Who Holds US Debt

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Flesh Thorn
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Who Holds US Debt

Post by Flesh Thorn »

The national debt topped $16 trillion on Tuesday, adding fuel to Republican's criticisms of President Obama's deficit spending just as the Democrats are kicking off their national convention.

Mitt Romney lamented "the enormous debt" being handed the nation's children, while House Speaker John Boehner called it a "sad reminder of President Obama's broken promise to cut the deficit in half."

But if you thought China's been doing most of the bankrolling, you might be surprised to learn who really holds our federal mortgage.


Read more: http://www.foxnews.com/politics/2012/09 ... z25Y5BYHHg
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rgrokelley
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Re: Who Holds US Debt

Post by rgrokelley »

There is no happy way out of this. If Obama gets reelected we keep printing and spending money, and we go into hyper-inflation, and the economy collapses.

If Romney gets elected he gets the Fed to actually control the economy again, but that means raising interest rates. Some predict this may be as high as 20 to 30 percent. If that happens people will not be able to afford loans to start businesses.

Its a shit filled twinkie and no matter what, we have to eat it.
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Jim
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Re: Who Holds US Debt

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rgrokelley wrote:There is no happy way out of this. If Obama gets reelected we keep printing and spending money, and we go into hyper-inflation, and the economy collapses.

If Romney gets elected he gets the Fed to actually control the economy again, but that means raising interest rates. Some predict this may be as high as 20 to 30 percent. If that happens people will not be able to afford loans to start businesses.

Its a shit filled twinkie and no matter what, we have to eat it.
Another understatement!
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RangerX
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Re: Who Holds US Debt

Post by RangerX »

Deficit spending (both government & personal) is the greatest threat to our society we have faced in 50 years. Before the 60s, people paid cash for everything, including houses, cars & other big ticket items. As soon as we started borrowing as a standard, everything went up creating a false prosperity. This is not a sustainable model, and the chickens are in the process of roosting. If we do not suck it up now, our children will pay the price. At the latest, our grandchildren.

Me personally, I'd rather shoulder the burden than 'pass the buck'. My parents just might not understand why I don't have any time for their financial 'guidance'.
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Lefty
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Re: Who Holds US Debt

Post by Lefty »

A couple more tidbits for comparison -

US debt is now greater than Gross Domestic Product (GDP) - it was at 101.5% of GDP at YE 2011 per the US Treasury.

There are only three other countries that are above their GDP:
1. Japan 204%
2. Greece 165%
3. Italy 118%

Only one other time in US history was debt more than GDP - WWII 117.5%

The lowest point was 1977-1981 32.5%

Also ponder this -

The average interest rate on US debt (T-bills, T-Notes, T-Bonds, etc.) in January 2012 was 2.24%, or app. $240 billion/year.
The historic average rate as recently as 2007 has been 5%, or $500 billion/year.
$5 trillion in notes are due in the next 36 months - if rates return to historic averages, the annual interest payments may reach $1 trillion/year.

This does not factor in the "fiscal cliff" coming in January 2013 - the built-in increase in taxes & withholding plus the mandated cuts of $1.2 trillion.
It is estimated this will eliminate 2.1 million jobs, including federal employees, manufacturing employees, and construction employees.
Unemployment will return to levels above 9%, the economy will contract by 1.3%, and we will enter another recession.

Tighten your seatbelts, this will be a bumpy ride.
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Re: Who Holds US Debt

Post by Jim »

Jesus, Karl, the good news just keeps on coming.
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