Can you explain the US debt crisis

A

alvito

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Apr 22, 2011
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Hey, I have been reading about the debt crisis in US of 14 tril and wanted to know a few things.

How did this happen? (kindly give me basic examples)

wikipedia says that the debt is two fold
1. public debt (what does this mean? importers importing too much steel or something? kindly give me examples like importing too much foodstuffs ...idk...)

2. gross debt i.e. public + govt (what does the US gov borrow for? now they say the debt is 99% of gdp... so isnt that still good, meaning that the debt can be repaid in around 6 yrs time, right as gdp is still more than the debt, unlike in Zimbabwe where the debt is too high or in japan where debt-gdp ratio is around 250%)

i also heard the right now china has bought treasury bills of US? ($$$ ??)
 


Public Debt is all the obligations of the federal government to everyone outside the federal government (states, institutions, etc)
Total Public Debt is with the government included.

China owns the most securities of the US because they "loaned" us the money by buying our "securities".
 
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lol these images pretty much summed it up
every country has debt but just that US has its blown out of proportion, typically they raise the bar on debt that they can do but one side wants to allow this only if they raise taxes and the other doesn want to raise taxes but still raise the debt cap, this is the tug of war atm atleast thats what i understood =p
 
1. For the longest time the US government has been borrowing money to stay in business. I think the year I heard the other day was 1938. Either that or since the 1st or 2nd WW. I don't know exactly when.

2. For most of the time since then we have been spending more than we bring in/make. Just take that simple concept and lay it out over several years. Every year it escalates.

Just watched this presentation from Coburn on what the problems are and what we should be looking at to fix them. A lot of people don't like him, but he doesn't pull any punches.

[ame=http://www.youtube.com/watch?v=4YWGNGnycYk&feature=player_embedded]‪Dr. Coburn on Raising the Debt Ceiling: We Can't Play Games Anymore‬‏ - YouTube[/ame]
 
[ame=http://www.youtube.com/watch?v=gM6sMAVaEnM]‪The Government Doesn't Need Any More Money...‬‏ - YouTube[/ame]

[ame=http://www.youtube.com/watch?v=Cd-SLRyuRq0&]‪The Money That Is Sold Abroad Is You!‬‏ - YouTube[/ame]
 
patrick24601 said:
1. For the longest time the US government has been borrowing money to stay in business. I think the year I heard the other day was 1938. Either that or since the 1st or 2nd WW. I don't know exactly when.

2. For most of the time since then we have been spending more than we bring in/make. Just take that simple concept and lay it out over several years. Every year it escalates.

Just watched this presentation from Coburn on what the problems are and what we should be looking at to fix them. A lot of people don't like him, but he doesn't pull any punches.

‪Dr. Coburn on Raising the Debt Ceiling: We Can't Play Games Anymore‬‏ - YouTube
Click to expand...

nice video.. he does have a point on the cuts
 
[ame=http://www.youtube.com/watch?v=8y06NSBBRtY]‪Eisenhower warns us of the military industrial complex.‬‏ - YouTube[/ame]


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famewolf said:
lol these images pretty much summed it up
every country has debt but just that US has its blown out of proportion, typically they raise the bar on debt that they can do but one side wants to allow this only if they raise taxes and the other doesn want to raise taxes but still raise the debt cap, this is the tug of war atm atleast thats what i understood =p
Click to expand...


Nope Norway have zero debt :)
 
patrick24601 said:
1. For the longest time the US government has been borrowing money to stay in business. I think the year I heard the other day was 1938. Either that or since the 1st or 2nd WW. I don't know exactly when.

2. For most of the time since then we have been spending more than we bring in/make. Just take that simple concept and lay it out over several years. Every year it escalates.

Just watched this presentation from Coburn on what the problems are and what we should be looking at to fix them. A lot of people don't like him, but he doesn't pull any punches.

‪Dr. Coburn on Raising the Debt Ceiling: We Can't Play Games Anymore‬‏ - YouTube
Click to expand...

Really good video, unfortunately only 95 people have seen it so far and his other videos have low view counts too. It sucks, these are the type of things that are the cancer of our country.
 
^ Tom "I voted for the $700 billion government bailout" Coburn lecturing us on overspending.


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Moxie said:
^ Tom "I voted for the $700 billion government bailout" Coburn lecturing us on overspending.


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Click to expand...

The "bailout" is quite a different situation than the ongoing nigger rich spending the government does every year.
 
BlokBlok said:
The "bailout" is quite a different situation than the ongoing nigger rich spending the government does every year.
Click to expand...

Such as the trillions in "defense" spending that Coburn supports? Or the billions spent on the "war on drugs" and related prison sentences? Coburn says that the number one risk to kids is marijuana.

[ame=http://www.youtube.com/watch?v=VGduNXStxfg]‪The Number One Risk To Our Kids Is Not Obesity... It's Marijuana! Senator Coburn‬‏ - YouTube[/ame]
 
GREED!

If I offered you the chance to preform some kind of financial activity, that may have catastrophic consequences on your firm and even the global economy as a whole. But I offered you $30 million to do it, because we need to move dog shit assets off our balance books ASAP.

Would you do it? Lot of people would, more to the point a lot of people did.

There is no end to what people will do for money, as long as it doesn't kill them.

That amongst other things such as, war, shit leaders and bubbles.
 
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