Putting the Debt Ceiling into Perspective

Generali

http://www.youtube.com/watch?feature=player_embedded&v=SYafj1S2xZU (SFW - <4mins long)

Enjoy!

Morgage_Confused

thanks.....quite shocking!

Generali

Morgage_Confused wrote: »

thanks.....quite shocking!

It is quite shocking.

The bit that the BBC misses out when they talk about how terrible it is that the Republicans won't raise the debt limit is that the USA is broke the way things are currently going. That's according to the Senate Budget Committee, not some crackpot bunch.

For example, the fund that provides for the sick and disabled in the US will run out of money in 2015 as more and more people claim disability despite the population getting healthier. The reason for increasing claims over the past 20 years or so is that Democrats pushed through changes to make it much easier to claim for unprovable things like a bad back to get back at Reagan for cutting spending.

If the rate of claims doesn't drop back by 2015 the fund will be insolvent so will automatically cut payments by a fifth. Yet the Democrats refuse to put so-called 'mandatory spending' on the table, President Obama just threatens the veto and it has to go away.

The GOP need to think again on tax but this isn't a one sided issue.

purch

At some stage it may dawn on the World that everyone is insolvent.

Even the countries that are technically solvent, are only that way because of what they sell to the insolvent countries, which is paid for by the money given to them by the solvent, who got it originally from the insolvent who..................

:eek:

purch

Morgage_Confused wrote: »

thanks.....quite shocking!

I find it quite funny actually.......but maybe I'm laughing through the tears.

michaels

Isn't it all just green pieces of paper though?

Productive capacity remains the same, it is just that some people who think that by having a pile of pieces of paper they will be able to claim almost all of many other peoples output for a large number of years are almost certainly mistaken...see Cyprus q.v.

StevieJ

Generali wrote: »

It is quite shocking.

The bit that the BBC misses out when they talk about how terrible it is that the Republicans won't raise the debt limit is that the USA is broke the way things are currently going. That's according to the Senate Budget Committee, not some crackpot bunch.

In the video the bank manager mentions looking for extra income, maybe the Republicans could agree to a suitable increase in taxes, just a thought

Generali

StevieJ wrote: »

In the video the bank manager mentions looking for extra income, maybe the Republicans could agree to a suitable increase in taxes, just a thought

That's pointless if entitlements aren't also dealt with.

The Democrats know that full well but want the GOP to look like the bad guys, all the while risking the solvency of the entire welfare system in the US.

Generali

michaels wrote: »

Isn't it all just green pieces of paper though?

Productive capacity remains the same, it is just that some people who think that by having a pile of pieces of paper they will be able to claim almost all of many other peoples output for a large number of years are almost certainly mistaken...see Cyprus q.v.

It is just small green pieces of paper. Unfortunately, as seen recently, solvency crises have an unfortunate habit of spilling out into the real economy.

UK GDP is 10%(???) below where it 'should' be if trend growt had continued from 2008.