5/5/2023 0 Comments Us debt clockHe’s got absolutely the best credit rating in the world.Ĭlick for an explanation of the Green Line, balanced budgets, tax cuts and a bit of Keynesian stimulation. Everyone in the world is willing to loan Uncle Sam money at almost zero interest. If you have bad credit, people will only loan you money at a high interest rate. And no, the high debt is not harming our credit. Stop with the doom and gloom. If, as conservatives fear, the Chinese tried to bankrupt us by cashing in all their treasury bonds, we could simply print the money and pay them. And the rest is owed by the US government’s “General Fund” to other Government Trust Funds, like the Social Security Trust Fund and the military’s pension fund. Another 40% is owed to Americans, for example, pension plans own quite a bit of it. So there is zero chance of default.Īnd only about 1/4 of the national debt is owed to foreigners. And the US has a slight advantage over most families. It would take all they made for two years to pay off their debt. But that family would be off the top of the graph at 200%. That sounds outlandishly huge, but consider a family making $100,000 a year that buys a $250,000 house with 20% down and takes a $200,000 mortgage. And 50% means the debt would be paid off in six months of using the full output. So if we used the full value of what the US produces for one year just to pay off that debt, that would just do it. It means the national debt equals one year of Gross Domestic (National) Product (GDP). The national debt in perspectiveĬonsider what it means when the graph says 100%. But here are two of the brightest contenders in the 2016 Republican primaries repeating the same old Voodoo. When it comes to the debt, the GOP is the party of zombies. Trust me again for 14 seconds and listen to Fiorina and Rubio:Īs Carly says, this may seem crazy to you. Fool me twice shame on me. Should we go for three times? You would think that after 20 years of Voodoo experiments turning out just like any sane person would expect, that at least the best and brightest Republicans would catch on. Once again it grew even faster than the economy and that’s why you see the graph going up in his first budget year.įool me once, shame on you. And the Debt, which had been going down, suddenly shot up. He cut taxes, believed tax revenues would increase, but surprise - tax revenues went down. The same thing happened to him as to Ronald Reagan. But he remained under the spell of voodoo economics. … the largest debt reduction ever achieved by any nation at any time.” Instead, the national debt went up by $2 trillion. One month after taking office in 2001 with a plan to cut taxes, he said he would “retire nearly $1 trillion in debt over the next four years. Privacy or leave or leave or leave or leave blankē600 MXđ0Ě., that’s George Bush II. However, once your appointment is made, we will honor the published fee for no less than 30 days.Ĭopyright © 2018 The Law Office of Michael J. Unless a specific date is otherwise given, all legal fees and/or special offers listed on this website are subject to change or being withdrawn at any time without notice. It is only intended as general educational information and does not necessarily represent the planning that should be implemented in your particular situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship. Our attorneys are licensed in the State of Florida, however, this website is not intended for use in Florida. No portion of this material should be construed as legal, accounting or financial advice. This website is intended for use in the State of South Carolina exclusively.
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