US National debt I'm interested to know what you guys think about current US National debt as a percentage of GDP. Is it a problem? Does it need to be reduced? How should it be reduced? What impact will the current level have on the economy in the years to come? Or is it not a concern?
For American's it's a problem. For bankers and government it's a blessing. By abolishing Federal Reserve Bank. The government would print ot's own money, rather than borrowing from FRB. JFK tried to to do that (makes me wonder if this is the reason he got wacked ) It will destroy us, but the bankers will get even richer, since all debt is backed by collateral (gold , National parks, etc). Those of us who stockpiled beans, gold, and gasoline will be less affected It won
In 2001 Alan Greenspan said: "I have long argued that paying down the national debt is beneficial for the economy: It keeps interest rates lower than they otherwise would be and frees savings to finance increases in the capital stock, thereby boosting productivity and real incomes."
I think the best thing that could ever happen to this country from a financial standpoint is if Warren Buffett atleast ran for president. He doesnt need to win, I just want him to get his economic ideas into mainstream politics for other candidates to bring into the office.
Thats a good point. It would benefit politics in general if people other than actual politicians were actively putting forwards viewpoints.
What else would you expect the Chairman of the company that we owe the money to to say. Check what young Greenspan had to say about it before he became affiliated with FRB.
The guy who is responsible for the national debt, spends a lot of his time on 'The Google' so how can anything else be of concern
Considering the British national debt is worse than America's, I really think the Brits here should be concerned more about themselves, than America.
You are wrong and you are out of your depth. If you can only respond with something based on the nationality of the original poster then why dont you just not respond.
The FRB is not a company, its a central bank which is a bank responsible for the monetary policy of the USA. The money is owed to whoever buys US Bonds.
I'm out of my depth and your offended that I'm posting something about your nation? wow, more hypocracy from the left! who'da thunk it possible. Why not just answer the accusation and show me how I'm out of my depth then instead of whining and hoping I'll shut up? you tend to ignore so many facts and points leveled against your thinking and dodge the questions and answers.. all in order to protect your flawed ways of thinking... try actually taking part and growing with us, instead of remaining stagnate in your antiquated processes of thought.
I'm annoyed that you have nothing to contribute to the thread other than silly childish bickering. Yes I am British and I have started a thread about US national debt, if you want to talk about UK national debt (not that you have any contribution to make) the please start another thread. It seems you are unable to cope with my nationality? Move on, get over it. You have not made any accusations. I'm happy for you to think that UK national debt is 'worse' than the US debt. Its clear that you dont actually know anything about economics. you don't know who I am so please dont start with all of this 'you tend to blah blah' Read the original post and dont respond if you dont have anything relevent to say, you chump.
I don't understand. You portend that it is dire that America's debt is so important that you must post a thread about it. but when I inform you that the British debt is actually far far worse.. you act like its no big deal and not worthy of your time. can you justify this flawed thinking by you? I did, about two hours ago. perhaps your obvious bias is showing again in your blindness to anything opposing your anti-America agenda? I've actually already proven you wrong..so the proof now lies with you to show your evidence. For someone who seems ultimately concerned that Bush is taking away our freedoms and freedom of speech.. you seem to be VERY hypocrytical.
If theres anybody here with a grasp of economics then please contribute! These pesky posters are annoying!
FRB is a privately-owned corporation, just like any other. It was established by a group of bankers led by Paul Warburg back in 1913. Warburgs, Rotschilds and a few others own 100% of shares. The company prints US dollars and loans them to US government. If you look at dollar, you'll see that it says ' Federal Reserve Note'. They charge taxpayers 6% a year We could avoid paying 6% if we abolished FRB and the government printed it's own money. That's what JFK wanted to do
The independance of the US central bank is a whole different topic. The debt would still exist if the central bank role was performed by government. Having an independant central bank is generally seen as beneficial because it prevents politicians from manipulating thinsg too much.
No, there would be no private creditor. It costs FRB $0.03 to print $20 bill, and they charge the taxpayer $1.20 a year for it, I think it's one of the most profitable businesses around. If we absolutely have to have a private company print $$ for us, why not at least choose one that would give us the best price? I am sure we'd do 1000% better if these companies had to compete based on price. If you look at your voided income tax check, you'll probably see that it was cashed by FRB rather than by a government agency. That's where our tax money goes - Americans even didn't have income tax until we started borrowing money from FRB. Government was able to get enough money from other sources. Doesn't it say something about how much better off we would be if government printed $$ on it's own?
If you want to know about the current situation with US national debt and how higher taxation will be needed to prevent the debt from becoming a very large burden on the US economy, then I reccomend this IMF paper from 2004. In 2004 the debt level was considerably lower than it is now. Some nippets: The U.S. general government deficit is now among the highest in the industrialized world, and public debt levels are approaching those in other major industrial countries (Figure 1.1). And another: Although fiscal (tax) policies have undoubtedly provided valuable support to the recovery so far, the return to large deficits raises two interrelated concerns. First, with budget projections showing large federal fiscal deficits over the next decade, the recent emphasis on cutting taxes, boosting defense and security outlays, and spurring an economic recovery may come at the eventual cost of upward pressure on interest rates, a crowding out of private investment, and an erosion of longer-term U.S. productivity growth. And another: With the approaching retirement of the baby boom generation, reestablishing a balanced U.S. federal deficit is becoming increasingly urgent. If you read the section headed 'The Policy Challenge' you will see that a restrain in government spending along with an increase in the general tax rate (approx 2%) is needed to manage the debt. Please note I am not posting things about the US national debt level because I am anti-american. I am posting it becasue it is a genune issue, especially with elections coming up.
the Brits should pay attn to their own judging by this thread: forums.digitalpoint.com/showpost.php?p=1664873&postcount=12