USA debt

What do you think about USA debt.
https://www.usdebtclock.org/index.html

It is so huge they cant even pay interest

So they need to borrow more money just to be able to pay interest of existing debt.
There is no chance to decrease it.
Every american family owes over 800,000 USD.

Be it a family instead of state, all their property will be force sold and all members end up in jail.
Why does not it apply to US.

I believe it is because dollar is used to trade oil. Everyone who tries to change it like Iraq or Iran is threaten by military force.
Your opinion?

I agree. You are completely right! The US debt is so huge and this country is so military oriented that I think soon or later they will use their military forces in order to find someone to pay their debt! America is a great country managed by stupid, greedy people.

Its a bit tricky to put numbers like that, because the government owns like 6 trillion to itself. Then there is about 1/4 held by other governmental entities like the Federal Reserve and state and local government, the interest of those loans goes back to the government.

At some point there will be a problem, and with credit downgrades, so comes the rate increases on Treasury bills.

I have no idea how much assets an average US family holds.

stian posted:
Its a bit tricky to put numbers like that, because the government owns like 6 trillion to itself. Then there is about 1/4 held by other governmental entities like the Federal Reserve and state and local government, the interest of those loans goes back to the government.

At some point there will be a problem, and with credit downgrades, so comes the rate increases on Treasury bills.

I have no idea how much assets an average US family holds.

it does not actually matter as you can clearly see mandatory expenses and interest compared to federal revenue

Aye, the big problem is that the debt increases more than the economy as a whole, meaning interest takes up more and more of the government budgets, resulting in higher and higher taxes or more and more loans until eventually risk defaulting.

Rand Paul had a good solution a few years back, just cut every government program by the 43% or something. Balance the budget in a year to prevent this being a problem in the future. Sadly it didn't get much government support. Give it 20 years when the cuts will happen by force due to inability to actually service debt.

Amazing how US government debt doubled in just 8-years, and now sits at 104% of GDP. Look at Europe also (Austria 84%, Belgium 106%, France 96%, Greece 179%, Italy 132%, Portugal 130%, Spain 99%, and UK 89%). Of course, Japan's government debt is 250% of GDP, giving them first prize. I don't know how we manage to sleep at night!

I saw the whole article here (https://itrader-forex.nl/forex/united-states-debt/),

the analysts state that there are 3 major causes of the US deep debt:

1. debt that is gathered Federal budget deficits
2. every President borrows from the Social Security funds
3. when countries like China and Japan buy treasuries to maintain the low value of their currency

stian posted:
Aye, the big problem is that the debt increases more than the economy as a whole, meaning interest takes up more and more of the government budgets, resulting in higher and higher taxes or more and more loans until eventually risk defaulting.

Rand Paul had a good solution a few years back, just cut every government program by the 43% or something. Balance the budget in a year to prevent this being a problem in the future. Sadly it didn't get much government support. Give it 20 years when the cuts will happen by force due to inability to actually service debt.

you cant cut pensions...

togr posted:

stian posted:
Aye, the big problem is that the debt increases more than the economy as a whole, meaning interest takes up more and more of the government budgets, resulting in higher and higher taxes or more and more loans until eventually risk defaulting.

Rand Paul had a good solution a few years back, just cut every government program by the 43% or something. Balance the budget in a year to prevent this being a problem in the future. Sadly it didn't get much government support. Give it 20 years when the cuts will happen by force due to inability to actually service debt.

you cant cut pensions...

Tell that to Greece. Government promised pensions are like any other government expense at the hand of the politicians. You can cut pensions, just as you can do cut in social security or the military.