I wonder what the exit plan is. One time conversion of social security into Trump accounts and call it a day?
U.S. debt-to-GDP ratio reaches 123%
21–30 of 233 posts
Re: U.S. debt-to-GDP ratio reaches 123%
#22Not an American, but I would argue that this level while little bit of a concern is not a huge issue for a superpower that borrows in its own currency and has the military and economic might to crush any party (sovereign or corporate) attempting move away from that system.
You guys are too powerful.
Re: U.S. debt-to-GDP ratio reaches 123%
#23Upsetting how we are reaching these lows while the administration is accusing everyone else of wasting taxpayer money except for themselves. At least under previous administrations you would get something for your money, like science funding and healthcare for the needy, not just bombing runs and posturing.
Both can be true. The previous administration bailed out the unfunded pension funds of cities and state employees when they did Covid-19 bailouts despite it having nothing to do with Covid-19 and without requiring these local governments to properly fund these pensions moving forward. They bailed these pension programs out many times more than their financial support for restaurants they forced closed. Basically, Ame…
It's likely not politically feasible for a genuine attempt at right-sizing our budget, although we have had attempts (short-lived) in the past. Blaming a political party for this is pointless, although there is a party that has postured as the fiscal adult in the room.
It could be a very messy bubble if/when it collapses, and I think our way out at this point would have to be AI-driven productivity gains. Hopefully Altman's little wish-granting machine ends up being accurate.
Re: U.S. debt-to-GDP ratio reaches 123%
#24It always gives me an ominous feeling to see these headlines. It's like we're walking out further and further on a frozen lake. "Hey, it's OK, the ice hasn't cracked yet! Let's keep going!"
I think that's a pretty solid (pun intended) metaphor.
Past performance is not a predictor of future returns.
Re: U.S. debt-to-GDP ratio reaches 123%
#25This still isn’t too bad compared to other countries, also, most of the AI industry profits are still yet to be fully realized.
I think you're being sarcastic, but can't quite tell.
If you're not - this is the 10th worst ratio in the world. The only countries worse are: Venezuela, Japan, Sudan, Singapore, Eritrea, Bahrain, Greece, Lebanon, and Italy. The difference has historically been that we've been able to exploit the dollar, export our inflation, and so on - but those times are fading.
Re: U.S. debt-to-GDP ratio reaches 123%
#26On the bright side it isn't growing and is down from the pandemic-era 132% of GDP. (Although maybe that was because GDP shrank rather than any change in fundamental debt.)
Are we looking at the same graph?
It appeared to drop from the 2020 highs, yes.
But it's definitely trending upward.
Re: U.S. debt-to-GDP ratio reaches 123%
#27It always gives me an ominous feeling to see these headlines. It's like we're walking out further and further on a frozen lake. "Hey, it's OK, the ice hasn't cracked yet! Let's keep going!"
end is probably ww btw. so are you all ready? last time it did work and lost of war debt was paid
Re: U.S. debt-to-GDP ratio reaches 123%
#28Earlier quoted context omitted.
Both can be true. The previous administration bailed out the unfunded pension funds of cities and state employees when they did Covid-19 bailouts despite it having nothing to do with Covid-19 and without requiring these local governments to properly fund these pensions moving forward. They bailed these pension programs out many times more than their financial support for restaurants they forced closed. Basically, Ame…
The problem is that half the political system thinks you can cut taxes and grow revenues. Which is an intentional strategy to repeal social programs that they’d never get the votes to do so via legislation
Right they (the politicians) don't actually think that, they just say that to get cooked projections. Once those revenue projections turn out to be false, it doesn't matter because they already have their tax cuts baked in. Then everyone can blame the other side for deficits and campaign on fixing it. Rinse and repeat.
Re: U.S. debt-to-GDP ratio reaches 123%
#29[flagged]
Wouldn't that require cuts to boomer handout programs?
Re: U.S. debt-to-GDP ratio reaches 123%
#30Let the market decide
Applies only if you are the reserve currency, label everyone else who don't use your currency the way you want it as currency manipulators and you can take whatever debt you want because well the printer can pay everything back in the future.