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USA Debt

nadger
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Registered: 13-04-2007

USA Debt

The more I see regarding this problem the more puzzled I get.
So you vote to increase your debt but where does the money come from?
If you increase your debt, and pay your bills, you keep your AAA credit rating but you're deeper in debt.
Rather glad I don't run our finances that way  Roll eyes
38 REPLIES
Community Veteran
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Re: USA Debt

something like $133,000 public debt per USA household at the moment.
Now Zen, but a +Net residue.
Community Veteran
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Registered: 12-08-2007

Re: USA Debt

The US debt clock:
debt
Community Veteran
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Registered: 12-08-2007

Re: USA Debt

The National Debt in the UK is stated to be £55,862 per person.
Quote
In 1997 Labour inherited a budget that was actually in balance. After a painful and turbulent decade under the Tories, the public finances had finally been brought under control. But after four years in office Gordon Brown took out the country's credit card and let rip. By the end of 2009-10 our annual deficit had ballooned to £170.8 billion.


The UK's debt clock:  UK Debt
Community Veteran
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Re: USA Debt

Heading towards Greek/Zimbabwe style deficit?, the USA digs itself deeper into debt:
Quote
The House of Representatives approved legislation to raise the U.S. debt limit by at least $2.1 trillion and cut federal spending by $2.4 trillion or more, one day before a threatened default

http://www.bloomberg.com/news/2011-08-01/obama-debt-cap-deal-with-congress-leaders-avoids-default-vo...
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Re: USA Debt

If I understand it correctly they have agreed to raise the debt level but have also agreed the same level of cuts to services to balance this out so in short they will still be in the same financial position in a few years as they are now  (well at least that's the theory)
As to where the money comes from, well you can print more but it's worth less to the point where it does become worthless !
Community Veteran
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Re: USA Debt

I don't think either side is happy with the compromise.  The Tea Party crowd wanted more cuts and the Democrats wanted tax hikes for the wealthy.  From what I've heard so far the general public is sick to the back teeth with the Tea party people and maybe Obama has emerged a bit better than he was a few weeks back Undecided
nadger
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Re: USA Debt

Community Veteran
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Registered: 12-08-2007

Re: USA Debt

I fear this is only a temporary solution.  The economy in the US will not be helped by what has happened and it could have a negative effect on our own economy.
nadger
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Registered: 13-04-2007

Re: USA Debt

Looking at debt graph you could well be correct
matt_2k34
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Re: USA Debt

Quote
In 1997 Labour inherited a budget that was actually in balance

And trying to "pleasure the voters" has meant they ran up a stupid bill. People are complaining at the tories/lib dems for the cuts, but dont realise the shit this country is in in terms of finances! NOR who is to blame!
Unions should take their head out of their arse, and get real, cuts are essential - particularly to the public sector (Whom have been throwing money down the drain for years) - by being "out of control" previously, we now have to cut harder to bring the finances in line. If things were just ran properly in the first place, then we'd still be in a good position now, rather than having to get rid of MORE jobs (you see, obviously we have to cut "more" to make a "bigger" saving, to ensure we can actually pay back some money, rather than just balance it, and the quicker we do it the better (less interest woo!).
Bloody working class labour numpties  Roll eyes - Gordon Blown and Tony bLiar have alot to answer for.  Grin
Regards
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Re: USA Debt

Quote from: Matt_2k34
NOR who is to blame!

On the contrary, I think many people with real life experience know who is to blame. Unfortunately that pretty much rules out all of our MPs who have zero real life experience or skill. All they have is "Say anything people want to hear" skills.
Quote from: Matt_2k34
arse

Thats an interesting find.. the swear filter doesn't swap out that word! Great stuff...  Grin
I need a new signature... i'm bored of the old one!
nadger
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Registered: 13-04-2007

Re: USA Debt

I see that USA has had it's credit rating lowered by one agency  Roll eyes
http://www.bbc.co.uk/news/world-us-canada-14428930
Community Veteran
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Re: USA Debt

This will have a psychological effect but I don't think it will cause any practical  problems to the US.  bet they'll be working very hard to get the rating back to where it was.
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Re: USA Debt

No real practical problems?
Billions wiped off the markets isn't a practical problem?  Shocked Real people are suffering for this artmo.
I need a new signature... i'm bored of the old one!