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US debt hits record $19 trillion Watch

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    The United States federal debt has surpassed $19 trillion for the first time in history according to the Treasury Department. However, the real figure could exceed $65 trillion, according to a former US Comptroller General.

    The official debt of $19 trillion represents almost $60,000 for every man, woman and child living in America today.

    President Barack Obama took office with $10.8 trillion debt that has grown more than $8 trillion in seven years. And such a record tempo is likely to continue, according to the Congressional Budget Office, quoted by the Washington Times.

    This equals an additional $70,000 in net federal borrowing for each of the 117,480,000 American households, according to Census Bureau estimates.

    About $13.7 trillion makes up public debt, and the rest comes from government borrowing.

    The US currently functions without a debt ceiling. Legislation in November suspended it through March 2017 so borrowing can continue without a limit until that time.

    According to former Comptroller General of the United States [the director of the Government Accountability Office] David Walker, analysts understate the real extent of the US government’s financial commitments, which in reality exceed $65 trillion.

    Read More:

    https://www.rt.com/business/331115-u...ral-debt-rise/

    http://www.washingtontimes.com/news/...ew-record-set/
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    I wonder what is going to happen when the world realises the US & UK cannot make good on there debts.
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    We are still the super power. That's all that matters
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    Perhaps it's time America replaced its ludicrous tax code...
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    (Original post by Daniellaaa)
    We are still the super power. That's all that matters
    For now, but we are a declining power and in massive, simply massive debt. We've pissed off the East that's why they have formed new trade deals and banks excluding our currencies.

    And China and Russia ain't happy with constant military misadventures in the east, nor is Islamic countries either.
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    May prove interesting.
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    (Original post by anosmianAcrimony)


    May prove interesting.
    The national debt isn't really important, our debt to other countries is. The Central Bankers should take the hit for national debt because of bad monetary policies.

    But bad monetary policies internally usually translate to more external debt.
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    Too much money spent on regime changes in Middle East and oh yes, Ukraine.
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    (Original post by Dumachi)
    I wonder what is going to happen when the world realises the US & UK cannot make good on there debts.
    This is a good question that doesn't seem to ever get asked/answered by the so called experts. I would love to hear one explain in detail what the world would actually look like if our national debts were truly defaulted on. Perhaps the possibility doesn't get seriously discussed because the reality would be terrifying.
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    Prepare for global economic meltdown :sad:
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    Get rid of the US dollar as the world reserve currency, and the US will come crumbling down.
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    They have the mentality: "I'll be dead by the time we have to deal with it..."
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    I've pondered this issue before on government debts and i came to a simple conclusion before.

    It requires us to effectively to set world wide rates on tax.

    Something like 95% on people who earn more than a million.

    Basically people can still be rich but not stinky rich.

    There is no other way to pay it other than some serious inflation


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    And still by far the most powerful country on the planet

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    As scary as the 19 figure sounds, affordability matters more than the nominal amount and the US can afford the debt.

    The unfunded liabilities (guarantees) are what should really make you **** yourself.
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    (Original post by Rakas21)
    As scary as the 19 figure sounds, affordability matters more than the nominal amount and the US can afford the debt.

    The unfunded liabilities (guarantees) are what should really make you **** yourself.
    It depends if the public is willing to sacrifice so many hundreds of billions a year to service said debts and of course this is post crash debt so when another comes along it grows.

    In my opinion governments need to invest in physical infrastructure and research in the western economies and shift focus from short term money management and placating the public want on things like very expensive drugs in health care that give perhaps a 10% better chance of survival than a drug that costs a tenth of the price.

    The whole worlds gone mad fiscally and it needs to be taken control of


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    (Original post by paul514)
    It depends if the public is willing to sacrifice so many hundreds of billions a year to service said debts and of course this is post crash debt so when another comes along it grows.

    In my opinion governments need to invest in physical infrastructure and research in the western economies and shift focus from short term money management and placating the public want on things like very expensive drugs in health care that give perhaps a 10% better chance of survival than a drug that costs a tenth of the price.

    The whole worlds gone mad fiscally and it needs to be taken control of

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    True but i don't think people are overly worried so long as the trend is headed south. Right now the deficit to GDP is approaching the point at which growth exceeds it, at that point the debt will become ever more affordable as a proportion of GDP. From there the best thing to do is start to purchase the long dated debt to reduce the compounding interest payments over time.

    I agree that we should cut deeper and divert funds towards capital spending while maintaining fiscal surpluses.

    As i say, it's the unfunded liabilities that bother me more both in the US and UK given the potential domino effect if we are unable to survive an economic shock.
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    (Original post by Gregor Clegane)
    Get rid of the US dollar as the world reserve currency, and the US will come crumbling down.
    Along with the entire global economy with it.
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    (Original post by Mentally)
    Along with the entire global economy with it.
    Indeed, it perplexes me greatly why people seem to wish it. If the US defaults on all it's debt (the result of a dollar collapse) then Europe and China go down with it simply because we all hold so much debt of each others.

    Not to mention that sending a nation that makes up ~20% of global GDP into meltdown crushes most exporting nations overnight due to the lack of demand, same for commodity producing nations.
 
 
 
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