10 myths about govt debt - Professor Anthony Davies

[Celticguy]

The current debt is approx $30 trillion. Interest on that debt annually is about $0.45 trillion.
The largest budget items are Medicare/Medicaid (an unconstitutional program) at $1.26 trillion annually, and
Social Security (an unconstitutional program) at $1.099 trillion.

The military is only $0.719 trillion by comparison.

All taxes combined brought in $4.05 trillion.

The debt is now currently 126.64% of the GDP.

Source: US Treasury, US Federal Reserve, US Congressional Budget Office

the 800 lb gorilla in your room are unfunded obligations running somewhere between 120 and 200 trillion.

given that there are like 5 sources of borrowing and that 4 of them are either drawing back what they have traditionally done or in the case of the entitlements starting taking money back out as their reserves are no more leaving only the Fed. and borrowing from the fed causes inflation.

now you can cut that 10% anywhere you like so long as the total dollars spent is no more than 90% of present.

but as borrowing sources dry up and entitlements shift from lenders to accounts payable the ability to service the debt becomes impossible.

 

[LV426]

the 800 lb gorilla in your room are unfunded obligations running somewhere between 120 and 200 trillion.

There is no such thing as an unfunded liability, and that's $120-$200T over how many years? 200? Get real.

 

[LV426]

but as borrowing sources dry up and entitlements shift from lenders to accounts payable the ability to service the debt becomes impossible.

Borrowing sources will never dry up.

You don't know what the fuck you're saying.

starting taking money back out as their reserves are no more leaving only the Fed. and borrowing from the fed causes inflation.

No it doesn't you fucking idiot.

 

[LV426]

but as borrowing sources dry up and entitlements shift from lenders to accounts payable the ability to service the debt becomes impossible.

Not at all.

You have no fucking idea what you're saying.

You're just making it up as you go because you have brain fog caused by long haul COVID thanks to you getting infected because you don't wash your hands and you're a mouth-breather.

 

[LV426]

A loss of confidence in the dollar.

By whom?

 

[LV426]

Unconstitutional. Paid for by medicare and income taxes.

Medicare is unconstitutional?

 

[LV426]

Unconstitutional. Paid for by SS and income taxes.

Social Security is unconstititional?

 

[LV426]

Not paid for by the debt. It is paid for by gas taxes and DOT fees..

Yes, paid for by the debt. That's part of the $30T debt...the infrastructure we built.

 

[LV426]

You are making shit up. The current debt is approx. $30 trillion. You don't get to confiscate everything they own.

$30T, more than half of which are tax cuts for which we have nothing to show.

They don't. It is wealth, not money.

Same thing.

Nah. I don't have people like my boot and I don't lick anyone else's boot.

You're licking the boot of the wealthy here by repeating their lies like a sucker because you're afraid of conflict.

t. I don't give a damn about their parties.

Could've fooled me; you lived vicariously through Trump for four years, so of course you want them to include you.

You're paying taxes so they don't have to and you're like "thank you".

Many of the rich ARE scum.

Which is why you want to go to their parties, and why you are kissing their ass.

So are you, even though you are not rich.

Clever retort. But if you're going to use the "I'm rubber you're glue defense", at least try not to sound like such an impotent gasbag when you do.

 

[Into the Night]

the 800 lb gorilla in your room are unfunded obligations running somewhere between 120 and 200 trillion.

given that there are like 5 sources of borrowing and that 4 of them are either drawing back what they have traditionally done or in the case of the entitlements starting taking money back out as their reserves are no more leaving only the Fed. and borrowing from the fed causes inflation.

now you can cut that 10% anywhere you like so long as the total dollars spent is no more than 90% of present.

but as borrowing sources dry up and entitlements shift from lenders to accounts payable the ability to service the debt becomes impossible.

These unfunded liabilities are currently running about $163 trillion. Revenue (taxes) is not covering for them, and that much debt can't be issued without causeing a debt crash. The only other option is to simply print the money, causing a cash crash.

It's not just the 800lb gorilla in the room, he's loose and angry.

The situation is committed now. There is no turning back. The only question is when.

The U.S. is not alone with this problem. Every nation in the world is currently using fiat money, and many are worse off than the U.S.

It's a race to the bottom. The world has never been here before.

 

[Into the Night]

There is no such thing as an unfunded liability, and that's $120-$200T over how many years? 200? Get real.

Yes there is. The figure is $163 trillion. That is not over a period. That is today's unfunded liability...right now.

 

[Into the Night]

Borrowing sources will never dry up.

They already are.

You don't know what the fuck you're saying.
No it doesn't you fucking idiot.

Denial of history. Insult fallacies.

 

[Into the Night]

By whom?

By people, both inside and outside of the States.
Already people are looking for another currency.

 

[Into the Night]

Medicare is unconstitutional?

Yes.

 

[Into the Night]

Social Security is unconstititional?

Yes.

 

[Into the Night]

Yes, paid for by the debt. That's part of the $30T debt...the infrastructure we built.

Nope. It's paid for by gas taxes and DOT fees.

 

[Into the Night]

$30T, more than half of which are tax cuts for which we have nothing to show....deleted childish chanting...

The tax cuts were not $30 trillion. There is no cost to tax cuts.

Clever retort. But if you're going to use the "I'm rubber you're glue defense", at least try not to sound like such an impotent gasbag when you do.

Fallacy fallacy. Random phrase. No apparent coherency.

 

[Celticguy]

These unfunded liabilities are currently running about $163 trillion. Revenue (taxes) is not covering for them, and that much debt can't be issued without causeing a debt crash. The only other option is to simply print the money, causing a cash crash.

It's not just the 800lb gorilla in the room, he's loose and angry.

The situation is committed now. There is no turning back. The only question is when.

The U.S. is not alone with this problem. Every nation in the world is currently using fiat money, and many are worse off than the U.S.

It's a race to the bottom. The world has never been here before.

the "Fix" is not intended to solve the unfunded but rather to get us to a balanced budget which will allow us to make "minimum payments" on the debt service.
I really dont think there is any answer to paying the debt but, as you point out everyone is in the same boat so we will likely find out what the real solution is.

one thing for sure, it wont be pretty, better to be on the side with the best military.

China seems to be taking that tack.

 

[LV426]

The tax cuts were not $30 trillion..

The Trump ones were $2T, the Bush ones were about $10T, and the Reagan ones were about $3T.

There is no cost to tax cuts.

Yes, there is...$15T and not a single fucking thing to show for it.

Fallacy fallacy. Random phrase. No apparent coherency.

Fallacy fallacy fallacy, attempting to spike the debate by calling everything a fallacy.

 

[LV426]

Nope. It's paid for by gas taxes and DOT fees.

Nope, wrong o boyo.

If infrastructure isn't a part of the debt, then please explain how it became revenue-neutral?