Topic: US Debt Has Exploded - page 11. (Read 10049 times)

They can raise taxes and implement a negative interest rate.
When they do that, commodity and basic necessity product prices will skyrocket.
You can only pull the plug of the US Dollar, there is no cure for debtus-inflatus.

Any state debt can be paid by taxes from all country people, simply just making taxes higher. In this case US debt looks like quite high - so I think US government have already plan what to do.   

well actually gold is better I think although bitcoin can be considered gold, gold represents for the value of currency as well as has physical value so buying gold should be better than bitcoin I think

The debt rises much faster than the GDP. It means those debts are not sustainable. That happened in Greece and a few other countries. The debt laden economy is not the way to go.

A forever expanding money supply and forever expanding debt, never be able to payback, thus everyone have some incentive to work. Debt is similar to dream, the ultimate incentive to work

Taking a snapshot at any individual moment isn't as useful as identifying the overall trend. In the past 15 years, debt:GDP ratio has risen 147% (from under 45% to over 110%).

                             GDP                        Debt (FYE)                Ratio
Dec 31, 2014   16.15 trillion                       17.82                  110.34%
Dec 31, 2013   15.76 trillion                       16.74                  106.22%
Dec 31, 2012   15.38 trillion                       16.07                  104.48%
Dec 31, 2011   15.19 trillion                       14.79                   97.37%
Dec 31, 2010   14.94 trillion                       13.56                   90.76%
Dec 31, 2009   14.54 trillion                       11.91                   81.91%
Dec 31, 2008   14.58 trillion                       10.02                   68.72%
Dec 31, 2007   14.99 trillion                        9.01                    60.11%
Dec 31, 2006   14.72 trillion                        8.51                    57.81%
Dec 31, 2005   14.37 trillion                        7.93                    55.18%
Dec 31, 2004   13.95 trillion                        7.38                    52.90%
Dec 31, 2003   13.53 trillion                        6.79                    50.18%
Dec 31, 2002   12.96 trillion                        6.23                    48.08%
Dec 31, 2001   12.71 trillion                        5.81                    45.71%
Dec 31, 2000   12.68 trillion                        5.68                    44.79%

Is a 110% ratio problematic? That single data point alone doesn't say. But in light of the trend (we were under 45% 15 years ago) and with medicare and social security expenses about to start exploding with the retiring baby boomers, yeah, it absolutely is crucial we address this now. We haven't at all over the last 15 years, despite knowing this looming crisis was coming, and we did nothing. We don't have the luxury of not acting anymore, or hoping that we can economic-growth our way out of this. We can't.

Debt economy crash begin

http://carlicahn.com/

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http://www.thestreet.com/story/13394908/1/like-icahn-sec-sees-danger-ahead-in-these-risky-etfs.html

China sell offi nothing compare to that,hold your btc

Well, it's what the debt actually is at present. Unfunded liabilities are not current debts, they are future debts. The law mandating their payment could change, or the demographics underlying their calculation could change before they actually need to be paid, or revenue could more than make up the difference by the time they are incurred in which case they wouldn't add to the debt at all. In any case, I didn't include them in my post because they're speculative. The debt numbers posted are the Treasury's numbers of debt currently incurred, but you're right that you shouldn't ignore the looming crisis unfunded liabilities pose, which is exactly what every politician is presently doing.

It's just a side effect of printing money, relax 

The link you posted shows a drop in international reserves of more than 12% in the last year alone. Thats a pretty significant amount of money to me (More than $50 billion). Here is the same link in English for anybody that doesn't read Russian:

http://www.cbr.ru/eng/hd_base/?Prtid=mrrf_m

Yes debt  everywhere,but if to think about all that financial instruments based on debts,derivatives,thatwe even dont know how many trilionsit is.NowEBC QE is not working,no landingin Europe,anysigne of inlation

So if Euro will fail,many economist is predicting that,whatwill happen with all that euro debt derivatives
Will be massive sell of before,total crash,look on stock today,all in reds,over2%on all major indexes
only btc express is moving up.What is going on,itis not fear before Fed

http://www.cbr.ru/hd_base/default.aspx?Prtid=mrrf_m

The leftmost column is total reserves of Russian Central Bank. I don't see a rapid decrease there.
 

I'll just leave this here

https://en.wikipedia.org/wiki/File:Government_debt_gdp.jpg

Both of those countries you just mentioned also have rapidly depleting cash reserves, mostly thanks to the oil crash. They might not have as much debt but they're spending cash rapidly to prop up their economies.

The US economy no doubt will collapse very soon, it'll probably collapse instantly if China decides to sell all its US bonds on the forex markets.

This is just not true. National debt of Russia is 15% of GDP, national debt of Saudi Arabia is 8% of GDP.

The shear numbers are of course increasing. But that has more to do with currency inflation than actually borrowing more money. Every major country on the planet has some debt, just like most people in this world have some financial debt. Its life.

IMO what matters is not so much the total debt a country has, but the ratio of debt to GDP. That gives you an idea of how easily a country would actually be able to pay off its debt. In the case of the US, the ratio is estimated between 104-105% which is to say its essentially a 1:1 ratio. The GDP in the United States is about equal to its debt. That's pretty common and not really all that alarming. The ratio for the entire eurozone is about ~94% with some countries well above 100%

Is debt high in the US? Yes certainly. But is it so bad that we need to stop everything and fix it now? No its not. By comparison, Greece who almost defaulted earlier this year, is somewhere north of 180%

http://www.debtclocks.eu/