General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forumsroamer65
(36,747 posts)doc03
(35,361 posts)that is insane. I bet that $1.4 trillion turns out to be at least double what they say.
roamer65
(36,747 posts)Deficits are going to be high the next few years...really high. I suspect in the range of $2T a year.
Igel
(35,337 posts)We can only talk about $1.4 trillion, though, because most of the $12 trillion was projected based on nothing that the current administration would be doing.
It also assumes no recession. From 2010 to 2027. That would be amazing.
doc03
(35,361 posts)if we have a recession or another war who knows where it goes.
KWR65
(1,098 posts)Too bad for the 1% that are holding all those bonds.
roamer65
(36,747 posts)Then all those with dollar denominated assets would pay for it, including many middle class people who have US govt bonds in their 401ks.
ProfessorGAC
(65,134 posts)Any external lenders (for example, China) knew they were NEVER getting the money back
They just wanted the interest.
But, for them, their economies are so linked to the dollar, that such "zero interest" move puts them in a position where there are zero options
They won't participate in a dollar sinking sell because it would implode their own economies!
Until now, conservative economists haven't figured that out. (No surprise, since they're not the brightest crowd)
If they do, it becomes plan A and while there's nothing the creditors can do, foreign policy gets flushed.
KWR65
(1,098 posts)Just like in 2008 people lost their money playing the stock market.
A HERETIC I AM
(24,376 posts)Its bit just the 1% that hold those bonds. Its almost every single central bank in the world as well as the Social Security trust fund.
Defaulting on Treasury debt would cause an international economic crisis to make 2008 look like a cakewalk
KWR65
(1,098 posts)I'm not responsible for other peoples bad investments.
LuckyCharms
(17,454 posts)gulliver
(13,186 posts)Our debt is someone else's secure savings, including the Social Security Fund's. Republicans are the main source of bad debt. They used hidden debt, for example, to finance their Iraq War debacle. Huge mistake. We went into debt to pay for self-destructive actions.