T Nation

National Debt

http://www.azcentral.com/news/articles/2008/05/19/20080519redink0519.html

[quote]pittbulll wrote:
http://www.azcentral.com/news/articles/2008/05/19/20080519redink0519.html

[/quote]

We obviously need to address medicare and social security. Bush got crucified politically for trying to address social security - medicare is an even bigger problem.

[quote]BostonBarrister wrote:
pittbulll wrote:
http://www.azcentral.com/news/articles/2008/05/19/20080519redink0519.html

We obviously need to address medicare and social security. Bush got crucified politically for trying to address social security - medicare is an even bigger problem.[/quote]

That sums it up.

[quote]BostonBarrister wrote:
pittbulll wrote:
http://www.azcentral.com/news/articles/2008/05/19/20080519redink0519.html

We obviously need to address medicare and social security. Bush got crucified politically for trying to address social security - medicare is an even bigger problem.[/quote]

How do you stop a society that is bound and determined to commit suicide? A society that thinks it can spend more than it earns, forever; a society that thinks you can take from one group and give to another without consequence, forever; a society that embraces altruism, an unnatural death-wish morality, and expects to live forever.

History in the West runs in 500 year cycles. We are entering a new one, and I think its a new ‘Dark Age’.

I think it is the war

[quote]pittbulll wrote:
I think it is the war[/quote]

Did you read your own article?

http://www.azcentral.com/news/articles/2008/05/19/20080519redink0519.html

EXCERPT:

[i]Modern accounting standards require corporations and state governments to count all new financial obligations, even if the payments will be made years from now. The federal government doesn’t follow that rule. Instead of counting lifetime benefits of everyone in the Social Security and Medicare, the government counts the cost of benefits for the current year.

The deteriorating condition of these programs don’t show up in the government’s bottom line, but the government releases the information elsewhere - in Medicare’s annual report, for example. Since 2004, USA Today has collected the information to provide taxpayers with a financial report similar to what a corporation would give shareholders.

Big new liabilities taken on in 2007:

�?� Medicare: $1.2 trillion.

�?� Social Security: $900 billion.

�?� Civil-servant retirement: $106 billion.

�?� Veterans benefits: $34 billion.

The multitrillion-dollar loss is a more meaningful financial number than the official deficit, says Tom Allen, chairman of the Federal Accounting Standards Advisory Board, which helps set federal accounting rules.

After last year’s decline, Medicare has an unfunded liability of $30.4 trillion.

That means - in addition to all future Medicare taxes paid by workers and companies - the government needs $30.4 trillion set aside in an interest-earning account, to pay the medical benefits promised to existing taxpayers and beneficiaries. The amount is certain to rise when the oldest of 79 million baby boomers, who are 62 this year, reach 65 and become eligible for Medicare coverage.

Economist Dean Baker says the huge liabilities are potentially misleading because future generations will have greater income. “If we fix health care, then our deficits can be easily dealt with,” he says.[/i]

[quote]pittbulll wrote:
I think it is the war[/quote]

The war is a drop in the bucket and is temporary. Social Security, Medicare, etc are here to stay.

Agree with the SS/Medicare fiascos.

My big concern is that all this debt was taken on when America was on top. Its easy to pay the bills when your income is rising. What happens when the country with aging plant and aging population meets the young and hungry countries like China, India, Korea, all of SE Asia,…?

In a sense, Islam helps us, just like Communism used to. Capitalists brought communism into Russia and China to prevent them from developing economically and competing. Islam keeps the ME embroiled in the past. If they throw off the shackles of that religion, like the Russians and Chinese threw off Communism (economically anyway), even more hungry competitors come into play.

Our standard of living will rise absolutely, that’s pretty certain. But it will decline relatively. That’s bad news for all those counting on a gov’t check.

Meanwhile, the dollar continues to tank…

http://www.marketwatch.com/news/story/dollar-weakens-further-after-headline/story.aspx?guid={EB447C4E-85F8-4F56-A42B-CD781BB94E9E}&dist=msr_1

If every house hold had personal debt of $500,000 dollars, I would say 75% to 90% of the house holds would have to file Bankruptcy.

Natinal debt is 9 trillion and we have spent ia a few years almost a trilliion on the war that is at least close to 10%

Don’t worry, us foreign nationals are snapping up ownership of the top american companies.

Thanks for subsidizing my retirement with your wanton consumerism and overseas military escapades.

[quote]Aleksandr wrote:
Don’t worry, us foreign nationals are snapping up ownership of the top american companies.

Thanks for subsidizing my retirement with your wanton consumerism and overseas military escapades.[/quote]

Word!

[quote]Aleksandr wrote:
Don’t worry, us foreign nationals are snapping up ownership of the top american companies.

Thanks for subsidizing my retirement with your wanton consumerism and overseas military escapades.[/quote]

We’re happy to let you all overpay for assets - just like the Japanese did when they bought up Rockefeller Center, or the German Banks did with the subprime CDAs…

[quote]pittbulll wrote:
Natinal debt is 9 trillion and we have spent ia a few years almost a trilliion on the war that is at least close to 10%[/quote]

Again, Medicare and Social Security:

http://www.usatoday.com/news/washington/2008-05-18-Redink_N.htm?loc=interstitialskip

Of course, that $500K number includes some state and local government chicanery and pension fiascoes as well:

[quote]Aleksandr wrote:
Don’t worry, us foreign nationals are snapping up ownership of the top american companies.

Thanks for subsidizing my retirement with your wanton consumerism and overseas military escapades.[/quote]

This shows rather evil thought processes. You assume that someone should TELL people how to consume, as if anyone was in charge or should be. Then, the world had literally fallen apart after WWII. We had to hold it together, which we did quite well, until the Arabs and environmentalists decided to destroy us all.

You are assuming that order is natural. It is not. The world is Darfur. The USA provided such international order until quite recently. We created the UN to perhaps all keep order together; but the UN turned out to be a bunch of evil tinpot dictators just out to milk this country.

Order WILL be re-established. I don’t think you will like it. For a preview, read posts by Nominal Prospect.

[quote]BostonBarrister wrote:
Aleksandr wrote:
Don’t worry, us foreign nationals are snapping up ownership of the top american companies.

Thanks for subsidizing my retirement with your wanton consumerism and overseas military escapades.

We’re happy to let you all overpay for assets - just like the Japanese did when they bought up Rockefeller Center, or the German Banks did with the subprime CDAs…[/quote]

Precisely. I remember way back in the early 90’s when it was the end of the world all over again.

This is the natural order of things when countries like China dump their products overseas and do not allow imports. They have to spend the money somewhere and they end up paying too much for property. Sure the dollar is devalued but the Chinese are now selling DVD players for 40 instead of 10000. It all balances out in the end and the country that does not allow imports is the one that ends up getting screwed.

http://news.bbc.co.uk/2/hi/americas/7416253.stm

[quote]lixy wrote:
http://news.bbc.co.uk/2/hi/americas/7416253.stm[/quote]

Um, so what? That has nothing to do with the fraction of the debt composed of Iraq spending.

[quote]BostonBarrister wrote:
lixy wrote:
http://news.bbc.co.uk/2/hi/americas/7416253.stm

Um, so what? [/quote]

That’s the spirit!