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Krazysh0t
You know what else is interesting? That you believe that continually raising the debt ceiling is a viable solution to fixing our economy.
greencmp
reply to post by AlienScience
They better not be caving but, I don't think that your observation indicates that.
The longer this shutdown lasts, the better it is for America and Americans.
Krazysh0t
You know what else is interesting? That you believe that continually raising the debt ceiling is a viable solution to fixing our economy.
beezzer
reply to post by AlienScience
Actally, the budget was about defunding Obamacare and the debt ceiling issue was about fiscal responsibility.
Or the GOP are all devils drinking the blood of llamas from the skull cup of viking virgins.
Either/or.
Krazysh0t
You know what else is interesting? That you believe that continually raising the debt ceiling is a viable solution to fixing our economy.
AlienScience
greencmp
reply to post by AlienScience
They better not be caving but, I don't think that your observation indicates that.
The longer this shutdown lasts, the better it is for America and Americans.
They are offering a proposal to Obama this afternoon...looks like they have already caved.
And I'm sorry, but thinking that the longer this shutdown continues is a good thing for the country or the citizens is just really stupid.
They are offering a proposal to Obama this afternoon...looks like they have already caved.
House Republican leaders said Thursday they will offer a temporary increase in the federal debt ceiling in exchange for negotiations with President Obama on longer-term “pressing problems,” but they stopped short of agreeing to end a government shutdown now in its 10th day.
The House Republicans essentially are offering a “clean” debt-limit increase in exchange for negotiations over reopening the government, aides said. The government would not open until Obama agreed to “structural reforms” to the tax code and federal health programs.
Krazysh0t
reply to post by AlienScience
Ah the tired debt ratio argument. The argument that we can have a debt as high as we want as long as GDP is high enough. This despite GDP calculations can take into account the same dollar multiple times (meaning it would be physically impossible to take the nation's entire yearly GDP and pay the debt with it). Ignoring the fact that a country should have a debt to GDP ratio of about 40% (ours is over two times that), this is a weak judge of a healthy economy. Not to mention we don't pay the debt with our GDP, we pay it with our taxes. So your analogy is kind of misinformed.
The reason I bring this up is interest. Interest works through a percentage of the debt, so the higher the debt the higher the interest payment. Interest also tends to rise exponentially, so the higher the debt grows, the interest payment grows even faster.
Right now our interest payment is less than all the taxes we take in. What do you think will happen when the interest payment grows higher than the amount of incoming taxes the government takes in? Do you understand what that means at all? Before you answer, I'll just explain it to you anyways. That means that no matter how much money the government allocates towards servicing the debt, we would NEVER be able to pay the debt off. It would be mathematically impossible. Our children wouldn't be able to do it and neither would any of our ancestors. This is because the debt will increase forever even if the government doesn't spend a single penny and just pays on the debt. This would also cause a default.
The thing is that this isn't some sort of possibility, it is an inevitability. This will happen. It is simple math. So THAT is why believing that continually raising the debt ceiling is NOT a solution to our economic troubles.
Also one last point. If you honestly believe that we have a healthy economy, than you are surely a lost soul who has been blinded by the Democratic party's rhetoric. Since we don't have a healthy economy, then one can come to the conclusion that the economy needs fixing. This should just be standard knowledge, not something "interesting".edit on 10-10-2013 by Krazysh0t because: (no reason given)