Current Events > America is Bankrupt and Republicans Couldn't Care Less

(+) Yeah! (+)

http://www.theamericanconservative.com/articles/america-is-bankrupt-and-republicans-couldnt-care-less/

The United States is effectively bankrupt, but that doesnt matter to the GOP. Once evangelists of fiscal responsibility and scourges of deficit spending, Republicans today glory in spilling red ink. The national debt is now $20.6 trillion, greater than the annual GDP of about $19.5 trillion. Alas, with Republicans at the helm, deficits are set to continue racing upwards, apparently without end.

This flood of red ink will increase. Last year the Congressional Budget Office figured the U.S. was going to again run trillion dollar deficits around 2022. An extra $10 trillion would be added to the deficit over the following decade.

But under Republican fiscal stewardship, analysts now believe the deficit could hit a trillion dollars next year. Why? Congress relaxed the sequester, eliminating its modest pressure for fiscal responsibility, and approved disaster relief, without making any corresponding spending cuts. Legislators also inflated military outlays, even though much of the Pentagon budget constitutes defense welfare, subsidies for prosperous and populous allies.

Even after the most optimistic accounting for the impact of increased economic growth, the tax bill will still add $500 billion to $1 trillion to the deficit over the coming decade. (In fact, those estimates probably understate the final cost since Congress is likely to extend provisions set to sunset in order to meet Senate budget rules.) If the president and Congress come up with an infrastructure bill, even more red ink will flow. The Committee for a Responsible Federal Budget predicts deficits of $1.05 trillion and $1.1 trillion in 2019 and 2020, respectively.

Welcome to modern Republican budgeting. Complained Congressman Walter Jones, the North Carolina Republican who has become a GOP dissident of sorts: At the time I joined, the Republican Party was very outspoken about the debt of the nation. I look at where we are as a nation now, and the Republican Party doesnt stand for less government and less spending. It spends like no tomorrow. Congressman Justin Amash, Republican of Michigan, was equally critical, telling Reasons Matt Welch: Its looking as bad as any time Ive seen Ive been in Congress. Legislators, Amash says, continue to move in the wrong direction.

The last time the deficit ran this high was 2012, part of a four-year, trillion-dollar-plus spending run in the aftermath of the financial crisis and ensuing bailout tsunami. This time Washington is breaching the trillion dollar barrier during seemingly good economic times
---

it makes duh libruls mad so of course repubs would be happy over it
---

Yeah the GOP always talks shit on democrats for spending money and here they are causing a massive increase to the deficit
---

Didn't read the whole article.

Both parties don't care about the deficit IMHO. I do find it funny when Obama was doing it Republicans were way up in arms and now you don't hear a damn peep when Trump does it.
---

WrkHrdPlayHrdr posted...

Both parties don't care about the deficit IMHO

You are correct. There really isn't a real reason we should be concerned with the deficit, but it certainly sounds good as a soundbite.
---

MC_BatCommander posted...

Yeah the GOP always talks shit on democrats for spending money and here they are causing a massive increase to the deficit

Sweden had a right-wing Government 2006-2014. Those parties also talk a lot about fiscal responsibility but they left a big deficit behind despite inheriting a surplus from the Socialdemocrats. After a couple years of new Socialdemocratic rule we have a surplus again AND the national debt has shrunk by around 10 percentage units.
---

It is a plan to screw over China since they hold a lot of US debt.
---

WrkHrdPlayHrdr posted...

Didn't read the whole article.

Both parties don't care about the deficit IMHO. I do find it funny when Obama was doing it Republicans were way up in arms and now you don't hear a damn peep when Trump does it.

Obama's spending improved the economy long term. Both the stimulus bill and ACA had good long term effects. Wasting money on a wall does nothing.
---

Tyranthraxus posted...

WrkHrdPlayHrdr posted...

Didn't read the whole article.

Both parties don't care about the deficit IMHO. I do find it funny when Obama was doing it Republicans were way up in arms and now you don't hear a damn peep when Trump does it.

Obama's spending improved the economy long term. Both the stimulus bill and ACA had good long term effects. Wasting money on a wall does nothing.

Lmao
---

Why can't we just default as a country and sell off California to the highest bidder
---

That debt can never be paid. It also matters less when you can just print money. The ones who actually suffer are the low and middle classes
---

WrkHrdPlayHrdr posted...

Didn't read the whole article.

Both parties don't care about the deficit IMHO. I do find it funny when Obama was doing it Republicans were way up in arms and now you don't hear a damn peep when Trump does it.

Yup. And vice versa its why i hate both parties
---

You have to spend money to make money. Trump will reduce our national debt to around 5 billion by the time his first term is up.
---

Tyranthraxus posted...

WrkHrdPlayHrdr posted...

Didn't read the whole article.

Both parties don't care about the deficit IMHO. I do find it funny when Obama was doing it Republicans were way up in arms and now you don't hear a damn peep when Trump does it.

Obama's spending improved the economy long term. Both the stimulus bill and ACA had good long term effects. Wasting money on a wall does nothing.

And this is the problem.

Both sides think their spending actually helps the country.
---

The world is bankrupt and no one gives a damn because theres no fixing it.
---

"Bankrupt" is an overly dramatic term to describe a country that can print a currency everybody in the world wants to hold
---

How much did Obamacare and the Student Loan Forgiveness Plan set us back again?
---

DifferentialEquation posted...

You have to spend money to make money. Trump will reduce our national debt to around 5 billion by the time his first term is up.

wanna bet your account on that
---

Antifar posted...

"Bankrupt" is an overly dramatic term to describe a country that can print a currency everybody in the world wants to hold

cant believe im saying it to an Antifar post, but this

What's more I'd add that it doesn't behoove liberals to adopt the language of debt scolds now, given that you plan to one day hold power again
---

Yep. There is no party of fiscal restraint, so this insanity will continue until the dollar is destroyed.

After we go bankrupt there should be a rule that any non emergency spending has to be 100% paid for by current tax revenue. If you want big government, you have to pay for it yourself rather than dump the bill onto the unborn. If you cant garner enough popular support to pay for your new pet program, tough shit.
---

Antifar posted...

What's more I'd add that it doesn't behoove liberals to adopt the language of debt scolds now, given that you plan to one day hold power again

good LAWD what is happening

this again

Antifar posted...

"Bankrupt" is an overly dramatic term to describe a country that can print a currency everybody in the world wants to hold

We will pay our debts in heavily devalued dollars.
---

It seems that both the Democrats and Republicans are going to spend more money than they have and get the country further into debt - because spending money is a great way to get votes and raising taxes is a great way to lose votes.

How long can this last? Who knows. We are already seeing the financial struggles of an entire generation (millennials)
---

tennisdude818 posted...

We will pay our debts in heavily devalued dollars.

that is literally the point of debt: you invest in assets that grow in value and pay for them with a currency that shrinks in value, and the debt is bought by those who are unable or afraid to invest in assets that grow in value faster than inflation.
---

Couldnt care less? You guys put us in this spot and we are saving things. Obama spent money like he had a key to the mint.
---

Payzmaykr posted...

Couldnt care less?

Fiscal conservatism everyone

tennisdude818 posted...

Yep. There is no party of fiscal restraint, so this insanity will continue until the dollar is destroyed.

After we go bankrupt there should be a rule that any non emergency spending has to be 100% paid for by current tax revenue. If you want big government, you have to pay for it yourself rather than dump the bill onto the unborn. If you cant garner enough popular support to pay for your new pet program, tough shit.

We are actually dumping the bill on China as they are our biggest debt holder.
---

Antifar posted...

What's more I'd add that it doesn't behoove liberals to adopt the language of debt scolds now, given that you plan to one day hold power again

Sadly, I think you are giving average voters in both parties too much credit here. Politicians have been playing this game of on again off again debt hawks for many years. Hell, FDRs campaign criticized Hoover for spending too much.
---

DirkDiggles posted...

How much did Obamacare and the Student Loan Forgiveness Plan set us back again?

Obamacare added a trillion dollars to the debt by itself, while accomplishing precisely none of it's stated goals.
---

DragonGirlYuki posted...

We are actually dumping the bill on China as they are our biggest debt holder.

china is not America's largest debt holder.

the social security pension fund is America's largest debt holder. I think the federal reserve bank may hold more, as well-

https://fred.stlouisfed.org/series/TREAST

China is the largest foreign debt holder, though. Japan follows close behind.


---

Supposedly 6 trillion of our debt is held by foreign nations. Why can't we just tell them that if they ever want to collect, they'll have to deal with our military first? There's a huge chunk of our debt gone right there, and it would be a return on our investment in our military.
---

Oh yeah. China is the biggest foreign holder though.
---

DifferentialEquation posted...

Supposedly 6 trillion of our debt is held by foreign nations. Why can't we just tell them that if they ever want to collect, they'll have to deal with our military first? There's a huge chunk of our debt gone right there, and it would be a return on our investment in our military.

because every dollar of US debt held abroad is matched by 89 cents of foreign debt held by the US
---

Im not,so....should i care?
---

It wasn't that long ago that these topics would pop up and there were no shortage of liberals and Obama slurpers that would come in and tell us all how debt and deficits were good things

The times they are a changing
---

Darkman124 posted...

DifferentialEquation posted...

Supposedly 6 trillion of our debt is held by foreign nations. Why can't we just tell them that if they ever want to collect, they'll have to deal with our military first? There's a huge chunk of our debt gone right there, and it would be a return on our investment in our military.

because every dollar of US debt held abroad is matched by 89 cents of foreign debt held by the US

Then we'll also use our military to get back the debts owed to us.
---

John_Galt posted...

It wasn't that long ago that these topics would pop up and there were no shortage of liberals and Obama slurpers that would come in and tell us all how debt and deficits were good things

The times they are a changing

you mean back when interest on the ten year treasury note was falling as low as 1.4%?

it is presently twice that.

and i'm still here saying "debt matters very little." for what it's worth. i was there, then, too.
---

DifferentialEquation posted...

Supposedly 6 trillion of our debt is held by foreign nations. Why can't we just tell them that if they ever want to collect, they'll have to deal with our military first? There's a huge chunk of our debt gone right there, and it would be a return on our investment in our military.

because then nobody will do business with us ever again
---

Darkman124 posted...

tennisdude818 posted...

We will pay our debts in heavily devalued dollars.

that is literally the point of debt: you invest in assets that grow in value and pay for them with a currency that shrinks in value, and the debt is bought by those who are unable or afraid to invest in assets that grow in value faster than inflation.

That has worked well during our 30 year bull market in bonds. When interest rates go up and out massive debt load has to be rolled over into more expensive debt instruments we will have a problem. And by the way, blowing trillions policing the world, fighting a war on drugs, and creating a Ponzi scheme in Social Security is not the same as investing in assets that grow in value.

The below is about Japan, but they are just further along than we are. I think this came from Hayman Capital.

https://www.youtube.com/watch?v=Njp8bKpi-vg" data-time="

Edit: I guess the video was only inspired by Hayman Capital. But it lines up with what Kyle Bass has said in interviews.
---

Muffinz0rz posted...

DifferentialEquation posted...

Supposedly 6 trillion of our debt is held by foreign nations. Why can't we just tell them that if they ever want to collect, they'll have to deal with our military first? There's a huge chunk of our debt gone right there, and it would be a return on our investment in our military.

because then nobody will do business with us ever again

We'll force them to with our military.
---

*shrugs*

What does it mean, practically speaking, for the US to be bankrupt?

Are we going to stop spending? We didn't need all the nonsense they waste money on anyway. Just screws up traffic for a year with no benefit.
---

stop responding to de
---

foreveraIone posted...

stop responding to de

Lol, don't you ever get tired of posting this?
---