US Debt Ceiling, The Wall, Runaway Spending, & The Lack Of Evidence Of Concern... So Far

[rangerrebew]

US Debt Ceiling, The Wall, Runaway Spending, & The Lack Of Evidence Of Concern... So Far

by Tyler Durden
Aug 28, 2017 11:53 AM


Via Snake Hole Lounge blog,

The US Statutory Debt Limit, a failed tool to halt the endless growth of Federal debt issuance, is once again in play at nearly $20 trillion. It was only at $6 trillion in 2002.

The problem, of course, is runaway Fed spending which is currently at around twice that of Federal current tax receipts, requiring that the deficit be funded by issuing Federal debt (or raising taxes and/or cutting Federal spending).


The staggering increase in Federal debt starting in 2007 also resulted in a large spike in public debt to GDP.


http://www.zerohedge.com/news/2017-08-28/us-debt-ceiling-wall-runaway-spending-lack-evidence-concern-so-far

[Free Vulcan]

While I agree with the article, this is the usual academic presentation of aggregate charts and graphs.

Let's cut to the chase. This is about cash flow. If interest rates were 8%, right now and today, about 40% of our budget would go to interest. Since 75%+ of our budget is military and entitlements, imagine those getting cut by 40%.

Imagine another recession only as bad as the last where revenues plunged 20%. Suddenly that number becomes 6%. We'd also be running $2T deficits. Five years of that like the Obama recession and the number becomes 4%.

And so it goes on till even the current 2% interest rate is still half our budget paid in interest, DC is boxed in, and we have no where to go but down.

[Fishrrman]

Free Vulcan wrote:
"Imagine another recession only as bad as the last where revenues plunged 20%. Suddenly that number becomes 6%. We'd also be running $2T deficits. Five years of that like the Obama recession and the number becomes 4%."

It doesn't matter any more.
The numbers don't matter.
Use any numbers you want.
Make them as excessive as you wish.
It makes no difference.

This is just going to go on, and on, and on, and on, and on, and on, and on...
...until it can't go on any more, and then it will stop.

Think of it as a train without brakes going downgrade.
As long as there is a downgrade, and no curve sharp enough to throw the train off the track, it will keep rolling.
No one can stop it.
Only the curve at the bottom of the grade will do that.

We're just gonna keep rollin' until we reach that curve.
That's about all there is to it.

[Free Vulcan]

Free Vulcan wrote:
"Imagine another recession only as bad as the last where revenues plunged 20%. Suddenly that number becomes 6%. We'd also be running $2T deficits. Five years of that like the Obama recession and the number becomes 4%."

It doesn't matter any more.
The numbers don't matter.
Use any numbers you want.
Make them as excessive as you wish.
It makes no difference.

This is just going to go on, and on, and on, and on, and on, and on, and on...
...until it can't go on any more, and then it will stop.

Think of it as a train without brakes going downgrade.
As long as there is a downgrade, and no curve sharp enough to throw the train off the track, it will keep rolling.
No one can stop it.
Only the curve at the bottom of the grade will do that.

We're just gonna keep rollin' until we reach that curve.
That's about all there is to it.

At a certain point, cities are going to burn, anyone dependent on the govt for income such as the elderly will be cut off. We won't even be able to defend ourselves.

Markets crash, currency tanks, economy grinds to a halt. Welcome to Venezuela amigos!

[LMAO]

At a certain point, cities are going to burn, anyone dependent on the govt for income such as the elderly will be cut off. We won't even be able to defend ourselves.

Markets crash, currency tanks, economy grinds to a halt. Welcome to Venezuela amigos!

Every elected official deep down hopes that the reckoning doesn't happen on their watch. They all know what needs to be done to stave this off but they don't have the will. Yeah, you have those that have no connection to any reality like Sanders and Warren. But the rest know