Paying the National Debt

[sandy whitelinger]

Part of the debate on raising the debt limit revolves around being able to pay our treasury notes. Since the Federal Government owns about 40% of the debt then how is not paying themselves going to ruin our credit?

[Revoltingest]

Much of the fed's debt is to the social security "trust fund".
If they stiff the seniors, all political hell would break loose.
So they'd likely default on other obligations instead.

[Engyo]

Originally Posted by sandy whitelinger

Part of the debate on raising the debt limit revolves around being able to pay our treasury notes. Since the Federal Government owns about 40% of the debt then how is not paying themselves going to ruin our credit?

It's the other 60% that causes problems in the financial markets. I don't believe that many folks who advocate default understand how shaky an edifice modern society truly is, and how quickly it could collapse. I only hope their education isn't especialy painful for the rest of us.

[Archer]

My question is the government following the stupidity of the people or was it the other way around? Hell if I cant afford it I usually do without; or make payments.

A lot of people have just walked away from their mortgages because stupidly entered into an ARM. Yes I said it people who got those loans were stupid and/or greedy. Our nation has written checks it cant cash.

SS and federal retirement need a rework. SS was not meant to be the only source of income and the fact is many children need to step up and SS needs to go away. Medicare should be for all and could be.

The American people and their leaders are mostly IDIOTS.

Pay the debt at all cost. A few years of tough times could bring the US back. Oh but we need to stop buying cheap Chinese made garbage and start paying for the US to make quality goods again. There again most workers I have seen are trash as well and only want a check.

[ChristineES]

I was always taught that you should pay your debts. I think our government is clueless.

[Terrywoodenpic]

Originally Posted by ChristineES

I was always taught that you should pay your debts. I think our government is clueless.

So what do you do when the Government has not a snowball chance in hell of paying off its debt in even a couple of generations, and that is if it totally stops spending now.
Probably only a few countries such as Switzerland and China have no national debt.

Every one else justs passes their debts around and call it international finance.

Its little brother was what the banks do ... that led to the crash.

If nations default... you have seen nothing yet....

[Mathematician]

Originally Posted by Archer

My question is the government following the stupidity of the people or was it the other way around? Hell if I cant afford it I usually do without; or make payments.

A lot of people have just walked away from their mortgages because stupidly entered into an ARM. Yes I said it people who got those loans were stupid and/or greedy. Our nation has written checks it cant cash.

SS and federal retirement need a rework. SS was not meant to be the only source of income and the fact is many children need to step up and SS needs to go away. Medicare should be for all and could be.

The American people and their leaders are mostly IDIOTS.

Pay the debt at all cost. A few years of tough times could bring the US back. Oh but we need to stop buying cheap Chinese made garbage and start paying for the US to make quality goods again. There again most workers I have seen are trash as well and only want a check.

Paying the debt off is simply not feasible. Even if you reduced the entire government down to simply the legislative body, the excess revenue would not be enough to meet obligations. Not to mention the soci-economic complications which would arise from closing down all agencies of the federal government. I'm not willing to endure complete anarchy and blood in the streets when the most reasonable solution is pretty obvious:

- Raise the ceiling, but stipulate a debt-reduction plan.

Defaulting would be sheer stupidity.

Also the idea government debt shouldn't exist is pretty unreal. Households and businesses rely on debt to operate; governments should too.

[Archer]

Originally Posted by GeneCosta

Paying the debt off is simply not feasible. Even if you reduced the entire government down to simply the legislative body, the excess revenue would not be enough to meet obligations. Not to mention the soci-economic complications which would arise from closing down all agencies of the federal government. I'm not willing to endure complete anarchy and blood in the streets when the most reasonable solution is pretty obvious:

- Raise the ceiling, but stipulate a debt-reduction plan.

Defaulting would be sheer stupidity.

Also the idea government debt shouldn't exist is pretty unreal. Households and businesses rely on debt to operate; governments should too.

Debt yes but not this. Raise taxes and cut across the board. Kill the pork or the politicians. Restructuring or cutting SS and federal retirement and bringing manufacturing back would help quite a bit.

[Revoltingest]

Originally Posted by GeneCosta

Paying the debt off is simply not feasible.

I disagree. From Wikipedia....."Budgeted net interest on the public debt was approximately $240 billion in fiscal years 2007 and 2008. This
represented approximately 9.5% of government spending. Interest was the fourth largest single budgeted disbursement category, after defense...."
Call it 10% for 2011 (just to simplify things). That leaves 90% of the budget for running the country & paying back principal. It's quite doable to pay
off the debt if they really intend to.

[Archer]

Originally Posted by Revoltingest

I disagree. From Wikipedia....."Budgeted net interest on the public debt was approximately $240 billion in fiscal years 2007 and 2008. This
represented approximately 9.5% of government spending. Interest was the fourth largest single budgeted disbursement category, after defense...."
Call it 10% for 2011 (just to simplify things). That leaves 90% of the budget for running the country & paying back principal. It's quite doable to pay
off the debt if they really intend to.

As long as we stop borrowing. I love my children and don't want to pass this on to them like part of it was passed to me.