How United States' High Debt Will Weaken Economy and Hurt Americans

hello_10

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Save America Foundation (SAF) is a 501(c)(4) non-profit civic organization. SAF is nonpartisan and encourages political involvement and activism. Contributions to SAF are not tax deductible. Save America Foundation registration #:ch31949. A copy of the official registration and financial information may be obtained from the division of consumer services by calling toll-free 1-800-435-7352 within the state. Registration does not imply endorsement, approval, or recommendation by the state.


More Than 100 Million Americans Are On Welfare

There are more Americans dependent on the federal government than ever before in U.S. history. According to the Survey of Income and Program Participation conducted by the U.S. Census, well over 100 million Americans are enrolled in at least one welfare program run by the federal government. Many are enrolled in more than one. That is about a third of the entire population of the country.:toilet: Sadly, that figure does not even include Social Security or Medicare. Today the federal government runs almost 80different "means-tested welfare programs", and almost all of those programs have experienced substantial growth in recent years. Yes, we will always need a "safety net" for those that cannot take care of themselves, but it is absolutely ridiculous that the federal government is financially supporting one-third of all Americans. How much farther do things really need to go before we finally admit that we have become a socialist nation? At the rate we are going, it will not be too long before half the nation is on welfare. Unfortunately, we will likely never get to that point because the gigantic debt that we are currently running up will probably destroy our financial system before that ever happens. :usa:

It is really hard to believe how rapidly some of these federal welfare programs have grown.

For example, the number of Americans on food stamps has grown from about 17 million in 2000 to 31.9 million when Barack Obama took office to 46.4 million today. :toilet:

The federal government spent a staggering 71.8 billion dollars on the food stamp program in 2011.

That sure is a lot of money to spend on food.


And I thought that my grocery bills were high.

Medicaid is also growing like crazy.

The number of Americans on Medicaid grew from 34 million in 2000 to 54 million in 2011.

Once upon a time, Medicaid was supposed to help the poorest of the poor get medical care. In fact, back in 1965 only about one out of every 50 Americans was on Medicaid.

But now about one-sixth of the entire country is on Medicaid.

Will we all eventually be on Medicaid?

As I mentioned recently, It is being projected that Obamacare will add 16 million more Americans to the Medicaid rolls.

And we all know that projections like that are usually way too low.

Other federal welfare programs are exploding in size as well.

For example, federal housing assistance increased by a whopping 42 percent between 2006 and 2010.

The chart posted below was produced by Senate Budget Committee Republican staff. As you can see, the number of Americans on welfare just continues to grow and grow and grow"¦.



Keep in mind that the chart posted above does not even take into account the huge numbers of Americans that are on Social Security and Medicare.

In the United States today, more than 61 million Americans receive some form of Social Security benefits.

Just think about that.

That means that nearly one out of every five Americans is drawing on Social Security.

That is just crazy.

And in the years ahead we are going to see wave after wave of Baby Boomers retire and so the number of Americans drawing on Social Security is just going to keep going up.

The same kind of thing is happening with Medicare.

As I wrote about the other day, it is being projected that the number of Americans on Medicare will grow from 50.7 million in 2012 to 73.2 million in 2025.

Ouch.

That sure does sound expensive.

If you can believe it, Medicare is facing unfunded liabilities of more than 38 trillion dollars over the next 75 years.

That comes to approximately $328,404 for each and every household in the United States.

Will you be able to pay your share?

And that is just for Medicare.

The federal government just keeps becoming a bigger and bigger part of the health care industry.

Back in 1990, the federal government accounted for just 32 percent of all health care spending in America.

This year, it is being projected that the federal government will account for more than 50 percent of all health care spending in the United States.


Americans have become completely and totally addicted to government money, and word has gotten out to other nations that the U.S. is a place where you can live the high life at the expense of the government.

According to a report from the Center for Immigration Studies, 43 percent of all immigrants that have been in the United States for at least 20 years are still on welfare.

Keep in mind that the study only looked at immigrants that have been in the country for at least two decades.

Nearly half of them are still on welfare.

Needless to say, the system is fundamentally broken.

And there is no way in the world that we can afford all of this. We have rolled up the biggest pile of debt in the history of the world and our children and our grandchildren are facing a lifetime of endless debt slavery.

Once again this year we are facing a federal budget deficit of well over a trillion dollars, and very few of our politicians even seem to care.

We just continue to spend money as if it was going out of style.

At this point, spending by the federal government accounts for more than 25 percent of U.S. GDP.

The last time that happened was during World War II when we were trying to rescue the world from the tyranny of the Germans and the Japanese.

If you divided up the U.S. national debt equally, it would come to more than $134,000 for every single household in the United States.

Ack.

Overall, the U.S. national debt has gotten more than 37 times larger than it was when Nixon took us off the gold standard.

We are a nation of debt addicts, and both political parties have been responsible for getting us into this mess.

We simply cannot afford to continue to go down this road. We need to significantly reduce all categories of government spending.

And yes, we will always need a safety net.

But we simply cannot afford to financially support more than 100 million Americans.

That is absolute madness and it must stop.

More Than 100 Million Americans Are On Welfare - Save America FoundationSave America Foundation

Free Speech Rally in Manchester, Tennessee draws huge Patriot crowd
JUNE 5, 2013

June 4, 2013, was an historic day in rural Tennessee. Huge crowds gathered to attend the event titled, "Public Disclosure in a Diverse Society," put on by the American Muslim Advisory Council. This event was attended by U.S. Attorney, Bill Killian and FBI agent Kenneth Moore. :ranger:

The massive crowd gathering was in large response to an Internet article written by myself and posted on the Save America Foundation website called, "Is Rural Tennessee Becoming the Next Dearborn, Michigan?" ( Save America Foundation - Patriots in Action-conservative, educational and political website.Save America Foundation ) Several different patriotic groups were in attendance. Prior to the event, a Free Speech rally took place. Pamela Geller spoke along with yours truly.

Arriving early, I was interviewed by Fox 17 news station and I had the chance to interview several people myself. People were more than enthusiastic about their First Amendment rights being under attack. They did not want to see their rights threatened by the Federal goverernment. They did not hesitate to let their voices be heard. Americans of all stripes stood boldly in defense of free speech.

People arrived hours before the event with handmade signs. They joined together in songs like "God Bless America," "The National Anthem," "The Star Spangled Banner" and "America the Beautiful" all led by yours truly! The passion of American patriots in the heartland of America was alive and well in Manchester, Tennessee.

There were public prayers to God, proclamations of faith in Jesus Christ and even a prayer for Israel led by a man speaking Hebrew who asked all of us to face toward Israel during the prayer. :ranger:

The crowd's enthusiasm spilled over into the meeting. The audience had little patience for the agenda of the Islamic group trying to make moral arguments about how Americans in the heartland are just not open minded enough as a society to understand the complexities of Islam. Killian was booed and told to resign by the audience who did not appreciate being told that it could be considered "hate speech" to speak out against Islam.

The meeting was filled to capacity and hundreds stood outside, trying to get a glimpse through the window of what has happening.

After sitting through a propaganda piece called, "Welcome to Shelbyville," the crowd was told that only two questions would be taken. One gentleman tried to speak out and asked a very important question that we all wanted answered. That question was, "What constitutes hate speech?" Of course, the question went unanswered.

I did get a chance to talk to F.B.I. agent, Kenneth Moore, who asked me to turn off my video camera. He explained to me that hate crime legislation applies to all American Citizens. I asked him why then, do we need it in the first place? He couldn't seem to answer my question. I told him that he should be aware that this is just a slice ofsmall town America and citizens everywhere are starting to wake up to what our government is doing. They know what has happened to Dearborn, MI and they see the stories of Islamic violence breaking out all over the globe. The have no issue with Muslims, per se, only the Islamic agenda that would try to change the very law of the land.

One thing is certain. No law-abiding American wants to see Sharia Law come to Tennessee or any other state. One man, who was a retired Army Veteran and winner of the Bronze Medal broke down in tears over what is happening to his country. He had fought in three wars and didn't want to see the battle lost on the homefront.

After the event people were praying and singing "Amazing Grace" and quoting from the Holy Bible. It was truly an historical day and one that won't soon be forgotten.In fact, there are some things that America will and should never forget. God bless America. :usa:

Free Speech demanded by Patriots in Tennessee.Save America Foundation
 
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Re: How United States' High Debt Will Weaken Economy and Hurt American

USA has chosen a weak dollar policy for trade, us economy is still bigger than brick nations combined
And us gold reserves are also one of the highest in the world. A tightening of imports would solve almost
All us economic problems very few nations have this luxury.
 

average american

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Re: How United States' High Debt Will Weaken Economy and Hurt American

I used to live in Tenn, every week end there was some preacher preaching fire and brimstone from the courthouse steps which overlooked the mainstreet in town.
 

hello_10

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Re: How United States' High Debt Will Weaken Economy and Hurt American

The legacy of Obama and the Democrats.
If USA goes down the whole world will go down. All currency is tied.to US dollar.
Look at the increase in debt since Obama took office, and the number of years he has been president. He can still blame Bush? It amazes me how many Asians are Obama-worshippers. But then, he did say he wanted to be President of China.
USA has chosen a weak dollar policy for trade, us economy is still bigger than brick nations combined
And us gold reserves are also one of the highest in the world. A tightening of imports would solve almost
All us economic problems very few nations have this luxury
.

as per the topic of this thread, post#2 clearly states that US has to borrow at least $3.0billion+ every day to cover the expanses commitments, means around $1.2trillions needs to be borrowed every year to just make sure that the government is running, you may pay the Welfare+Defence+Salaries etc..... and this also means that the Debt to GDP ratio of US, which stood at around 107% by end 2012, would grow by around 6.5% to 7.5% every year this way.....

hence, even if we consider around 6.5% increase in Debt to GDP ratio of US every year, with already at 107% of its level till the end 2012, it would then bring US to around 159% Debt to GDp ratio by 2020, which itself means for a 'breaking point' of US's economy :wave:

US's Debt is now close to $17trillions and with the current rate of borrowing $1.2trillions, even after so many expenditure cuts, means for total US's Debt at around $27trillions by 2020, which is enough to even build even infrastructure of the whole world.... if Greece's economy goes down, you may help it. even if Italian economy comes down, you may try for that, but if this big economy goes down then you simply find yourself in the state of Soviet Union in early 90s, which resulted in around 400% depreciation of Ruble with bringing Per Capita Income down by 75% over the 90s :wave:

what I have said before, Russia had to destroy its arms/ decommission its ships in 90s as they couldn't bear its expanses and you haven't started the same as you may borrow debts. but for how long you may maintain this richness based on borrowing debts, we all are waiting to see :ranger: :usa:
 

hello_10

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Re: How United States' High Debt Will Weaken Economy and Hurt American



=> Bureau of Labor Statistics Data

=> U.S. National Debt Clock : Real Time

=> "¢ Countries with the highest public debt 2012 | Statistic


From Asia, Industrial Jobs will First Go Back to US+EU, hopefully by 2018/22

a developed country can't grow for more than 1.0% to 2.0% on long run, as per the average growth rate of US+EU economies for the last 20 years. but considering the Budget Expenditure cuts due to being already heavily indebted, if US+EU may maintain even 0% growth for the next 10 years, without any sudden fall like in late 2008, then it will itself be a big achievement for them..... while I sincerely believe that the issues of 2008 recession is always present, as per the news we read also. and considering the level of debts they already have, we don't find they may borrow in the same way this time also if they face any new recession like late 2008 :nono:

for a developing country, it would achieve 5%+ growth on long run, no matter how much debt it already has. but how the US+EU will reduce their debt level, without any projected growth due to so many budget cuts?????? while their economy size is struggling at the level of 2008 right now, along with population growth too :tsk:

we would see many funny things by end of this decade. while on my side, I have already predicted that from Asia, Industrial jobs will first go back to US+EU and then it will go to Africa :thumb:
 
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hello_10

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Re: How United States' High Debt Will Weaken Economy and Hurt American

further to the topic, we have one more statistics about "Public Debt Per Capita" of US, which excludes the external obligations too. we find it to be around twice in last 5 years time, and around thrice in 10 years time, as below :ranger:

US Public Debt Per Capita (Monthly, USD)
 
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hello_10

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Bujhate Diye Ki Dhadhak

Falling economies are trying to get something done at the very end, before the world may get completely changed, as already to an extent, as we can see even right now.......

US/West want to ensure their stake in this world before they will have lost their full credibilities, and their different wars every year like Libya war in 2010, and then they switched to Syria war since 2011, with Afghanistan going on/ Iraq war just finished, etc. along with different political/economical wars they have organized in this world, is nothing but to get something done by this or that way :facepalm:. but one thing is fully confirmed that they can't build their own society, they also know this fact, and hence they have to get something done in other countries now to ensure free Welfare/Free medical etc for their under high school passed people, along with bringing the most competent migrants of rest of the world to develop the best technologies for their industries this way....... I have said before too, Mr Bill Gates is the richest man of the world, not because he sold the technologies developed by their own American people, but it were the high qualified migrants, similar to the other US's billionaires..... and if these industries move to developing countries, as already to China/ASEAN/India etc we can see, then obviously we will now have process improvements/ upgraded technologies in the countries where these industries are now based.......

First these so called "Industrialized Nations" have lost their industries to China/Asia, and at the same time, their Service/ Marketing infrastructure based in West is also taking last breath :wave:. and before these Industries will finally move back to US/EU, hopefully by 2018/22 as I have estimated, and it will be the case when labor cost of US will fall below to China and hence making the production cost cheaper in US this way. and before they reach this certain state, towards which they are moving with a set space, they want to get something done in other countries before this certain fall of US/EU gets established :facepalm:

nothing came from sky and nothing will ever come from sky :nono:. whatever is new today will be old tomorrow and we need those people who may develop new technologies and improve the existing ones, and its possible only when they may maintain a grip on rest of the world, on the best talents of this world, along with keeping industries with their products "competent enough" to sell them in developing countries itself from where they get the most competent migrants..... while on my side, I may share my own experience that even '15%' price difference is enough to lose a project, no matter how much efficient/less maintenance required etc Western products you offer :wave:
 
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asianobserve

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Re: How United States' High Debt Will Weaken Economy and Hurt American

the reason why we now have so many wars, we are now on world war type things, similar to mid 40s :toilet:

If that's the case then the Americans have more to celebrate? Note that WW2 ended America's most severe depression, its current WW2-like wars should also end its milder economic malaise...?
 

hello_10

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Re: How United States' High Debt Will Weaken Economy and Hurt American

If that's the case then the Americans have more to celebrate? Note that WW2 ended America's most severe depression, its current WW2-like wars should also end its milder economic malaise...?

War is the Biggest Business of the World if You May Win, and US know this :usa:

there is no other way to pay for the expanses/ Welfare for their shiits/ incompetent population, who just can't build their society without high qualified migrants, as of 20th century. but its not enough now as we now find it an Asian Century, we now find heavy industrialization in Asia itself............ they have to fight more wars similar to 118th and 19th centuries, and they on their way too, if we have a look on the different Western wars. which are not only military wars but Trade wars/ Economic wars/ Culture wars/ Religion wars/ Language wars etc, along with ongoing military operations in different countries one by one :usa:
 

hello_10

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Re: How United States' High Debt Will Weaken Economy and Hurt American

I realize you lean right, but this statement reeks of partisanship. Clinton had balanced the budget. Bush II came up and screwed up the whole enterprise, or are you going to tell me that the recession of 2008-09 was also Obama's fault?
You must keep in mind that hello_10 is biased against USA. But I agree, government's mistake.
If USA goes down the whole world will go down. All currency is tied.to US dollar.
Look at the increase in debt since Obama took office, and the number of years he has been president. He can still blame Bush? It amazes me how many Asians are Obama-worshippers. But then, he did say he wanted to be President of China.
I used to live in Tenn, every week end there was some preacher preaching fire and brimstone from the courthouse steps which overlooked the mainstreet in town.

we also have a look on the comparison based on "Debt Per Capita" as below, :ranger:

http://ca.gdc.economist.com.s3.amazonaws.com/index.html#debt_per_capita+2012+o+in+xx+xx

http://ca.gdc.economist.com.s3.amazonaws.com/index.html#debt_per_capita+2012
 
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hello_10

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Re: How United States' High Debt Will Weaken Economy and Hurt American

I am not sure exactly what manufacturing competitiveness means. The Size of the USA economy is predicted to be 2nd in 2050.
Size of Economy (Year 2000 dollars): $22.3 trillion

Income per capita (Year 2000 dollars): $55,134

Detail: Even though the U.S. is no longer number one, the size of its economy will have doubled while adding roughly 90 million people to its population. About 430 million people.


China: Size of Economy (Year 2000 dollars): $25.3 trillion

Income per capita (Year 2000 dollars): $17,759

Detail: HSBC predicts that China will overtake the U.S. in size sometime over the next 50 years as its population surges to 1.43 billion. Even with the increase, its income per capita will remain outside the top 50 nations.

USA economy is predicted to be a little smaller then China with lot less people and 4 times the Percapita GDP.

India prediction is pretty good, considering
Size of Economy (Year 2000 dollars): $8.1 trillion

Income per capita (Year 2000 dollars): $5,060

Detail: India's economy will have skyrocketed by 2050, growing from $960 billion to more than $8 trillion. The country will also add 400 million more people to its population over the next half century.


Read more: These Economies Will Dominate The World In 2050 - Business Insider


Read more: These Economies Will Dominate The World In 2050 - Business Insider

US's High Debt and it's effects if the Industries Back

things don't work on linearity, with a sense of continuity :nono:

US/EU has borrowed so much debt since 2008 recession that they can't afford the same if they face any new recession, while the factors of 2008 recession are more stronger now. as US/EU simply didn't have any growth since 2008, nor they are going to introduce any new technology in future which may change the world, and hence maintain a new flow of money from the rest of the world this way.....

there is a purchasing power factor behind the lifestyle we talk here, while US/EU economies have many 'Value Added' factors for the imported products also, making their economies 30% to 50% higher than usual developing countries....

for example, it costs around $3.2 (200 rupees) for a Medium Size Coffee in Sydney while the same is sold for hardly 25 to 40 Rupees in India, pretty good one. now the shop owner of US may earn over $100k this way, while the same would be around hardly 6.0 lacs ($10,000) for a similar size coffee shop of India...... this is how purchasing power differs. the economic size, based on 'exchange rate' factors have limited effects on the usual economic talks we have. just few days before, we discussed that Japanese Yen has fallen from 78 per US$ to around 102 by the last month, resulted their economy down from $6.0 trillion to around $5.0 trillion within just few months.........

but you pay hardly $15 for shirt in KMART etc, and $40 is enough for a jeans then its because these items are imported from China, similarly the TV, fridge, cars, industrial products, including food products etc too. i do remember, we were struggling hard to reduce 'service cost' to 50% of the total product cost of the products we used to sell, as the factories were based in China, only assembly line we had in Sydney. (It was the largest industrial pump manufacturing company of world.) and this is how US/EU/Western economies have been hollowed from inside...... and if you get these industrial jobs back then it will result in 'very high' inflation for the next 10-12 years, which will in fact break down the economy, as you now have over 110% 'Debt to GDP' ratio, to date. and higher the inflation, say 10% for the first 5 years similar to developing countries, and higher the interests you will have to pay on it. for example, for inflation at 10%, you will have to pay at least 10% interests on the debt, means 11% of GDP for the interests only this way, for 110% Debt to GDP ratio. while Budget Expenditure of US is around 22% to GDP only, which itself require at least $1.0 trillions borrowing every year 'at present'. the Budget Expenditure of US, whose 70%+ goes for only Social Security+Medical+Defence+Interest payments at present :tsk:

US/EU will have experience like how Russia had in 90s, which resulted in 400% depreciation of Ruble and around 75% fall in per capita income over the 90s.....:ranger:

U.S. National Debt Clock : Real Time

The US Debt Piles Up
 
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hello_10

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Re: How United States' High Debt Will Weaken Economy and Hurt American

further to this topic, we have a news as below too :thumb:

Eurozone: three countries have debt-to-income ratios of more than 300%

Figures expose indebtedness of eurozone governments in relation to government revenues – UK is sixth with ratio of 212%

Ireland, Greece and Portugal are labouring under debt-to-income ratios of more than 300%, according to figures that expose the indebtedness of eurozone governments in relation to their government revenues.

The measure, intended to show governments' abilities to pay debts, shows Ireland's total debt in 2012 was €192bn (£163.1bn), or 340% of the government's income. Ireland came a narrow second in the table to fellow bail-out recipient Greece, which has amassed an even worse debt-to-revenue total of 351%. Portugal – which has also received aid from the troika of the International Monetary Fund, the European commission and the European Central Bank – came third with a debt-to-revenue ratio of 302%, while Britain was sixth last year on the list of 27 European Union member states, with a debt-to-revenue ratio of 212%, according to calculations based on European commission figures.

Debt figures are usually calculated as a ratio of a country's national income and expressed as a proportion of GDP. But national income figures reflect activity across the whole economy, in both the public and private sectors. governments must pay debts from tax receipts and other government income, not the income for the economy as a whole. Some analysts argue a government's debt-to-revenue ratio provides a clearer picture of its ability to fund annual debt payments once interest rates are taken into account.

The US is in even worse shape than Greece. Its $16tn (£10tn) debt is the equivalent of 105% of GDP, but more than 560% of government revenues. Washington's debt payments are cheap after a plunge in the interest it pays on government bonds, but with revenues of only 14% of GDP compared with about 40% across much of the EU, its ability to pay is weakened. :facepalm:

Ireland, which is often commended for its recovery from the banking crash, has seen a sharp rise in its debt-to-revenue ratio in the last four years. In 2009 the ratio was 187%. A year later it had jumped to 262% before reaching 340% in 2012. However, the country appears to be in better shape when debt-to-GDP figures are used. It ranks fourth, with a 117.6% ratio, after Greece, Italy and Portugal.

Greece's performance, by contrast, has improved. It has pushed through a huge clampdown on government spending and has seen its ratio fall from 402% in 2011 to 351% in 2012.

Some of Europe's strongest economies have jumped up the league table of indebted EU nations when the debt-to-revenue measure is used. Germany has a ratio of 181%, Malta's is 178%, while France has a ratio of 174%, all higher than countries that are often cited as troubled and at risk of default such as Slovenia (120%) and Hungary (168%).

The healthiest economies according to the debt-to-revenue measure are the Nordic nations, where Sweden enjoys a 75% ratio, Denmark a 82% ratio and Finland a 99% ratio in 2012. :thumb:

In the aftermath of the 2009 banking crash, the US investment bank Morgan Stanley argued that debt-to-government-revenue ratios should be included in any discussion of a possible sovereign debt default.

Analyst Arnaud Marès, who has since left the firm, said in August 2010: "Whatever the size of a government's liabilities, what matters ultimately is how they compare to the resources available to service them. One benefit of sovereignty is that governments can unilaterally increase their income by raising taxes, but they will only ever be able to acquire in this way a fraction of GDP.

"Debt/GDP therefore provides a flattering image of government finances. A better approach is to scale debt against actual government revenues. An even better approach would be to scale debt against the maximum level of revenues that governments can realistically obtain from using their tax-raising power to the full. This is a function of the people's tolerance for taxation and government interference. Seen from this angle, the US federal debt no longer compares quite so favourably with that of European governments."

In 2010, US debt to revenue was 365% :tsk:

Eurozone: three countries have debt-to-income ratios of more than 300% | Business | The Guardian

in fact, at Actual Total Revenue at $2,450.2 trillions and Debt at around $17.0trillions as below, we find Debt to Income ratio of US at around: 17.0/2.450.2 = 693% :ranger:

U.S. National Debt Clock : Real Time

US Federal Budget Revenue Estimate vs. Actual for FY2012 - Charts


with that, if we have a look on the current borrowing rate of US to cover the Budget Expenditure, which requires borrowing at least $3.0billion+ every day, then we find this ratio to grow by around 40%+ every year, with this rate :tsk:

(the Budget Expenditure of US, which requires around 70% on Social Security+Medical+Defence+Interests only, and then the number of government expenditure also comes :toilet:)

 

hello_10

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Re: How United States' High Debt Will Weaken Economy and Hurt American


=>
Indias credit rateing is BBB- same as Spain.
true, but could you please use your IQ to tell us, why the same 'triple B' we see in case of other emerging economies like Brazil, Turkey, Mexico, South Africa etc in this picture as below????

the emerging economies have lower Credit Rating because of the 'under-developed' infrastructure etc and other risks associated with an emerging developing economy. but US and other countries are loosing their ratings because of the facts that they have borrowed so much debt, which may eventually result in fall of their economies too. a 'new risk' in the developed economies, which can't grow like developing countries but at the same time most of them have got over 90% Debt to GDP ratio to date :wave:


=> with that, would you like to know, why US lost its rating, in spite of being among the front line developed countries? check the news as below, which does mean that Credit Agencies are now worried that US may have the similar experience as Russia had in 90s, sooner or little late. the reason why US lost its 'triple A' when it crossed 97% Debt to GDP level in 2011........

(an emerging developing economy like Turkey, Brazil, India, China, SOuth Africa etc would always grow, at least 5%+ on long run, but the US+Eurozone economies may hardly dream for their 1.5% average growth rate they had since 1990, which itself isn't looking easy if we have a look on the hefty Budget cuts they have done to control debt borrowings.)


=> here, further to the post#34, in fact at Actual Total Revenue at $2,450.2 trillions and Debt at around $17.0trillions as below, we find Debt to Income ratio of US at around: 17.0/2.4502 = 693% :ranger:

US Federal Budget Revenue Estimate vs. Actual for FY2012 - Charts

US National Debt by Year 2008_2018 - Charts Tables History
 
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hello_10

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Re: How United States' High Debt Will Weaken Economy and Hurt American

Indias credit rateing is BBB- same as Spain.

its simple that there is very less political risk, easy financing, easy to do business etc, along with pretty good infrastructure we find in the developed countries. so there is no reason why can't they have 'triple A' rating. but if we find Spain, Italy, Portugal, Ireland, Cyprus, Greece etc in Yellow in this picture then its all about the fact that they have got the 'new risk' of high debts. the same we find in case of US, which is loosing its color too, less green it is now :coffee:

few factors governing these ratings is as below: :tup:

A.M. Best defines country risk (read the methodology) as, "the risk that country-specific factors could adversely affect an insurer's ability to meet its financial obligations." Country risk is evaluated and factored into all A.M. Best ratings. As part of evaluating country risk, A.M. Best identifies the various factors within a country that may directly or indirectly affect an insurance company.

Best's Credit Ratings & Analysis
 

hello_10

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Re: How United States' High Debt Will Weaken Economy and Hurt American

Cultural Impact on the US's Economy

While Americans represent about 5 percent of the world's population, nearly one-quarter of the entire world's inmates have been incarcerated in the United States in recent years.[3] Imprisonment of America's 2.3 million prisoners, costing $24,000 per inmate per year, and $5.1 billion in new prison construction, consumes $60.3 billion in budget expenditures. :toilet:

United States incarceration rate - Wikipedia, the free encyclopedia


Inviting Western Culture and its all the Right and Wrong

first, Indian police doesn't need to handle a heavily armed nation like US........

U.S. most armed country with 90 guns per 100 people | Reuters

About 11,100 Americans died in gun-related killings in 2011, according to preliminary data from the U.S. Centers for Disease Control and Prevention. There were 19,766 suicides by firearms in 2011, the CDC said.

Thousands march against gun violence in Washington | Reuters

now compare India with US in this report as below: (US's 30,000+ gun related deaths with Indian 799 last year.)

The recent Maoist violence in Bastar, which left 28 people dead, is no aberration. The Global Peace Index (GPI) 2013, which was released on Tuesday, has ranked India among the 25 least peaceful nations to live in. The country was placed 141 among 162 nations, having lost more than two lives a day — or a staggering 799 persons — to internal conflicts in 2012.



India among world’s most violent places: Study - Times Of India


as i also have experience, and you living in UK, US, Australia, Canada too. here, do you see people doing preparing for exams for Clerk, engineering, IAS/IPS, medicines, banking etc etc there, similar to India????? a civilized society like India doesn't need to equip its police like US

they can only fcuk here and there, as they do :thumb:

here, we have Rapes Per 100,000 population statistic as below too:


United States 28.6 :usa:

United Kingdom 23.2 :uk:

India 21,397/125,00 (100,000)= 1.7 :india:

(considering indian population at 1250,000,000)

Rape Statistics | Statistic Brain


=> its simple that if the Cultural Background is not good, no matter how much Social Security+Medical you provide, you can't have a 'civilized society'....... its account for about 45% of the total US's budget and they have the type of people who can't understand, "why to maintain 'peace' if you don't get free Welfare?????"

(while this Budget expenditure itself requires at least $1.0 trillion borrowing every year by US, which has already increased its Debt to DGP level to 110%, a developed economy which can't grow for more than 1% to 2% a year, and at the same time it has got the level of debt, it can't pay back too, and has to keep borrowing $1.0 trillion+ every year too.......)

i still get scared to think that India may reach the state of US one day...... but yes, as India is still not a developed country, life is tough as you don't get Welfare like US, so we find India to be considered as, as corrupt country as other major emerging economies like Brazil, Mexico, China, South Africa, Turkey etc......

India 72 in corruption index: Transparency International

India has improved its position in the comity of nations in terms of integrity as it is ranked 72 among 180 countries in the corruption index this year, Transparency International has said.

It was at the 70th position among 163 countries last year.

Accordingly, India's integrity index has marginally improved to 3.5 in 2007 from 3.3 a year ago on a scale of 10 points, TI said in a report released today.

India's rank at 72 in corruption index is also shared by China, Mexico, Morocco and Peru. Pakistan is way down at 138th position.

India 72 in corruption index: Transparency International - Times Of India
 
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hello_10

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Re: How United States' High Debt Will Weaken Economy and Hurt American

No, The United States Will Not Go Into A Debt Crisis, Not Now, Not Ever

FORBES

If there's one article of faith in Washington (and elsewhere), it's the idea that the United States might get into a debt crisis if it doesn't get its fiscal house in order.

This is not true.

The reason why it's not true is because we live in a fiat currency system, where the United States government can create an infinite number of dollars at no cost to meet its obligations. A Treasury bill is a promise that the government will give you US dollars–something that the United States government can produce infinitely and at no cost.

That's the reason why interest rates on United States debt have only gone down even as the debt has ballooned. That's the reason why Great Britain has very low rates on its debt despite having very high debt-to-GDP. That's the reason why Japan has an astounding debt-to-GDP ratio and still enjoys some of the lowest rates ever. Investors have bet for so long that there would be a run on Japanese debt and have ended up so ruined that in financial circles that trade is called "the Widowmaker". (Here's a more detailed analysis by my former colleague Joe Weisenthal at Business Insider.)

Well, what about Argentina? Argentina had to default on its debt because it had pegged its currency to the US dollar. It wasn't sovereign with regard to its currency since it had to maintain its currency's peg. It wasn't Argentina's debt that caused it to default, it was its currency peg.

What about Greece? Same thing. Greece hasn't used its own currency for ten years. Of course it's going bankrupt.

Does it seem that strange that governments can't run out of money?

You don't have to take my word for it. How about Alan Greenspan? He said (PDF): "[A] government cannot become insolvent with respect to obligations in its own currency. A fiat money system, like the ones we have today, can produce such claims without limit."

No, The United States Will Not Go Into A Debt Crisis, Not Now, Not Ever - Forbes

look, even if Debt to GDP level of India is around 67% but still its means for around $1.2 trillion debt only, including internal and external debts both. while Indian foreign reserve is itself around $300 billion, (which also means for borrowing debts of US and other countries as foreign reserve?), which is around 85% of total foreign debt of India. heance leaving only around $950billion debt this way.....

from here, India and other emerging developing economies would grow by at least 6%+ for the next 20 years, hence this ratio would obviously fall by the passage of time. same like about Argentina you mentioned, which would grow by at least 3.0%+ for the next 20 years, so their debt to gdp level would also come down this way, as it happened in past in case of Argentina....

but US at per capita income at around $50,000 won't have growth, more than 1.0%+ for the next 10 years, which is considering its best scenario of oil/gas reserve itself..... your $17.0 trillion+ debt is all about the money you have borrowed from the home and foreign debtors, which will finally come from the pocket of common US's civilians :smile:. for example the recent proposal to increase taxes on the riches of US, which has in fact resulted in high renouncing of US's citizenship too.....

=> High taxes force more Americans to renounce their citizenship


and about Japan type countries, then have a look on their earning per debt as below :ranger:. its far less than US's 700% Debt to Revenue ratio, as discussed before...

https://www.cia.gov/library/publica...apan&countrycode=ja&regionCode=eas&rank=78#ja

its 33.5% for Japan, as a developed country, similar to many of EU, while US is on far low at around 15%, even if its a developed country too :tsk:. Japan is highly industrialized, and the time they reach 120 Yen to US$ ratio, it will only be a celebration for its economy as their products are highly competitive as compared to other Western nations, including US......... also, Japan at around 220% Debt to GDP means for around $70,000 debt per capita, while its around $54,000+ per capita of US at 110% of Debt to GDP ratio, to date, which is increasing too. with considering the fact that per capita income of US is close to $50,000 while that of Japan is around $34,000 hence it may still grow to at least $45,000+.......

similarly, if we exclude foreign reserve of India then it will bring down its debt to hardly around $950 billion, around, means around $900 per capita debt only, with enough opportunity to grow to at least $10,000 on 'nominal term' :india:

(while we do know that PPP per capita income of Indian Middle Class is well above $20,000+, similar to very high HDI countries like Poland, Argentina, Saudia Arabia etc, at the number 350 million+, as discussed before too :thumb:)
 

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