tag:blogger.com,1999:blog-6399730406480392183.post5861233243658644740..comments2024-03-12T16:31:22.046-03:00Comments on Viable Opposition: An Interesting Look at the Interest on the U.S. DebtA Political Junkiehttp://www.blogger.com/profile/03342345936277964422noreply@blogger.comBlogger13125tag:blogger.com,1999:blog-6399730406480392183.post-62106482788400496212011-07-21T04:51:02.912-03:002011-07-21T04:51:02.912-03:00So what you are actually saying is that Obama and ...So what you are actually saying is that Obama and the demos are negligent to try to increase spending??!<br />In the US just like the UK those that are there to make the decisions seem to be unable or unwilling to make changes of sufficient magnitude to have any real effect. I don’t accept that they are not aware of the extent of the problem. <br />On the other hand most of the electorate are in denial and seem to be oblivious to the basic principles of compound interest. Result is prevention of any solution due to political inertia fueled by ignorance and denial of the problem. Of course no one in government wants to grasp the nettle, they would rather defer the problem to someone else.....at what point does that inaction become negligence?tuuyeshttps://www.blogger.com/profile/12761446609505200620noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-80537299676709745292011-02-17T14:22:02.310-04:002011-02-17T14:22:02.310-04:00It gets worse, the US has a "fiscal gap—the p...It gets worse, the US has a "fiscal gap—the present value of all its future spending (including servicing its official debt) less all its future taxes of $202 trillion—almost 14 times GDP. Greece, by comparison, has a fiscal gap of about 11 times GDP. " Quote is from today's update to The Economist, the author of this quote is Laurence Kotlikoff. Other interesting comments from other economists are there as well.<br />Luckily, the rest of my rant was lost in cyberspace, one didn't need to read it as I am a frustrated retired gov't employee who had to deal with the inanities of the planning, programming, budgeting, and execution system. The stories I could tell, but it would take a book length effort to explain and put into context so that the ramifications would be clear. It is highly complex and even most of the folks working in it didn't truly understand it, which made it even worse. Any simplistic view or statement just won't cover it. The budget issues have tendrils that reach in all sorts of directions and major effects are from areas you wouldn't even think of that have more influence that reason or facts.<br />Bluntly, any hope of stemming the tide was lost with the election of Bush the Lessor, maybe even with the election of Reagon.Garyhttps://www.blogger.com/profile/11845708955551600587noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-54299283077753178012011-01-26T14:46:18.786-04:002011-01-26T14:46:18.786-04:00Malcolm
It's 4 percent of GDP but one sixth o...Malcolm<br /><br />It's 4 percent of GDP but one sixth of revenues - two entirely different things.<br /><br />Thanks for the comment.A Political Junkiehttps://www.blogger.com/profile/03342345936277964422noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-72631342405931989682011-01-26T12:47:38.531-04:002011-01-26T12:47:38.531-04:00@call me ishmael: this "brown" person w...@call me ishmael: this "brown" person writing back to you is grateful that there are many US military bases around the globe or else me and my children would continue to be oppressed in the nation we were once living in. GOD BLESS the USA and for the hope it brings to the world and to the death it brings to the enemies of freedom.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-1962803704577817922011-01-26T02:18:20.857-04:002011-01-26T02:18:20.857-04:00Maybe you could just shave a few of your nearly ei...Maybe you could just shave a few of your nearly eight hundred oveseas miltary bases, stop killing brown people and generally grow-up a bit; even if it didn't postivedly effect your debt burden, it might make the world a better place; or would America rather be skint but tooled-up. (trans: tooled-up,UK slang, bristling with weapons)call me ishmaelhttps://www.blogger.com/profile/14369028864168461729noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-20704467799084084422011-01-25T22:47:32.345-04:002011-01-25T22:47:32.345-04:00you wrote: under this scenario, they would rise to...you wrote: under this scenario, they would rise to 4 percent of GDP (or one-sixth of federal revenues) by 2035."<br /><br />Isn't 4% = 1/25th ??Malcolm Mcleanhttp://www.yes4reverse.comnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-14432215202995405832011-01-14T08:53:53.247-04:002011-01-14T08:53:53.247-04:00Scary, sickening... And sadly a view that I've...Scary, sickening... And sadly a view that I've been seeing as happening to the US since Clinton was kicked out of office. Really, he cheated on his wife. Look at that raptor... I'd have done the same thing if I was in Bill's shoes! ..Not really, but it just isn't that big a deal when determining "Can this man bring the US into power?" The answer to that was an inescapable "yes!". Now with the surplus, the first the US had made in what, 50 years? More? down the drain and into the sewers thanks to Bush, Obama has to try and fix things... And it honestly looks like the US is about to be crushed under the weight of its own debt. Who knows, maybe Canada will be willing to buy you guys out for the same price as Newsweek was bought... a buck.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-17275961849185961402011-01-05T12:47:31.771-04:002011-01-05T12:47:31.771-04:00A Political Junkie:
Thanks for the web site.
Don L...A Political Junkie:<br />Thanks for the web site.<br />Don LevitDon Levithttps://www.blogger.com/profile/02497731736648561272noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-59332911707604896562011-01-05T06:49:42.793-04:002011-01-05T06:49:42.793-04:00I can't believe any politicians will have the ...I can't believe any politicians will have the necessary gumption to make the painful changes. They'd lose the grey vote! I see a near future where the US government goes bankrupt from the medical costs of the babyboomers and we end up with numerous old people dying before they'd prefer, probably in pain. So the rest of us (yes even US citizens who don't even live in the US) will be legally plundered of our wealth (what little we have) to care for other people's relatives. Of course by the time I'm old and grey there won't be a medicare system (and I haven't been able to have children) so I'm praying one of my many nieces and nephews ends up wealthy and just happens to love me!Cari Hislophttps://www.blogger.com/profile/15717398455999202660noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-31687583473600932232011-01-04T20:38:44.382-04:002011-01-04T20:38:44.382-04:00Don
Here's his website:
http://www.kotlikoff...Don<br /><br />Here's his website:<br /><br />http://www.kotlikoff.net/A Political Junkiehttps://www.blogger.com/profile/03342345936277964422noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-88802561125517290432011-01-04T15:42:47.825-04:002011-01-04T15:42:47.825-04:00Actually, I do have that book, but have just skimm...Actually, I do have that book, but have just skimmed it.<br />I have an E-mail "friend, " Scott Burns, who co-wrote the book with Kotlikoff.<br />When you post on his blog, maybe mention I will try to visit him, since my daughter just started school in Sept. at Emerson, in Boston, where Kotlikoff lives.<br />We planned to try to meet in October, at the parents' weekend, but I just did not have enough time.<br />What is the web site for his blog?<br />Don LevitDon Levithttps://www.blogger.com/profile/02497731736648561272noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-9832592573812997312011-01-04T14:17:48.381-04:002011-01-04T14:17:48.381-04:00Thanks Don. It looks like an interesting paper. ...Thanks Don. It looks like an interesting paper. Unfortunately, acting "sooner rather than later" may already be too late! I'm not certain if you've read Kotlikoff's book "The Coming Generational Storm" but it is along similar lines. If you don't mind, I may do a posting on the paper you recommended as an addendum to the posting I've already started on Kotlikoff.A Political Junkiehttps://www.blogger.com/profile/03342345936277964422noreply@blogger.comtag:blogger.com,1999:blog-6399730406480392183.post-74103621350877105782011-01-04T12:32:05.211-04:002011-01-04T12:32:05.211-04:00A Political Junkie:
Thanks for providing this info...A Political Junkie:<br />Thanks for providing this information.<br />At least the interest on the "surpluses" in the Social Security and Medicare trust funds, are not a current budget expense.<br />Rather, it is "paid" by issuing Treasury securities (additional debt, ouch)!<br />From a paper entitled "Social Security: Why Action Should be Taken Soon," published by the Social Security Advisory Board in Dec. 2010, it states:<br />Page 13 "The interest that accrues on Trust Fund bonds is paid out of general revenues. In addition, general revenues are used to redeem the securities held by the Trust Funds at maturity."<br />This would be great if the budget was running a surplus, and there were "general revenues" available.<br />Basically, what they are saying (or not saying) is that interest on the trust funds, and redeeming the principal and interest of the trust funds will be paid by increasing the debt held by the public.<br />http://www.ssab.gov/Documents/Social_Security_Why_Action_Should_Be_Taken_Soon_PrePublication.pdf.<br />Don LevitDon Levithttps://www.blogger.com/profile/02497731736648561272noreply@blogger.com