So- what's the big deal? Now Tsing or one of you numbers guys can correct the math, but I saw the other day that our total debt in 2013 is estimated to be between 103% and 105% of our projected annual GDP for that year. If we think of our nation as a whole, this is probably a much smaller deficit than the average American faces in their lifetime. In other words, the average American, I believe makes about 30-40K per year, while the average debt per person is around 48 thousand. When you look at it this way, does it seem like such an insurmountable task, to get this paid off?
The nature of the debt is very important. For example, owing all of it to a single, powerful foreign entity is a much different scenario from owing it to millions of small entities foreign and domestic. Additionally, having to pay it all at once, principal and interest, in the short-term, is quite a different proposition from having to merely keep making interest payments over a long-term.
Let's own up to the truth- republicans like to spend too. The difference is on how the money is spent. Whether or not the 6 trillion or so that's been spent on nuclear arms, being justifiable is up for debate. Much of that was spent during the 80's when your favorite President Reagan was at the helm. Much of that technology and those weapons are useless today. Were I a Republican and in control of some money I'd spend it on something I liked, and that without limit.[/QUOTE] I'd love to hear what it would be.
So who all do we owe? What are their terms? Something tells me the Chinese will wait a bit. They depend on our economy to be strong, so there's can be strong too, correct?
Yes, the Republicans and the Democrats love to spend money. That's why it's so completely absurd to even debate the "left vs right" grandstanding. Of course, once the Tea Party was hijacked and then demonized, the whole fiscal debate became a three-ring circus...and it's not going to be solved anytime soon. Let's be realistic. Raising taxes, closes tax deduction loopholes won't put a dent in our deficit. Cutting spending to the bone probably won't do it either. And neither are realistic with all of the lobbyists sitting around the table dictating which side gets what. As far as debt to GDP goes...well, we're now in the "WTF" stage of QE and its impact on generating any growth is pretty anemic. Rock bottom teaser rates to try and create an echo bubble in RE isn't going to revive this economy. Odds are good that the shit is going to hit the fan and GDP will not be whatever they project it to be...more layoffs, more entitlements, greater Debt to GDP, etc, etc...we haven't reversed that trend and we may never reverse it.
Our gross debt to GDP is 105% right now. The current total national debt per family is almost $704,000 or almost $187,000 per citizen. The average family has $4,638 in savings. Not to even mention that the average citizen has over $50,000 in personal debt. If you weren't so busy trying to wish away reality, you might have time to look it up first.
It is easy to find out, simply search for "composition of us public debt", along that line. Even our debt to "the Chinese" is not debt to a single entity. The Chinese government, Chinese business, Chinese citizens, any of these may hold US debt. To call in all "Chinese" debt would require their coordination of those, and of course treasuries, for example, have many maturity dates anyway, so they'd have to pound sand on that. Edit: and, let's not overlook that we also hold Chinese debt. We have the same obstacles, but in theory it to some extent offsets their holdings.
Current interest payment is $3.9 Trillion and climbing. That's $12,448 per US citizen. But as who farted said, "what's the big deal"