Chief Bones
Forums Grumpy Old Man
Economics 101
Since King George ascended the Presidency, our National Debt has spiraled out of sight. Estimates state that the debt will be in the neighborhood of 7-8 trillion dollars or higher by the time we get a new president and because of decisions made by the Bush administration, those 'in-the-red' dollars will continue to grow.
You don't stop a freight train by putting down your foot and dragging it.
The rest of the posts are interesting - but - I think there is one consequence that was overlooked:
If the National Debt gets too high, one of the ramifications could very well be that other world governments, corporations and individuals who float loans to the United States via bonds and securities are liable to stop backing the American Dollar because of the monstrous debt. What the consequence of that would be I won't even hazard a guess - the implications are staggering. (Has there ever been a country which has gone bankrupt?)
Let's face it, if you or I were to run our debts through the ceiling - we would be in debtors court filing bankruptcy papers.
I realize that the above is simplistic in it's nature and that there are many more problems that arise because of our out of control budget deficits.
HISTORY REVIEW - when Bush and the Republicans came to power, we had a surplus and were slowly paying down the National debt.ASTRALdragon said:Forgive me for not staying awake in my economics class, but what happens if the federal deficit is too high? Inflation? US dollar is kicked off world markets? Please explain. Thanx in advance!
Since King George ascended the Presidency, our National Debt has spiraled out of sight. Estimates state that the debt will be in the neighborhood of 7-8 trillion dollars or higher by the time we get a new president and because of decisions made by the Bush administration, those 'in-the-red' dollars will continue to grow.
You don't stop a freight train by putting down your foot and dragging it.
The rest of the posts are interesting - but - I think there is one consequence that was overlooked:
If the National Debt gets too high, one of the ramifications could very well be that other world governments, corporations and individuals who float loans to the United States via bonds and securities are liable to stop backing the American Dollar because of the monstrous debt. What the consequence of that would be I won't even hazard a guess - the implications are staggering. (Has there ever been a country which has gone bankrupt?)
Let's face it, if you or I were to run our debts through the ceiling - we would be in debtors court filing bankruptcy papers.
I realize that the above is simplistic in it's nature and that there are many more problems that arise because of our out of control budget deficits.
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