55% of the US National Debt Is the Result of Repaying Debt with More Debt

#1

Post by Four_Star » Thu, Jul 19, 2018, 1:54 PM UTC

55% of the US National Debt Is the Result of Repaying Debt with More Debt
thesoundingline.com

Re: 55% of the US National Debt Is the Result of Repaying Debt with More Debt

#2

Post by yuhong » Thu, Jul 19, 2018, 2:08 PM UTC

This reminds me of selling Bitcoin in order to pay off debt.

Re: 55% of the US National Debt Is the Result of Repaying Debt with More Debt

#3

Post by hcurtiss » Thu, Jul 19, 2018, 2:09 PM UTC

And it breaks my heart that both parties are to blame.

Re: 55% of the US National Debt Is the Result of Repaying Debt with More Debt

#4

Post by _bxg1 » Thu, Jul 19, 2018, 2:10 PM UTC

I was much more sad when I initially thought this was talking about the debts of individuals.

Re: 55% of the US National Debt Is the Result of Repaying Debt with More Debt

#5

Post by readhn » Thu, Jul 19, 2018, 2:11 PM UTC

yuhong wrote: post #2

This reminds me of selling Bitcoin in order to pay off debt.

more like paying off one credit card with another that has higher APR.

Next big crisis might be a sovereign debt crisis on a global scale. The only question is how long this can continue...until SHTF.

Re: 55% of the US National Debt Is the Result of Repaying Debt with More Debt

#6

Post by readhn » Thu, Jul 19, 2018, 2:13 PM UTC

_bxg1 wrote: post #4

I was much more sad when I initially thought this was talking about the debts of individuals.

Consumer debt is at all time high as well.

https://www.newyorkfed.org/microeconomics/hhdc.html

Re: 55% of the US National Debt Is the Result of Repaying Debt with More Debt

#7

Post by sp332 » Thu, Jul 19, 2018, 2:13 PM UTC

It's an interesting point and something that we should talk about. But the article doesn't really make the case that this is a waste of money. If it was advantageous to take on the debt in the first place, it might also be worthwhile to keep the debt on the books now. Presumably there is an interest rate at which it will stop being worth servicing the debt, but I don't really know where that point is.

Re: 55% of the US National Debt Is the Result of Repaying Debt with More Debt

#8

Post by seanmcdirmid » Thu, Jul 19, 2018, 2:14 PM UTC

readhn wrote: post #6

_bxg1 wrote: post #4

I was much more sad when I initially thought this was talking about the debts of individuals.

Consumer debt is at all time high as well. https://www.newyorkfed.org/microeconomics/hhdc.html

With inflation, GDP growth, and population growth, that is generally true at any time.

Re: 55% of the US National Debt Is the Result of Repaying Debt with More Debt

#9

Post by sp332 » Thu, Jul 19, 2018, 2:14 PM UTC

yuhong wrote: post #2

This reminds me of selling Bitcoin in order to pay off debt.

I don't quite get your comment... do you think BTC will be worth a lot more in the near future?

Re: 55% of the US National Debt Is the Result of Repaying Debt with More Debt

#10

Post by readhn » Thu, Jul 19, 2018, 2:14 PM UTC

readhn wrote: post #6

_bxg1 wrote: post #4

I was much more sad when I initially thought this was talking about the debts of individuals.

Consumer debt is at all time high as well. https://www.newyorkfed.org/microeconomics/hhdc.html

https://ycharts.com/indicators/us_total_debt