As for the argument that our military will protect us in a financial crisis, yeah right. They will not attack the US if it defaults on its debts, they'll just make global sanctions. Unless we become a global dictator our means to support our military will fall with our economy and our dignity.
8.7% of all spending
1.7% of GDP
Only if The Obama lets it.With the planned deficit spending this will easily rise to half a trillion dollars in the next few years.
He has the power to never let that happen.
"Global sanctions"?As for the argument that our military will protect us in a financial crisis, yeah right. They will not attack the US if it defaults on its debts, they'll just make global sanctions.
"Become" global dictator?As for the argument that our military will protect us in a financial crisis, yeah right. They will not attack the US if it defaults on its debts, they'll just make global sanctions. Unless we become a global dictator our means to support our military will fall with our economy and our dignity.
The US has been blessed that the US dollar has served as the world's trading currency, which allows it a fairly unique opportunity to issue its debt in its own currency. However, this blessing is not infinite. Other nations have been willing to trade and invest in US dollars because it is seen as a stable currency that is likely to hold its value. If that perception is jeopardized by fiscal and monetary mismanagement that undermines the stability and value of the dollars, other nations will simply stop trading in it and accepting it for debt. Then when the US Govt wants to borrow money to pay for deficits or simply maintain its existing debt, it will have to purchase the debt in Euros or some other currency, which would be a great blow to the US.
Total interest on the debt in FY08 was a record $451B.
Interest in the 1stQ FY2009 is $135b.
Government - Interest Expense on the Debt Outstanding
Ironically, the currect economic situation helps reduce interest expense. Because the demand for a safe have in US debt is so high, interest rates payable have plummeted (near zero at the moment, I think).
I am certainly going to abandon all my dollar assets with this type of news, and I am sure global trust in the American economy is going to fail completely. Now I am not just saying collapse in the US is possible, unavoidable.
Who is going to want to invest in an economy with an annual budget deficit equal to 2/5ths of total tax revenue, every year? In addition, who would want to invest in an economy with trade deficits in addition, that equals 7/10ths of total exports. And then you have to consider the people in the US who are indebted them self, at greater rate than any other people in the world, except Brits, whom have more personal debt per capita.
A 1 trillion $ debt for one year is certainly a reason for collapse. 1 trillion $ debt before the "stimulus" package of 800 billion $ that Obama proposes is just a final nail in the coffin, and years of huge debts after that will make sure the US will hit rock bottom and probably end up in civil war..
You people have to start caring! What the heck is your government doing to your country? Are they terrorists, pretending to be politicians or what? If they are the US have already lost the war, if they are not I have no hopes at all for the US..
Lock and load people, prepare to take down your government and bring on revolution asap. Return power to the people.
If the US continues like this, I predict that the US will be a completely irrelevant country by 2025, a failed state.
Europe is illegally occupied by the US
I know.Countries with too much foreign debt that default on it lose investment trading and the capacity to borrow from other nations. Often associated with hyperinflation of currency all of which can be economically devastating. Many examples abound.
And use what? The Yuan? Yen? Euros? Not in our lifetime.other nations will simply stop trading in it and accepting it for debt.
The fact remains that your initial comment, while reasonable, ain't relevant here.