tag:blogger.com,1999:blog-6399730406480392183.post5623442888216122771..comments2024-03-27T11:18:34.222-03:00Comments on Viable Opposition: Ben Bernanke Finally Wakes Up and Smells the United States Debt CrisisA Political Junkiehttp://www.blogger.com/profile/03342345936277964422noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6399730406480392183.post-22634957514974947042012-03-12T19:36:44.867-03:002012-03-12T19:36:44.867-03:00Worry not my friends. The markets will take care ...Worry not my friends. The markets will take care of this in due coarse. Eventually, the bond markets revolt and the problem will be solved. Too bad the economy will make Greece look like a holiday.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-92047860960573777632012-02-03T18:43:00.442-04:002012-02-03T18:43:00.442-04:00APJ:
This link has some interesting facts.
Why wou...APJ:<br />This link has some interesting facts.<br />Why would the Domestic Series earn almost 8% interest, while the Foreign series earns over that?<br />I was aware that the trust fund earned about 4% (which means the fund is credited with unfunded debt at 4%). I wonder how that is calculated with 30 year Treasuries paying less than 4%?<br />Of course, the information does not detail how debt held by the public is actually paid -in general revenues, unfunded debt. or a combination of both.<br />Don LevitDon Levithttps://www.blogger.com/profile/02497731736648561272noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-90364322924961494732012-02-03T17:19:27.638-04:002012-02-03T17:19:27.638-04:00Start with this Don and I'll see if I can get ...Start with this Don and I'll see if I can get the other information somewhere:<br /><br />http://www.treasurydirect.gov/govt/rates/pd/avg/2011/2011_12.htmA Political Junkiehttps://www.blogger.com/profile/03342345936277964422noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-51660328606593167702012-02-03T14:00:33.050-04:002012-02-03T14:00:33.050-04:00APJ:
I understand the interest on debt held by the...APJ:<br />I understand the interest on debt held by the public is an immediate budget expense. Supposedly, it is paid out of general revenues.<br />Interest on intragovernmental debt (such as the Social Security trust fund) is paid in unfunded debt, with no immediate budget impact.<br />Do you have any figures showing what percentage of the interest on debt held buy the public is paid with general revenues, and what percentage is paid with increasing unfunded debt?<br />Or, is 100% of the interest paid with general revenues?<br />Don LevitDon Levithttps://www.blogger.com/profile/02497731736648561272noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-5583942433028725282012-02-03T11:34:13.124-04:002012-02-03T11:34:13.124-04:00Call me a pessimist, but I think that the problem ...Call me a pessimist, but I think that the problem is, for all intents and purposes, practically unsolvable. With the two year election cycle and the growing political divide, pandering politicians are unwilling to stick their necks out and make the very, very tough spending and taxing decisions necessary to get the job done.<br /><br />Mr. Bernanke really can't do anything, however, he doesn't get away without taking some of the blame. It is his (and his predecessor's fault) that consumer debt got out of hand, resulting in the near collapse of the economy. Certainly, we all have brains that tell us that you can't keep taking on personal debt forever without consequence, but the Fed's policy of keeping rates low is like dangling a needle in front of a junkie. What did he expect?A Political Junkiehttps://www.blogger.com/profile/03342345936277964422noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-44336229232927396402012-02-03T01:15:45.955-04:002012-02-03T01:15:45.955-04:00@PJ, You know I'm with you on your concern abo...@PJ, You know I'm with you on your concern about our deficit and the scary possibility of a huge increase in debt service costs. <br /><br />I know what I'd like Congress and the Prez to do--pass the <a href="http://moderatepoli.blogspot.com/2011/12/simpson-bowles-economic-plan-win.html" rel="nofollow">Simpson-Bowles deficit reduction plan</a>.<br /><br />But I'm not sure what the Fed chairman could or should do. He isn't the one making all that deficit spending. Can you recommend any ideas, yours or someone else's?ModeratePolihttps://www.blogger.com/profile/01721945380057992971noreply@blogger.com