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    The debt

    Before today's passage of more giveaways by the numskulls in DC, my projection was the debt caused by the tax act would approach 3 trillion not the 1.5 maximum that was set. With these new giveaways I think 3 trillion is a lock. Is their any mandate, in either law, to force Congress to act when the debt goes through the roof?

    #2
    Originally posted by Kram BergGold View Post
    Before today's passage of more giveaways by the numskulls in DC, my projection was the debt caused by the tax act would approach 3 trillion not the 1.5 maximum that was set. With these new giveaways I think 3 trillion is a lock. Is their any mandate, in either law, to force Congress to act when the debt goes through the roof?
    Rather than raising the debt limit as they have in the past, last nights bill just makes any debt incurred by March 2019 all hunky dory.

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      #3
      Spend like there is no tomorrow

      Originally posted by Kram BergGold View Post
      Before today's passage of more giveaways by the numskulls in DC, my projection was the debt caused by the tax act would approach 3 trillion not the 1.5 maximum that was set. With these new giveaways I think 3 trillion is a lock. Is their any mandate, in either law, to force Congress to act when the debt goes through the roof?
      The debt went through the roof, out the basement, and through the walls a looooong time ago.

      The only thing that has kept it from getting "worse" is the artificially low interest rates and the government's cost of borrowing. When interest rates start to climb, even just to approach historical ranges, the old "you ain't seen nothing yet!!" becomes relevant. I may not have been paying close attention, but I thought I heard a knowledgeable talking head say the scenario certainly exists, in the foreseeable future, where the entire GDP would be roughly 1:1 with the debt borrowing costs.

      FE

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        #4
        [QUOTE=FEDUKE404;189965 I may not have been paying close attention, but I thought I heard a knowledgeable talking head say the scenario certainly exists, in the foreseeable future, where the entire GDP would be roughly 1:1 with the debt borrowing costs.

        FE[/QUOTE]

        That doesn't make sense. Interest payments need to be made to avoid default. 100% of GDP would equate roughly to 100% tax rates. Seems like default would occur long before it hits 100%

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          #5
          Reserve Currency of the World!

          Just keep in mind that the good old American $ is the world's reserve currency so USA can get away with printing money and running a deficit! Other countries can't do that!
          No matter how much debt we have other countries will still be buying US bonds.
          Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

          Comment


            #6
            GDP vs national debt

            Originally posted by kathyc2 View Post
            That doesn't make sense. Interest payments need to be made to avoid default. 100% of GDP would equate roughly to 100% tax rates. Seems like default would occur long before it hits 100%
            Perhaps I got my words tangled. Consider: "The nationís debt is now bigger than its gross domestic product, which was an estimated $19.23 trillion in the second quarter. Debt as a share of GDP rose steeply during and after the 2008 financial crisis. Since 2013 it has equaled or exceeded GDP, which had not been seen since the end of World War II."

            Source: http://www.pewresearch.org/fact-tank...u-should-know/

            I'll try to avoid politically-leaning posts and other non-tax stuff in the future. Apologies to all.

            FE

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              #7
              It depends on it you look at total debt which includes money gov't owes to itself from trust fund (SS, MC) accounts or debt held by the public.

              I would encourage people that have a true interest to look at CBO 10 year projections. https://www.cbo.gov/about/products/b...conomic-data#3 I don't think the future looks good.

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                #8
                Just give it time. More businesses will start and or come back to the USA with the lower tax rate. Thus employing more individuals. Long story short. I would much rather have 50 million businesses in the USA employing 270 million people paying the current tax rates. Than 37 million companies employing 200 million at the old tax rate. Not to mention unemployment rate dropping and welfare benefits dropping. Rome wasn't built in a day. And hey, if everything goes to crap in a hand bag, well, you better stock up on ammunition. I have.

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                  #9
                  Originally posted by Twin Turbo Z View Post
                  Just give it time. More businesses will start and or come back to the USA with the lower tax rate. Thus employing more individuals. Long story short. I would much rather have 50 million businesses in the USA employing 270 million people paying the current tax rates. Than 37 million companies employing 200 million at the old tax rate. Not to mention unemployment rate dropping and welfare benefits dropping. Rome wasn't built in a day. And hey, if everything goes to crap in a hand bag, well, you better stock up on ammunition. I have.
                  270 million people working would be everyone between the ages of 10 and 84.

                  Comment


                    #10
                    Originally posted by kathyc2 View Post
                    270 million people working would be everyone between the ages of 10 and 84.
                    They are numbers I just threw in. I didn't research actual figures. Just making a point.

                    Comment


                      #11
                      Originally posted by Twin Turbo Z View Post
                      I didn't research actual figures.
                      I don't think Congress did either.

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                        #12
                        If Congress would get better control of spending that would help. I spent 30 years in the Aerospace business (military and commercial) and I know the crazy mark up on products sold. One example was a .25 GE light bulb my company would sell that would have the back half shot with reflective paint. Labor and cost total was around .75. The bulb was for the wingtip lights of the MacAir (McDonald Douglas) F-15. We sold it to Military supply hubs for around $75, then in turn marked it up and sold it to the military. Multiply that by millions of different items... !!!

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                          #13
                          national debt & deficit

                          Originally posted by Kram BergGold View Post
                          Before today's passage of more giveaways by the numskulls in DC, my projection was the debt caused by the tax act would approach 3 trillion not the 1.5 maximum that was set. With these new giveaways I think 3 trillion is a lock. Is their any mandate, in either law, to force Congress to act when the debt goes through the roof?
                          believe it was Pogo that said : "we have met the enemy and he is us"

                          Comment


                            #14
                            national debt

                            Originally posted by Kram BergGold View Post
                            Before today's passage of more giveaways by the numskulls in DC, my projection was the debt caused by the tax act would approach 3 trillion not the 1.5 maximum that was set. With these new giveaways I think 3 trillion is a lock. Is their any mandate, in either law, to force Congress to act when the debt goes through the roof?
                            "we have met the enemy and he is us" ....Pogo

                            Comment


                              #15
                              Originally posted by Twin Turbo Z View Post
                              If Congress would get better control of spending that would help. I spent 30 years in the Aerospace business (military and commercial) and I know the crazy mark up on products sold. One example was a .25 GE light bulb my company would sell that would have the back half shot with reflective paint. Labor and cost total was around .75. The bulb was for the wingtip lights of the MacAir (McDonald Douglas) F-15. We sold it to Military supply hubs for around $75, then in turn marked it up and sold it to the military. Multiply that by millions of different items... !!!
                              Of course there are things like that going on. FY ended 9.30.17 had non trust funds receipts of 2090B and 2909B non trust fund spending, or spending that is 39% more than receipts.

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