*****US DEBT now = to economy*****

Discussion in 'Economics' started by S2007S, Jan 11, 2012.

  1. S2007S


    So here is some news that just gets tossed aside, guess no one really cares to take notice that the soaring debts of this nation are now equal to the entire US GDP, who gives a fuck.. who cares.... right, not a big deal, just keep printing and printing and everything will get better...the other fact is that debt will now outpace the growth of our economy and JUST TO KEEP PACE WITH THE SOARING NATIONAL DEBT the US would have to grow 6% a year, hahaha right 6%, the US is decades and decades and decades away from ever coming across a 6% growth rate ever again....even china is having some problems keeping up with their growth rate....6% is impossible to achieve at a time like this, if anything a 2% GDP is what people are cheering for in 2012!! YAY for 2%, meanwhile without the money printing and prop job the last few years they would be lucky to get 0% GDP growth.

    US News

    US Debt Is Now Equal to Economy
    USA Today | January 09, 2012 | 11:23 AM EST

    The soaring national debt has reached a symbolic tipping point: It's now as big as the entire U.S. economy.

    The amount of money the federal government owes to its creditors, combined with IOUs to government retirement and other programs, now tops $15.23 trillion.

    That's roughly equal to the value of all goods and services the U.S. economy produces in one year: $15.17 trillion as of September, the latest estimate. Private projections show the economy likely grew to about $15.3 trillion by December — a level the debt is likely to surpass this month.

    "The 100% mark means that your entire debt is as big as everything you're producing in your country," says Steve Bell of the Bipartisan Policy Center, which has proposed cutting nearly $6 trillion in red ink over 10 years. "Clearly, that can't continue."

    Long-term projections suggest the debt will continue to grow faster than the economy, which would have to expand by at least 6% a year to keep pace.

    President Obama's 2012 budget shows the debt soaring past $26 trillion a decade from now. Last summer's deficit reduction deal could reduce that to $24 trillion.

    Many economists, such as the Brookings Institution's William Gale, say a better measure of the nation's debt is how much the government owes creditors, not counting $4.7 trillion owed to future Social Security recipients and other government beneficiaries. By that measure, the debt is roughly a third less: $10.5 trillion, or nearly 70% the size of the economy.

    That is still high by historic standards. The total national debt topped the size of the economy for three years during and after World War II. It dropped to 32.5% of the economy by 1981, then began a steady climb under President Reagan, doubling over the next 12 years. The combination of recession and stimulus spending caused it to soar again under Obama.

    Among advanced economies, only Greece, Iceland, Ireland, Italy, Japan and Portugal have debts larger than their economies. Greece, Ireland, Portugal and Italy are at the root of the European debt crisis. The first three needed bailouts from European central banks; Italy's books are monitored by the International Monetary Fund.

    The White House and Congress agreed in August to cut about $1 trillion from federal agencies over 10 years. An additional $1.2 trillion in automatic spending cuts looms beginning next year if lawmakers can't agree on a better way to do it.

    Economist Mark Zandi of Moody's Analytics says reaching the 100% mark shows "the grave need to address our long-term fiscal problems."
  2. I can't wait to get the !@#$ outta here
  3. Why would anyone in the government care about debt when you can do whatever the hell you want, when you'll be dead before you pay the full consequences of your actions, and when the organization will continue to exist no matter if you are here or not?