Related to F-Conn

G

G

Guest
It could be debated forever which state or which political regime has spent/wasted more money and had so little to show for it. Except debt. I have no wish to get in to heated arguments with anybody on this site about who is to blame for what. I would rather meet you out on the trails and maybe debate the merits of Sea and Snow. However I do have a question.
What happens when as a country we hit the magical debt max where all our taxes go to pay the interest on the national debt? It depends where you look but that number is somewhere around 25 trillion. Which we are closing in on. Then what?
I can't get a straight answer out of my broker. He just says 'That won't happen'.
Local banker and accountant say ' we will monetize the debt.' What does that mean?
I realize we are not Greece or Venezuela. We can print out own money. For now.
But at what point does it just go BOOM. And then what happens? Or is it going to just going to be business as usual? The day is coming.

Thoughts?
 

euphoric1

Well-known member
IMO i think things are going to go boom sooner than later, i dont think we have learned our lesson from the last time things were so good and went boom.
 

frnash

Active member
"… What happens when as a country we hit the magical debt max where all our taxes go to pay the interest on the national debt? It depends where you look but that number is somewhere around 25 trillion. Which we are closing in on. Then what?

Local banker and accountant say ' we will monetize[SUP]1[/SUP] the debt.' What does that mean? …
What happens then:
1. Raise taxes.
2. Print mo' money.

( [SUP]1[/SUP] Monetization is the process of converting or establishing something into legal tender. While it usually refers to the coining of currency or the printing of banknotes by central banks, it may also take the form of a promissory currency.)
 

old abe

Well-known member
What happens then:
1. Raise taxes.
2. Print mo' money.

( [SUP]1[/SUP] Monetization is the process of converting or establishing something into legal tender. While it usually refers to the coining of currency or the printing of banknotes by central banks, it may also take the form of a promissory currency.)

Promissory currency??? "Federal Reserve Note"??? Yes the Fed will prevent grubs worry from happening. But it won't be pretty.
 

snobuilder

Well-known member
On a happy note, Americans will top $1,000,000,000,000 in Christmas/holiday spending this season.

And what does Foxconn and debt have to do with one another?
Additional jobs= additional tax revenue....which COULD be used to pay down debt.....for example like Gov. Walker did in WI. He inherited an awful debt load from Dem. Gov. Doyle and turned it into a huge surplus during his 2 terms.
And now the effed up potheads have ruined that by electing another tax and spend liberal Dem. as Governor....SMH..
 

saber1

Active member
I thought politics where not allowed on here guess where being more liberal with the rules
 
G

G

Guest
On a happy note, Americans will top $1,000,000,000,000 in Christmas/holiday spending this season.

And what does Foxconn and debt have to do with one another?
Additional jobs= additional tax revenue....which COULD be used to pay down debt.....for example like Gov. Walker did in WI. He inherited an awful debt load from Dem. Gov. Doyle and turned it into a huge surplus during his 2 terms.
And now the effed up potheads have ruined that by electing another tax and spend liberal Dem. as Governor....SMH..

This is not the question. The question is what happens when all the GDP goes to pay the interest on the debt. Not political.
 
G

G

Guest
This is not the question. The question is what happens when all the GDP goes to pay the interest on the debt. Not political.
Not GDP. Collected taxes. What happens when the collected taxes are only enough to pay the interest on the debt. What does or doesn't happen with fconn isn't going to make any difference. We will hit the point of default regardless.
 

JWBERT

New member
We are all going to start smoking weed on a regular basis and therefore will not give a crap about the interest on the debt:adoration:
 

united

Active member
Budget was in debt for 30 years. Then Congress got its act together and balanced the budget in four years for a surplus for a couple of years as recently (or distant) as 2001. So it can be done. Then 9/11. Calling Newt Gingrich, you have some National Parks to temporarily close.
 

snobuilder

Well-known member
Not GDP. Collected taxes. What happens when the collected taxes are only enough to pay the interest on the debt. What does or doesn't happen with fconn isn't going to make any difference. We will hit the point of default regardless.

F-conn is right in your Thread title....WHY is it there ?....LOL.....I simply stated that it could be part of the debt crisis solution with the additional tax revenue those 13000 new jobs bring to the USA and then went on to site an example of how budgets actually CAN get balanced....in my example, by a R. Governor.
One thing is for certain. You can't tax and spend your way out of debt.
 

snobuilder

Well-known member
Sorry for bringing a positive solution to the doom and gloom party....guess it's time to censor the odd guy out....LOL
 
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