US and CA circling the drain

The US is too far in debt to ever climb out....and Californistan with it's huge pension deficit is orbiting the drain with the US

Category:

News & Politics

Tags:

• california debt
• us debt

[duanescot]

What im confused about is the different estimates of what % of our GDP = debt, is it from using different accounting principles? Also, how does this all come to a head and subsequently collapse, China or the world for that matter, calling on US debts?

[wakeupbreathing]

@duanescot I am using the straight 13T deficit now against a 14T GDP. Some gov figures that stuff out so the % is smaller.

The problems come when interest rates rise which Bernenke will have to raise when nobody wants our bonds. When rates go up the debt service will go up taking more out of the economy.

Or if nobody wants our bonds and it all collapses becasue the gov cannot borrow mo money and printing more will cause price hyperinflation.

[thmsmhgn]

Austerity budget? Be careful there, how much of this debt is real and not just a Ponzi scheme? Let's bring back tariffs and manufacturing to the US.

[wakeupbreathing]

@thmsmhgn We absolutely need to bring our manufacturing base back. But besides tariffs there needs to be some encentives or methods to help business level the labor costs in the US vs offshore. Unfortunately we can't have some guy making 25 bucks and hour on an assembly line putting lug nuts on a new car.

[hilololomoa]

thanks to fucking bush

[wakeupbreathing]

@hilololomoa Bush can't take the entire blame...the current POTUS and congress have sent US deficits to the moon. Same goes for Californistan....govenor and state legilature cannot stop the spending give-a-way.

Besides Bush has been gone for 18 months...when does the current pres become responsible???

[62636263c]

@wakeupbreathing You could flip a two headed coin and still loose on that one.

[wakeupbreathing]

@Tareq88 wait until we have a currency crisis in the US....that will be tragic

[wakeupbreathing]

@62636263c true the fed can and is inflating the currency....but which is worse hyper-inflation or collapse of the dollar...either way we are hosed

[62636263c]

No, we can climb out of this debt, all they have to do is inflate they're way out. That will of course really hurt the American people, but they don't give a crap about that. That is where my bets are placed for the time being.

[Tareq88]

All those homeless people in California... very tragic.