And more garbage talk on the debt ceiling....blah blah blah and more blahhh blahhh

[S2007S]

Yep that time again....more debt ceiling talk and how "catastrophic" it will be if it isn't raised, the same story each and every single time....the big scare and what will happen to the economy if it isn't raised and all that garbage talk....let's get it straight for the 8 millionth time, no need to talk about how catastrophic it will be since EACH and EVERY single time the debt ceiling threshold is reached they raise it by more trillions.... there will never be a time that they won't raise it...the US is addicted to debt and spending, that's it....if they really wanted to fix the debt crisis they would actually default and fix the problem, but why do so ...just create panic headlines about what will happen if it's not raised and then with the click of a few buttons just days before economy defaults the crisis is diverted....



"The U.S. actually surpassed its official debt limit at the end of 2012, but it has been suspended and reset multiple times over the years, most recently on March 15. The national debt currently is $19.84 trillion, compared to the $19.81 trillion limit."




Failure to raise debt ceiling would be 'more catastrophic' than Lehman collapse, S&P says

• Failure to raise the debt ceiling could have worse consequences than the collapse of Lehman Brothers during the financial crisis, S&P economist Beth Ann Bovino said.
• The ceiling already has been breached, but the Treasury Department has been using extraordinary measures to keep the government open.
• Bovino said if no agreement is reached, the government will shut down and the economy will suffer.

https://www.cnbc.com/2017/08/30/deb...re-catastrophic-than-lehman-s-and-p-says.html

 

[DeltaRisk]

They just can't do it. The government is the protector of the status quo. I'm positive the government can survive without the banking system, all countries in modern history did for thousands of years without a technical banking system. It's fluff, considering Americas position in the world.
You take America out of the equation and you have many countries ridding themselves of our form of "capitalism."
What do you think will happen if we default on our imaginary debt? SSI checks won't go out, military won't get paid, gov workers won't get paid.... etc.
And, riots riots riots. The banks in power know better than to bite the hand that feeds them(the people.)

 

[Humpy]

The debt mountain could be sold off to the Chinese to collect at will.

 

[OddTrader]

The debt mountain could be sold off to the Chinese to collect at will.

This time will not be called CDO.

Something else - Which is backed by one of the largest AAA rated asset owners.

The Chinese would have to acquire most the them reluctantly. Considering potentially what will be the future worth of the US currency deposits being kept on hand.

Besides, owning some states like Alaska may be not a bad idea!

 

[Humpy]

Not wishing to rub it in a bit BUT one can only wonder how the US politicians ever got such a rich country to the state it is now in. Pure incompetence for decades. Just throwing away its wealth in useless foreign policies abroad and rubbish policies at home.
Yes why not build stupid walls that will no doubt be non leak proof etc. Promote cities like Detroit on how not to run a big, once prosperous city.

 

[S2007S]

Not wishing to rub it in a bit BUT one can only wonder how the US politicians ever got such a rich country to the state it is now in. Pure incompetence for decades. Just throwing away its wealth in useless foreign policies abroad and rubbish policies at home.
Yes why not build stupid walls that will no doubt be non leak proof etc. Promote cities like Detroit on how not to run a big, once prosperous city.

Agree... you think where was the beginning of this setback and how come it just snowballed to what it has become today....it seems there is no worry in the world any more...as long as they keep raising the debt ceiling and have the fed printing trillions to back up any crisis then why worry, it's always rainbows and butterflies....

 

[OddTrader]

Not wishing to rub it in a bit BUT one can only wonder how the US politicians ever got such a rich country to the state it is now in. Pure incompetence for decades. Just throwing away its wealth in useless foreign policies abroad and rubbish policies at home.
Yes why not build stupid walls that will no doubt be non leak proof etc. Promote cities like Detroit on how not to run a big, once prosperous city.

Perhaps VAT could help. Figure-wise.

The US is the only country that doesn't have VAT type tax. During the first year of implementation of VAT, the tax is a provisional entry, therefore the IRS would receive in advance. That means much more than normally received money.

Also increase a big number of jobs, due to a lot of paperwork required for the whole nation.

https://en.wikipedia.org/wiki/Value-added_tax

8.16 United States

8.16.1 Discussions about a national US VAT
8.16.2 Trump administration


...


Trump administration
A border-adjustment tax (BAT) was proposed by the Republican Party in their 2016 policy paper "A Better Way — Our Vision for a Confident America",[30] which promoted a move to a "destination-based cash flow tax"[31]:27[32] (DBCFT), in part to compensate for the U.S. lacking a VAT. As of March 2017 the Trump Administration was considering including the BAT as part of its tax reform proposal.

 

[Humpy]

A lot of people still treat politicians vey favourably. What they say is often half truths or worst still, lies to get more votes.
They should be treated with the contempt they deserve and held to their promises by the people.

 

[OddTrader]

Perhaps VAT could help. Figure-wise.

The US is the only country that doesn't have VAT type tax. During the first year of implementation of VAT, the tax is a provisional entry, therefore the IRS would receive in advance. That means much more than normally received money.

Also increase a big number of jobs, due to a lot of paperwork required for the whole nation.

https://www.lexisnexis.com/legalnew...009/10/15/vat-in-the-usa.aspx?Redirected=true

10-15-2009

VAT in the USA

The global economic crisis has two diametrically opposed aspects, as things stand today. The first of these has created the current focus on economic stimulus; of getting consumers to consume; of encouraging lenders to lend; and of reenergizing the banking, manufacturing, wholesaling and retailing sectors. In other words, the emphasis is on getting markets back to a reasonable level of their former functionality. These strategies, in common with virtually all government initiatives, are ultimately being funded by the taxpayer, which brings us on to the flip side of the issue, which is now being addressed in a more serious way.


The situation has never been so dire for the national debt. Additionally, it has been estimated that the US will issue somewhere between $2.7 trillion and $4.2 trillion of debt over the next two years. With the federal deficit already racing towards $2 trillion and with many more billions likely to be paid out in funding to U.S. businesses and in stimulus packages before the crisis is over, how will we ever extract ourselves from the deepening debt hole that threatens to drain the economy for generations to come? Even before the current set of circumstances evolved, it was being forecast that spending on Social Security, Medicare and Medicaid alone would overwhelm the entire federal budget within the next 35 to 40 years.

...

When estimating the value of an NST to the U.S., there are many factors that need to be taken into account, but the key ones are rates, scope and exemptions. A Congressional Research Service report issued in October 2009 and based on 2008 figures, identified that the taxable base for a U.S. NST would be $8.8 trillion (if a broad based tax was introduced) or $5.1 trillion (if NST with various exemptions was implemented). Using these numbers and assuming a 7% rate, which would bring the country in line with the bottom end of global consumption tax rates (roughly in line with Canada and Mexico), and assuming a limited range of exemptions in the finance, food, healthcare and charity sectors, it is estimated that the net tax yield would be in the range $400 billion to $600 billion per year. However, the positive cash flow impact that the government would experience from NST would be considerably greater. This is an often overlooked benefit of such a system but, with far greater amounts of money circulating in the tax system and the significant balance of that cash flow favoring the government, a massive one-off but permanent cash flow benefit could boost tax income significantly.

 

[Arnie]

It's beyond stupid to pass a bill spending money and then not "pay the bill".