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Obama warns about years of trillion-dollar deficits

Goobieman said:
Its only relevant if The Obama and the Dem-controlled congress choose to run the deficits projected here.

Those deficits arent at all necessary -- they could be reduced to $0, should those mentioned above choose to do so.
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But the deficits are inevitable so why not propose trillions in new deficit spending, right?

Obama, again, was saying nothing at all with this so-called "warning."
 
JMak said:
But the deficits are inevitable so why not propose trillions in new deficit spending, right?
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In for a penny, in for a pound, I guess.

But the fact remains -- there will only be $1T deficits of The Obama and the Dem-controlled Copngress chooses to allow them.
 
Goobieman said:
Its only relevant if The Obama and the Dem-controlled congress choose to run the deficits projected here.

Those deficits arent at all necessary -- they could be reduced to $0, should those mentioned above choose to do so.
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Deficits certainly aren't necessary when the economy is running well -- which is why running up trillions in debt in 2002-2007 was such a tragerdy.

In times of economic crises, there is a valid argument for deficit spending as a means to improve the economy. The evidence of whether such actions is actually beneficial is subject to debate, I agree, but there is at least an argument for it.

I didn't have a big problem with Bush providing rebates in 2001 to try to juice the economy a bit. My prolem was that the tax cuts were made permanent, and even after the economy was running well the government continued to add 1/2 trillion to the debt annually.
 
if bush had just braced us, his approval ratings wouldn't be so low.
 
Your "concern" ain't relevant to the OP's comments.

That your concern might be accurate doesn't make it relevant.

BTW - bankruptcy does not apply to nations. WTF is China or Japan going to do if the US defaults on repayment? Demand that the US go Chapter 7 or something?

Grow up.
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This is rare, but I agree with JMak here. There is a reason that the US pours so much money into its military, and it is not just because of the influence of the military-industrial complex.

You can't collect on someone that refuses to pay if you can't force them to pay.

Of course, the economy is going to keep declining in the next few years, regardless of what Obama does. The problem runs much, much deeper than some governmental policies.
 
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Goobieman said:
Its only relevant if The Obama and the Dem-controlled congress choose to run the deficits projected here.

Those deficits arent at all necessary -- they could be reduced to $0, should those mentioned above choose to do so.
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I'll be holding my breath:3oops: for that Republican filibuster of a budget that runs a deficit.
 
Khayembii Communique said:
This is rare, but I agree with JMak here. There is a reason that the US pours so much money into its military, and it is not just because of the influence of the military-industrial complex.

You can't collect on someone that refuses to pay if you can't force them to pay.

Of course, the economy is going to keep declining in the next few years, regardless of what Obama does. The problem runs much, much deeper than some governmental policies.
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My comment was not specified towards foreign debt. It just usually surprises people to learn how much of our budget goes towards paying the interest of our debt, and not the debt itself. I believe its in the 300 billions. With the planned deficit spending this will easily rise to half a trillion dollars in the next few years.

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.
 
JMak said:
BTW - bankruptcy does not apply to nations. WTF is China or Japan going to do if the US defaults on repayment? Demand that the US go Chapter 7 or something?

Grow up.
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Close Wal Mart.
 
shiznit770 said:
My comment was not specified towards foreign debt. It just usually surprises people to learn how much of our budget goes towards paying the interest of our debt, and not the debt itself. I believe its in the 300 billions.
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FY2007:
$237.2B
8.7% of all spending
1.7% of GDP

With the planned deficit spending this will easily rise to half a trillion dollars in the next few years.
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Only if The Obama lets it.
He has the power to never let that happen.

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.
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"Global sanctions"?
Like what?
 
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.
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"Become" global dictator?
 
JMak said:
Your "concern" ain't relevant to the OP's comments.

That your concern might be accurate doesn't make it relevant.

BTW - bankruptcy does not apply to nations. WTF is China or Japan going to do if the US defaults on repayment? Demand that the US go Chapter 7 or something?

Grow up.
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I agree Nations don't go bankrupt quite like corporations; but to imply that the level of debt is therefore unimportant is false. 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.

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.
 
Goobieman said:
FY2007:
$237.2B
8.7% of all spending
1.7% of GDP
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That excludes interest on intragovernment debt, ie interest that our SS trust fund is supposedly earning. If that debt is added in the interest expense is closer to $500 billion.

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).
 
Final nail in the coffin

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. :damn
 
Iriemon said:
but to imply that the level of debt is therefore unimportant is false.
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Nobody said such a thing nor implied as such. Christ!

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.
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I know.

other nations will simply stop trading in it and accepting it for debt.
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And use what? The Yuan? Yen? Euros? Not in our lifetime.

The fact remains that your initial comment, while reasonable, ain't relevant here.
 
Re: Final nail in the coffin

Maximus Zeebra said:
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. :damn
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Good luck with that!
 
Re: Final nail in the coffin

Maximus Zeebra said:
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.
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Yes -- and this means something, because you know what you're talking about.
:roll:
 
JMak said:
Nobody said such a thing nor implied as such. Christ!
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OK -- I read your post out of context. I retract.

And use what? The Yuan? Yen? Euros? Not in our lifetime.
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The Euro would be the most likely candidate. Hopefully you are correct.
 
Re: Final nail in the coffin

Goobieman said:
Yes -- and this means something, because you know what you're talking about.
:roll:
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If you read the rest of my post and quoted that as well, you would see that I actually do.. Who will invest in a 75% deficit run economy.. Do you even know how much tax income the US federal government have? Compared with deficits of 1.2 trillion $ before the rescue package of 800 billion $ which is a seperate package, making it 2 trillion$ between them, then I am sure I am not the only one who will loose faith in the US economy. Especially considering the anual trade deficits and the private debts that the US people is suffering with..
People are talking about recession that will last until 2010. I am sure that if the US ever recovers, it will not be before 2015. Lets see who is right. Remember this post then..

What happens btw when people withdraw their US assets in great numbers as a result of faith in your economy? Thats the interesting question to someone as knowledgeable as you :)roll:) who responds to a post with "you are wrong" type of "arguments". :lol:
 
Iriemon said:
OK -- I read your post out of context. I retract.



The Euro would be the most likely candidate. Hopefully you are correct.
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I think a combination of the Euro, the Swizz franc, the Yen and the Chinese Yuan will take a lot of the US dollar marketshare over the next 5 years.
 
Re: Final nail in the coffin

Maximus Zeebra said:
If you read the rest of my post and quoted that as well, you would see that I actually do.
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Hardly.
Like with so many other of your posts, its nothing but issue-of-the-moment, anti-American sensationalism.
 
Re: Final nail in the coffin

Goobieman said:
Hardly.
Like with so many other of your posts, its nothing but issue-of-the-moment, anti-American sensationalism.
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If you look beyond your feelings and look at reality, you will see that the post is actually very pro American. Its just reality.

The amount of solutions for the US is shrinking each year, which in my opinion is a dreadful thing.

If I see my friend constantly shooting himself in the foot, I will always try to stop him..
 
Invest in wheel barrow manufacturers.

Everyone will need one to take enough money to the grocery story to buy food for an evening meal.
 
Re: Final nail in the coffin

Goobieman said:
Hardly.
Like with so many other of your posts, its nothing but issue-of-the-moment, anti-American sensationalism.
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And as I repeated in another post.. I am European, I want nothing more for America than its stability and continued success, other than that its not my concern. When things go badly, I am frustrated, sad and angry(especially when it could be prevented and its not) like I would be if things go badly in Europe, which just proves that I care about America.
Currently I am "worried" about Europe, but deeply concerned and terrified about whats happening in America.
 
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