chart is based on current spending rates. And a steady increase in taxes. The sequester doesn't accomplish this, and the tax hikes won't either as spending will not remain at the current level.

Originally posted by Majiq1
reply to post by TauCetixeta

 

The chart is based on current spending rates. And a steady increase in taxes. The sequester doesn't accomplish this, and the tax hikes won't either as spending will not remain at the current level.

Look at the big picture. The U.S. Stock Market is at record highs. Dow 14,300+

The chart does not take into account a possible tidal wave of Cap Gains Tax checks that could

make that 2013 Red Bar even smaller. We simply have to wait until December for more data.