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National Debt
Old 02-13-2019, 08:20 AM   #1
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National Debt

The national has hit 22 trillion. Ouch. The next recession could be a doozy. Any worries.
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Old 02-13-2019, 08:36 AM   #2
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I try not to worry about things I can't control.
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Old 02-13-2019, 08:39 AM   #3
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Will be interesting along with any interest rate rise.
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Old 02-13-2019, 08:41 AM   #4
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2 college kids and 1 "fighting adulthood" millenial at home. I worry more about whether or not I'll have to bury a body and come up with an alibi.
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Old 02-13-2019, 08:46 AM   #5
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I guess it helps that the Feds have a printing press. They can eliminate some of the debt through inflation (a tax on all). But, there has to be a tipping point. I don't know if anyone knows where that point is.
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Old 02-13-2019, 09:03 AM   #6
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Quote:
Originally Posted by ripper1 View Post
The national has hit 22 trillion. Ouch. The next recession could be a doozy. Any worries.
https://www.cnsnews.com/news/article...hits-trump-era

To summarize the key point in this Jan. 4, 2019 article.
Quote:
When Trump became president in January 2017, 152,076,000 Americans were employed. Last month, that number grew to a record 156,945,000, a gain of 4,869,000 in two years.
So, 22,000,000,000,000 / 156,945,000 = $140,176 / employed person

https://www.populationpyramid.net/un...-america/2018/

This article says there were 328,835,763 citizens in 2018.

So, $66,903 / citizen.

Either way you cut it, HOLY MOLY!
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Old 02-13-2019, 09:04 AM   #7
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If you feel courageous dig a little into the results of a Google of:

"China and United States Debt"

Be prepared for a few hours of reading to "get" the relationship. (go to the investment related websites. )

Hint... "It ain't gonna be easy".
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Old 02-13-2019, 09:26 AM   #8
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I think the last serious discussion about the national debt here was on 11/04/2007. Started by LeatherneckPA and 31 posts. Most seemed to blow it off and then we all know what happened in December of that year.... Just saying......seems pretty eerie.
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Old 02-13-2019, 09:35 AM   #9
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I think this is a serious problem. At some point, the US prints money.

The issue isn't that our current debt is "too high", it's that we're adding $1 trillion per year during an economic boom.

But, having said that, I don't have a good way for retired people to protect themselves.
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Old 02-13-2019, 09:50 AM   #10
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The national has hit 22 trillion. Ouch. The next recession could be a doozy. Any worries.
Hush! Quiet!

Pay no attention to the man behind the curtain.
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Old 02-13-2019, 09:56 AM   #11
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Hush! Quiet!

Pay no attention to the man behind the curtain.
I don't think it's a matter of not paying attention. more of a question of worrying. In reality there is very little I can do about the national debt outside of voting.

As @dtbach said, I try hard not to stress over the things I have absolutely no control over.
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Old 02-13-2019, 10:03 AM   #12
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When I think about the "day of reckoning," I think about what happened to New York City back in the mid-1970s when the banks closed their windows and refused to lend the city any more money until the city cleaned up its act and got its fiscal house in order. That began several years of tough times for New York City and forced its leaders to enact some tough measures, breaking with their normal ways of doing things. Can that ever happen at the federal level?
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Old 02-13-2019, 11:23 AM   #13
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Worrying doesn’t accomplish anything. You can vote your opinion. You can assume economic headwinds going forward (such as somewhat lower GDP and higher interest rates/inflation) and adjust your investment plans accordingly.

I’m not interested in playing the survivalist prepper game.
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Old 02-13-2019, 11:32 AM   #14
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The national has hit 22 trillion. Ouch. The next recession could be a doozy. Any worries.
What does the national debt have to do with the dooziness of the next recession?
Or were you just combining two distinct thoughts into the same paragraph?
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Old 02-13-2019, 11:41 AM   #15
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Meh, It's only money
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Old 02-13-2019, 01:45 PM   #16
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What does the national debt have to do with the dooziness of the next recession?
Ask Greece what happened when they went too far into debt, and their debt/GDP ratio became too high!
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Old 02-13-2019, 01:52 PM   #17
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Ask Greece what happened when they went too far into debt, and their debt/GDP ratio became too high!

I would imagine they wished they had control of their own currency so that printing their way out of debt was an option - a situation we do not share.
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Old 02-13-2019, 01:53 PM   #18
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Ask Greece what happened when they went too far into debt, and their debt/GDP ratio became too high!
Do you really see an equivalence?
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Old 02-13-2019, 02:03 PM   #19
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I see a national sales tax in our future, maybe half-penny on the dollar. It will be a bitter pill initially, but will be transparent to most of us in short order.
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Old 02-13-2019, 02:05 PM   #20
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Do you really see an equivalence?
Not at the moment. Our current ratio is 104% In 2017, Greece was at 178%. With increasing interest rates, and continued government spending that outpaces income, our debt will continue to grow. The collapse point will likely come by the time the ratio hits 200% (my best guess), and we can no longer afford to pay the interest on the debt.
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