Nick87
Well-known member
Yah.... there paycheck from the government is where they make all that money. I doubt there salary amounts to much in terms of there net worth.
U.S. Debt Ceiling. 31.4 Trillion!
- Thread starter Sytes
- Start date
antelopedundee
Well-known member
Might there come a time when nobody will want to buy/own our debt?
SAJ-99
Well-known member
Never say never, but no. Not something you have to worry about in your lifetime.
antelopedundee
Well-known member
I'm 75 so my lifetime is pretty iffy.
SAJ-99
Well-known member
I figure we are good for the next 50yrs even if trends continue. Yesterday's 10yr auction of $40B, went 68% to foreign buyers. That is well above average and shows that at the right yield, there is plenty of demand.
I suspect that with all the talk of entitlement reform, someone will re-float the idea of investing SS funds in something other than US treasuries. Given SS holds about 20% of US debt, that could cause demand for US debt to drop. I hope someone is in charge that can understand that. This is why you can never say never.
antelopedundee
Well-known member
Is SS debt the only debt that is actually repaid? When payouts are more than intake from payroll deduction and other obligations then the Government has to cough up some of what they borrowed in order to make up the shortfall. Congress needs to get off of their asses and fix it instead of kicking the can down the road. The sooner they start the smaller the increase increments will need to be.
SAJ-99
Well-known member
If debt keeps rising, you could argue none of it gets repaid.
Congress will address it when Americans demand it and are willing to make the sacrifices necessary to get the budget under control. Not holding my breath.
"Moody’s has lowered its outlook on the US’s credit rating to “negative” from “stable”, pointing to a sharp rise in debt servicing costs and “entrenched political polarisation”."
www.ft.com
Moody’s lowers outlook on US debt to ‘negative’
Rating agency says move reflects drastic rise in Treasury yields and ‘political divisions’
SAJ-99
Well-known member
Moody’s playing catch-up because they other agencies already downgraded. Looks like people like those higher yields. Add to the table below that the TLT (long duration treasuries) has seen $20b in inflows. Have to remember, one person’s expense is another person’s income."Moody’s has lowered its outlook on the US’s credit rating to “negative” from “stable”, pointing to a sharp rise in debt servicing costs and “entrenched political polarisation”."
Moody’s lowers outlook on US debt to ‘negative’
Rating agency says move reflects drastic rise in Treasury yields and ‘political divisions’
noharleyyet
Well-known member
Trickle up...
SAJ-99
Well-known member
Paradox of thrift.
~1T a year in interest payment and more debt being refinanced at today’s rates instead of the historic low rates a few years ago.
All is fine until you fall off the cliff. It’s coming, only a matter time. Will be catastrophic when it does.
All is fine until you fall off the cliff. It’s coming, only a matter time. Will be catastrophic when it does.
SAJ-99
Well-known member
How do you suggest we prepare for that?
BigHornRam
Well-known member
Learn how to garden and can food. Prepare = prepper. You can do it SAJ-99. I know you can!
SAJ-99
Well-known member
Not to brag, but i have a bit of green thumb. I can grow some tomatoes.Learn how to garden and can food. Prepare = prepper. You can do it SAJ-99. I know you can!
Similar threads
- YourRoyalHighness
- Sportsmen Issues
