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Date: 03/21/12 08:00 AM

26 Responses to What Are The Dangers Of Too Much Debt?

  1. Profile photo of AntEconomist
    AntEconomist Male 40-49
    349 posts
    March 20, 2012 at 2:25 pm
    Link: What Are The Dangers Of Too Much Debt? - A 1% increase in interest rates will cost as much as the Iraq war.
  2. Profile photo of FoSchizle
    FoSchizle Male 18-29
    330 posts
    March 21, 2012 at 8:10 am
    Hey! An economic post without an obscene liberal spin made it on I-A-B!

    It`s scary what the truth holds, huh?
  3. Profile photo of RPossum
    RPossum Male 30-39
    1076 posts
    March 21, 2012 at 8:17 am
    yup
  4. Profile photo of RPossum
    RPossum Male 30-39
    1076 posts
    March 21, 2012 at 8:18 am
    Bottom line a responsible government\bank\household needs to never spend more than they make excluding cases of emergency, such as defense or natural disaster.
  5. Profile photo of Doctor_M
    Doctor_M Male 18-29
    9 posts
    March 21, 2012 at 8:27 am
    It was so nice to watch a video that talked about government without party leanings. Give that man a cookie
  6. Profile photo of I-IS-BORED
    I-IS-BORED Male 18-29
    2419 posts
    March 21, 2012 at 8:27 am
    Did he scale those war expenses to current dollars at all? He never said...
  7. Profile photo of Draculya
    Draculya Male 40-49
    14620 posts
    March 21, 2012 at 8:47 am
    Any person or institution that lends to an over burdened, under provisioned government in an inflationary bear market at 3% needs to have its head examined.
  8. Profile photo of heresjonny
    heresjonny Male 13-17
    104 posts
    March 21, 2012 at 8:57 am
    Ron paul
  9. Profile photo of Gerry1of1
    Gerry1of1 Male 50-59
    36653 posts
    March 21, 2012 at 8:58 am

    At this point, I`d buy stock in China, not USA.
    Canada seems a safe bet but Europe is iffy.
  10. Profile photo of LazyMe484
    LazyMe484 Male 18-29
    10441 posts
    March 21, 2012 at 9:09 am
    Last I checked you guys still had a deficit. Good luck paying down your debt right now.
  11. Profile photo of tedgp
    tedgp Male 30-39
    3287 posts
    March 21, 2012 at 9:35 am
    @rpossum. FOr households sure. For governments that method of budgeting rarely, if ever works. Use google and do a bit of research. Theres plenty of sites that go into a lot of depth about it.
  12. Profile photo of patchgrabber
    patchgrabber Male 30-39
    5812 posts
    March 21, 2012 at 9:40 am
    At this point, I`d buy stock in China, not USA.
    Canada seems a safe bet but Europe is iffy.
    The firm I get a lot of my investment advice from has been pushing "BRIC" stocks: BRazil, India, China. They have had great GDP growth, although I haven`t invested new money lately, so some might not be as good right now. Doesn`t matter to me as much how the stocks are doing, I still get my dividends.
  13. Profile photo of HalfPintRoo
    HalfPintRoo Female 18-29
    2765 posts
    March 21, 2012 at 10:41 am
    If everyone in America over the age of 18 gave $10 a year, we could pay down $2,500,000,000 dollars a year on our debt. We should do this for as many years as it takes.

    (I did that math on my own, so don`t whine about how wrong it is, if anything, it`s a low guess)

    I don`t like the situation we are in, I don`t like the thought of my hard earned money going to things I didn`t/don`t agree with, but I still feel responsible for my bills/debts and feel we need to do something about it NOW instead of watching things get worse.
  14. Profile photo of Thdot
    Thdot Male 30-39
    658 posts
    March 21, 2012 at 11:03 am
    I don`t trust this guy`s haircut.
  15. Profile photo of Ilikelogic
    Ilikelogic Male 40-49
    550 posts
    March 21, 2012 at 11:05 am
    He compares US debt to US war costs?
    ?
    ?
    ?
    Oh, this means someone thinks that stopping these wars will reduce US debt?
    Oh, i misunderstood that, sorry, go on.
  16. Profile photo of dang007
    dang007 Male 30-39
    596 posts
    March 21, 2012 at 11:23 am
    >>>We should do this for as many years as it takes. <<<

    Sure lets see that will take Uh forever as 2.5 Billion/year does not even cover the INTEREST on the debt much less actually make a dent in the principle. Even if if all went to principle it would take, 5,600 years. Something tells me that congress might just spend it on other things at some point.
  17. Profile photo of Fatninja01
    Fatninja01 Male 30-39
    25420 posts
    March 21, 2012 at 12:16 pm
    Debt... means you have more stuff. And everyone likes stuff
  18. Profile photo of CrakrJak
    CrakrJak Male 40-49
    17514 posts
    March 21, 2012 at 12:44 pm
    Totally agree with this guy.
  19. Profile photo of AntEconomist
    AntEconomist Male 40-49
    349 posts
    March 21, 2012 at 1:31 pm
    @I-IS-BORED: Yes, the numbers are adjusted for inflation. On the vertical axis it says "2011 dollars". That means the figures are all in terms of today`s purchasing power.
  20. Profile photo of 5Cats
    5Cats Male 50-59
    32785 posts
    March 21, 2012 at 2:33 pm
    See? THIS makes sense, and what is Obama doing? The OPPOSITE! That`s what.
    Obamacare is "funded" by a shell game: future revenue will rapidly rise, costs will drop, we`ll cut other funding & etc. That`s what the Dems base their projections on, and it ain`t ever happened and it ain`t gonna.
  21. Profile photo of apedrana
    apedrana Male 18-29
    144 posts
    March 21, 2012 at 5:31 pm
    How did you get into this much debt again?
  22. Profile photo of wiscesq
    wiscesq Male 30-39
    112 posts
    March 21, 2012 at 8:24 pm
    The national debt is too high and is unfair to children and future generations, but this guy`s analysis is simply wrong. While the government does refinance its debt to take advantage of decreasing interest rates, there is simply no reason it would refinance its entire debt if interest rates were increasing. New debt might be borrowed at the higher rate, but the interest expenses on the entire existing debt would not go up. If your mortgage rate was 5%, and the market went up to 7%, would you refinance your mortgage at the higher rate?

    Neither would the government.
  23. Profile photo of AntEconomist
    AntEconomist Male 40-49
    349 posts
    March 21, 2012 at 8:47 pm
    @wiscesq: 10 years ago, you`d have an argument. To take advantage of lower short term rates, the treasury has been rolling long term debt over to short term debt. The result is that the government debt is now highly exposed to short term interest rate changes.
  24. Profile photo of HalfPintRoo
    HalfPintRoo Female 18-29
    2765 posts
    March 21, 2012 at 8:57 pm
    dang007--- so we should do nothing?
  25. Profile photo of airsofter1
    airsofter1 Male 18-29
    1090 posts
    March 22, 2012 at 12:43 am
    obama: bitch please
  26. Profile photo of tobyvictory
    tobyvictory Male 70 & Over
    406 posts
    March 22, 2012 at 9:16 am
    The debt is an issue only during election cycles. All sides blaming the others. Other times mums the word. Except for teabaggers like this douche!

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