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In The Event Of An Official US Bankruptcy

DarkNoon said:
Sometimes I wonder if the leaders of the MAGA radicals are purposely doing this crap to purposely ruin the GOP. The things they are doing clearly is self sabotage. I mean Trump use to be a DEM. Unless they really are that dumb and don't realize they are sealing their own coffins.
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democrat plants to destroy the GOP from inside?
 
Twitter fodder and diatribes rather than debate and dialogue.
Thanks for the brilliant intelligent conversation,
Not
 
teekay99 said:
True- deficits and debt are different things, though deficits cause debt. And continued deficits can create an unpayable debt, which is the directions we are heading. Both parties cause this for their own political means whether it be guns (historically R) or butter (historically D).

Debt payments have not stopped under any administration I can think of in recent memory as that would be absolutely terrible for our fiscal policy. (If we fail to pay our debt, fewer players will buy bonds in the future (i.e. lend us money)). I can't see any administration supporting this as a strategy as said administration would be significantly constrained in running a deficit within a fiscal year.

It's probably a political tactic and not a long-term strategy.
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The article below describes what is actually happening to countries that borrowed too much from China and are left in a state where interest payments on their debt exceed their ability to pay.
https://apnews.com/article/china-de...ies-collapse-8df6f9fac3e1e758d0e6d8d5dfbd3ed6

Yes, we have a larger economy and thus a larger threshold before we are in the same position. But if we do not reign in deficit spending, we will eventually be in the same boat.
 
teekay99 said:
The article below describes what is actually happening to countries that borrowed too much from China and are left in a state where interest payments on their debt exceed their ability to pay.
https://apnews.com/article/china-de...ies-collapse-8df6f9fac3e1e758d0e6d8d5dfbd3ed6

Yes, we have a larger economy and thus a larger threshold before we are in the same position. But if we do not reign in deficit spending, we will eventually be in the same boat.
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China only owns about $800bn in US debt. So less than 1/30th of your national debt. ~75% of the US national debt is domestic.

200% increase in outlays over the last 20 years but only a 125% increase in receipts. Forgive me for stating the obvious but it point towards needing to increase taxes. Whilst you could reduce spending, its hard not to imagine the reality of US government spending being for all intents and purposes essential.
 
What are folks' opinions on this agreement in principle? Are the chances of an economic Liz Truss x 1000 really much smaller now or could this deal still be easily torpedoed?
 
uamcplyr said:
www.foxnews.com

Debt ceiling agreement in principle reached between Democrats, Republicans

President Biden and House Speaker Kevin McCarthy spoke by phone for nearly 90 minutes Saturday night to discuss the debt ceiling, a source told Fox News.
www.foxnews.com www.foxnews.com

McCarthy's just gone live briefly but I missed all of it while grabbing a link 😁
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I just saw an article which said they reached a deal, but didn't say what the deal was. Other than lifting the debt ceiling and unspecified spending cuts.
 
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