Debt crisis... Lets get some perspective here!

**darkhorizon** · 08-08-2011

First, while the $14.2 trillion debt is large, keep in mind that the U.S. gross domestic product (GDP)—or the amount of money the country “earns”—is close to that same amount. More importantly, the ratio which financial investors most focus upon—the debt held by investors to GDP ratio—is about 70%, well within the range of other G7 nations.

Second, the interest payments on debt held by investors amounts to less than $200 billion. While seemingly a large number, this represents just 1.5% of our GDP. As a result, I believe that servicing our debt is highly manageable—even if rates rise from 2.5% to 3.5% on Treasury’s overall portfolio.

Finally, nearly half of the debt that we have outstanding is debt that we owe to ourselves, through trust funds like Social Security, Medicare, Medicaid, and other programs. These entitlement programs are promises made by the government to its citizens which, unfortunately, can be broken by politicians in the future to reduce the country’s overall debt burden.

Regardless, while the debt situation is currently manageable, the longer term fiscal path is unsustainable. Without meaningful fiscal reform, the United States potentially will be forced to make more drastic—and painful—adjustments at some point in the future.

**Dtrick22** · 08-08-2011

They really can cut down on quite a bit. Starting with welfare, you can't make that a way of life, there needs to be a limit when enough is enough and you need to get out and support yourself...I understand everybody is going to need help at some point in their lives and thats fine but I feel like so much money gets thrown away by people who abuse it....Also the amount of waste that goes into government "research" and all that junk...blows my mind. There is definitely a way to manage the debt, not going to be done overnight but it will get figured out somehow

**Neil98gt** · 08-08-2011

The debt will never go away, for every dollar we get from the federal reserve we have to pay back $1+ interest, but, if we have to "borrow" money to pay the interest, were just digging ourselves deeper and deeper.

**real diehl** · 08-08-2011

Can you do anything about it? No. Therefore I do not care. If you want to live in America, you really don't have a choice.

**lambokit** · 08-08-2011

How about, IF you receive FREE money (welfare) there's a mandatory drug test? If you fail no free money for 2 years. It seems all the dope slingers I have had dealings with had a EBT card. (food stamp card). They also have a roll of hundreds that would choke a horse. Just a thought anyway.

**darkhorizon** · 08-08-2011

Originally Posted by lambokit

How about, IF you receive FREE money (welfare) there's a mandatory drug test? If you fail no free money for 2 years. It seems all the dope slingers I have had dealings with had a EBT card. (food stamp card). They also have a roll of hundreds that would choke a horse. Just a thought anyway.

They are starting that program up here soon. Also locking down on who can recieve it.

The EBT cards are REALLY out of control in the flint area it seems... many of my friends seem to have one somehow....

**Ravenwald** · 08-08-2011

Yah, I've actually had people approach me and offer to sell me EBT 2 to 1. I turned it down on the basis that it's illegal and abuse of a system I believe should never be abused, but the mere fact he had it and was trading it for cash made me shiver.

**darkhorizon** · 08-08-2011

Originally Posted by Ravenwald

Yah, I've actually had people approach me and offer to sell me EBT 2 to 1. I turned it down on the basis that it's illegal and abuse of a system I believe should never be abused, but the mere fact he had it and was trading it for cash made me shiver.

I dont even want to tell some of the stories I have regarding matters like that..... Lets just say an aquaintiance of mine had a fairly large stack of those things.....

**tayl5645** · 08-08-2011

IN flint (prolly other college areas) alot of college kids who live on their own get them. I know a ton of people who have them because technically they do qualify based on the money they make.. even though they could live at home for a fifth of the cost...

**Ravenwald** · 08-09-2011

The stock market buckled Monday under the weight of a crisis in Europe and danger of recession at home. Reeling from a downgrade of American debt, the Dow Jones industrials plunged 634 points.

There's a major problem. The market is falling like crazy actually. It's lost a couple thousand points in as many weeks. It's not looking good. In fact, market analysts are saying that if we dip into another recession, it could be worse than the dip in 2007.

**Odi** · 08-09-2011

what do you mean? we never got out of the recession... i mean depression.

**16MustangVet** · 08-09-2011

This is all fairly simple yet people cant handle the truth!!!!

GOD DAMN FVCKIN TERM LIMITS!!!!

VOTE 'EM OUT 2012 anyone that is holding a seat right now vote for the person running against them!!!!

Doesnt matter dumbocrats or repukeicans!

This idiot president was just on the news today saying he "inherited" a large part of the financial mess.

Now I dont give a damn who voted for him or who didnt! This is over 2 years after he took office not to mention not a damn thing got done when they controlled the HOUSE SENATE and the Presidency!!!

WANNA know who to blame? All of them and All of US! Stop pointing the fvckin finger and the entire country needs to man up Im so tired of this BS!

Honestly as a parent that gives a damn about or economy I wonder what will be left for my sons generation!

**16MustangVet** · 08-09-2011

Originally Posted by Dtrick22

They really can cut down on quite a bit. Starting with welfare, you can't make that a way of life, there needs to be a limit when enough is enough and you need to get out and support yourself...I understand everybody is going to need help at some point in their lives and thats fine but I feel like so much money gets thrown away by people who abuse it....Also the amount of waste that goes into government "research" and all that junk...blows my mind. There is definitely a way to manage the debt, not going to be done overnight but it will get figured out somehow

Umm ever thought of this? Cut all the fvckin foreign hand outs 1st before cutting benifts to those in our own country!!! Now with that being said I do agree with half of what your saying.

**Odi** · 08-09-2011

It wont matter who you vote. Theres damn too many people and too much money at stake. Govmnt got a bit too big to be controled BY THE PEOPLE now.

**JoshsGTP** · 08-09-2011

I love me some!

**RegalGS98s** · 08-09-2011

If you go to a corner store in Camden, NJ. They don't know what to do if you try to pay with a Credit or Debit Card, all they know is EBT cards. And for incumbent politicians in NJ, there's a group called GRIP (Get Rid of Incumbent Politicians). I always vote for who I think will do the best job, but usually that ends up being the incumbent. I don't know about other states, but when you vote in NJ, it doesn't show who the incumbent is, you have to research ahead of time.

**Silver GTP** · 08-09-2011

Originally Posted by darkhorizon

First, while the $14.2 trillion debt is large, keep in mind that the U.S. gross domestic product (GDP)—or the amount of money the country “earns”—is close to that same amount. More importantly, the ratio which financial investors most focus upon—the debt held by investors to GDP ratio—is about 70%, well within the range of other G7 nations.

Second, the interest payments on debt held by investors amounts to less than $200 billion. While seemingly a large number, this represents just 1.5% of our GDP. As a result, I believe that servicing our debt is highly manageable—even if rates rise from 2.5% to 3.5% on Treasury’s overall portfolio.

Finally, nearly half of the debt that we have outstanding is debt that we owe to ourselves, through trust funds like Social Security, Medicare, Medicaid, and other programs. These entitlement programs are promises made by the government to its citizens which, unfortunately, can be broken by politicians in the future to reduce the country’s overall debt burden.

Regardless, while the debt situation is currently manageable, the longer term fiscal path is unsustainable. Without meaningful fiscal reform, the United States potentially will be forced to make more drastic—and painful—adjustments at some point in the future.

I agree with all of this except for calling social security an entitlement. Welfare is an entitlement. You put nothing in and you take money out. Social security has been taken out of my check and matched by my employer for 25 years. I don't consider something you pay for to be categorized as an entitlement. Social security would be sitting on a huge pile of cash right now from all these contributions if those a$$hats in Washington didn't keep "borrowing" it to fund all their wasteful spending.

Time to clean house and vote some people in who have some interest in serving this country and not flushing it down the toilet so they can get rich while they're in office.

**darkhorizon** · 08-09-2011

As much as we think that our SS fund is our "personal investment" account... It just isnt...

We have 401k plans for a reason... GM gave out pensions for a reason.... The idea of SS was invented to take care of old people that couldnt take care of themselves, and take care of people that do not have the physical or mental ablity to make a living for themselves.

It sucks, but our $80+ a month retirement investment account is just not what it sounds like it is.

**whitehead** · 08-09-2011

Recall every single congressmen and woman, as well as the senate. Just clean house. Then do not allow any single person in who says they are any party. The only ****ing party they should be working for is America. If they try and announce they are a party take there seat from them, stuff m in a burlap bag and beat them with ugly sticks. And I do support term limits on congress and Senate. But don't cut the Military! Cut foreign aid all together, half of them hate us anyways. When they start starving to death and being killed off by militant groups then they can come back on there hands and knees begging for forgiveness. Also stop funding of the UN. Find them a waste of money. We are already doing there work for them. And make all UN personell who have recieved a ticket in the US pay for the damn ticket. Still love my country though, best nation in the world.

**fireprix** · 08-09-2011

Too much needs to be done, we spend billions + on things we dont need, a new building for this or that, a little pay-raise here, oh, we're the world police, lets give money to these floundering countries. All the while we can't even secure our own boarders, we're having a hard enough time retaining our cultural identity, America cannot sustain, as is, without massive change. For crying out loud, we have our voting ballots in different languages. If you can't grasp enough of AMERICAN culture to at least have a passable knowledge of the language, you shouldn't be voting. (Since those will be voting for the ones that will give them benefits they didn't earn and other handouts we can't afford) The change is gonna hafta start with the gov't stepping aside. The inefficiency is absurd. Our constitution and bill of rights were based partly on the bible, separation of church and state isn't really possible. ok I'm gonna end rant here, because if I don't you'll all be reading for about another hour.