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U.S. : Fiscal Discipline Is Not Passé

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The Congressional Budget Office recently released its revised Budget and Economic Outlook. Its economists estimate that, on present policy, annual deficits of a trillion dollars — between 4 percent and 5 percent of gross domestic product — will persist over the next decade. They expect this to push government debt from 78 percent of GDP to 93 percent by 2029. Remember that the U.S. is at or close to full employment. Note as well that the CBO’s numbers assume that automatic corrective measures built into current legislation will be allowed to take effect. On the alternative and up-to-now reliable assumption that they’ll be blocked, the debt would rise to 105 percent after 10 years, according to Bloomberg. Beyond the end of the decade, even on the more favorable projection, debt would keep on going up — passing 150 percent of GDP by 2049.

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While govt. debt is not as simplistic as personal or business debt, the same basics apply. There is a clear definitiont: the ability to pay the debt being foremost, the quality of that debt.

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Dialing back profligacy is always crushing austerity.
 

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problem for new generation ... I'm sorry kids, the world is not perfect.👎

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U.S. credit card debt hit $870 billion -- the largest amount ever -- as of December 2018, according to Fed data...

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6 minutes ago, damirUSBiH said:

U.S. credit card debt hit $870 billion -- the largest amount ever -- as of December 2018, according to Fed data...

The biggest contributor to this debt was paying for everyday expenses like food, utilities, gas and medical bills. 

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Ppl are literally surviving on credit. Corps are leveraged to the hilt. Sovereign debt is sky high.

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How about getting some real facts/data in this discussion?

2018 American Household Credit Card Debt Study  

Credit card debt statistics

It looks like levels of credit card debt haven't changed much in the last 10 years.  People may be using their cards for day to day expenses but those paying down that debt every month remains relatively the same over the last 10 years as well.  The Sky Is Falling!

 

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7 hours ago, pinto said:

Dialing back profligacy is always crushing austerity.
 

It needs to be done soon and slowly. That way it will not be noticed as much. 

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1 hour ago, Dan Warnick said:

How about getting some real facts/data in this discussion?

2018 American Household Credit Card Debt Study  

Credit card debt statistics

It looks like levels of credit card debt haven't changed much in the last 10 years.  People may be using their cards for day to day expenses but those paying down that debt every month remains relatively the same over the last 10 years as well.  The Sky Is Falling!

 

Fortunately, my wife keeps things in check. We have wish lists that we keep talking ourselves out of in favor of helping our progeny. 

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(edited)

On 3/6/2019 at 7:08 AM, rainman said:

The Congressional Budget Office recently released its revised Budget and Economic Outlook. Its economists estimate that, on present policy, annual deficits of a trillion dollars — between 4 percent and 5 percent of gross domestic product — will persist over the next decade. They expect this to push government debt from 78 percent of GDP to 93 percent by 2029. Remember that the U.S. is at or close to full employment. Note as well that the CBO’s numbers assume that automatic corrective measures built into current legislation will be allowed to take effect. On the alternative and up-to-now reliable assumption that they’ll be blocked, the debt would rise to 105 percent after 10 years, according to Bloomberg. Beyond the end of the decade, even on the more favorable projection, debt would keep on going up — passing 150 percent of GDP by 2049.

There's  other factors  -  See hidden debt - Definition delinquent for this is NO PAYMENTS 

Also  add the UNIVERSAL Income   stuff .  I made a spreadsheet and the results were scary.   Triple  the yearly deficit claim $1T  - so we can have inflation due to Money Supply increases.      ~ 2.4 trillion / yr is not chicken feed.  

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Edited by mad-trader
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Cut taxes and increase spending. What could go wrong.

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