[Rainger99]

Interesting article on global debt.

The world is sitting on a $91 trillion problem. ‘Hard choices’ are coming | CNN Business

The most disturbing language is that “Tackling America’s debt problem will require either tax hikes or cuts to benefits, such as social security and health insurance programs.”

The good news is that we may have another 25-30 years before the world economy collapses.

I am glad that I am not graduating high school this year.

Any comments or suggestions from any economists or financial experts? Is it as dire as predicted? Or does it exaggerate the problem?What are the solutions?

[Two Bills]

Income $10. Outgoings $9. = Happiness.

Income $10. Outgoings $11 = Penury.

Simple.

[golfing eagles]

At what point does debt become unsustainable?

Ask the Greeks.

[retiredguy123]

Originally Posted by golfing eagles

At what point does debt become unsustainable?

Ask the Greeks.

Correct. But, the Greek debt could be bailed out by other countries. Our debt is too large to be bailed out by anyone.

[Papa_lecki]

Originally Posted by Rainger99

The most disturbing language is that “Tackling America’s debt problem will require either tax hikes or cuts to benefits, such as social security and health insurance programs.”

I am pretty sure there are plenty of other places in the federal budget to cut than SS and health insurance. There are a lot of government departments and programs to look at first.
Maybe slow down on foreign aid?

[Rainger99]

Originally Posted by Two Bills

Income $10. Outgoings $9. = Happiness.

Income $10. Outgoings $11 = Penury.

Simple.

One of my favorite quotes! Although my wife is tired of me quoting it.

[ThirdOfFive]

Originally Posted by retiredguy123

Correct. But, the Greek debt could be bailed out by other countries. Our debt is too large to be bailed out by anyone.

I agree that nobody is going to bail us out as a country. But there is another aspect of this that seems troubling. We are The United STATES of America. Media always emphasizes the doom-and-gloom aspects of everything, so we automatically have to wonder if what we're hearing is the truth, but we're hearing more and more about this-or-that large northern city or coastal state spending themselves to the verge of bankruptcy.

So...who bails out said cities or states when they DO eventually tumble off that particular precipice?

[retiredguy123]

Originally Posted by ThirdOfFive

I agree that nobody is going to bail us out as a country. But there is another aspect of this that seems troubling. We are The United STATES of America. Media always emphasizes the doom-and-gloom aspects of everything, so we automatically have to wonder if what we're hearing is the truth, but we're hearing more and more about this-or-that large northern city or coastal state spending themselves to the verge of bankruptcy.

So...who bails out said cities or states when they DO eventually tumble off that particular precipice?

I thought that already happened in Detroit and Stockton. I just assumed that the Federal Government is bailing them out, but they don't want the public to know about it.

[dewilson58]

No need to pay it back.

30% of US debt is held overseas............if it's not paid back......the countries will survive. They are holding the debt..........it's really not "in the system".

Another ~30% is held by "US government". SSA, Federal Reserve, Retirement Agencies. Just "print money" when & if the funds are needed if the agency can not redefine.

The last ~40% is held by US individuals and institutions. As individuals die, right off the debt.....no passing to next generation. For institutions, write off 10% per year.

Flush the toilet.

[Stu from NYC]

We are getting closer and closer to disaster. Interest on the debt is getting unsustainable.

[CoachKandSportsguy]

Originally Posted by Rainger99

Interesting article on global debt.

Any comments or suggestions from any economists or financial experts? Is it as dire as predicted? Or does it exaggerate the problem?What are the solutions?

neither a financial expert, nor an economist, just another poster with opinions who posts.

As long as the country can afford the interest payment, and can refinance/ rollover the principal, all its good. . remember that the US government is not the same as a commercial / private lender. that being said, as long as the USD is strong, money will keep flowing in from international lenders to the US GOVT. . its not all about the US citizens buying the US GOVT debt. However, if the US economy starts to tank in big terms, and the treasury funding is having a hard time selling the debt at the same or lower interest rate, then there will be a problem.

The key is to keep inflation low, which favors saving vs buying because prices are constantly increasing quickly. . and keeping the better economy amongst all the others, doesn't have to be great, just better than the alternatives.

When a bear attacks, you don't have to be the fastest runner, just not the last/slowest runner. . ie, better to panic early and be skeptical than oblivious. .

[PugMom]

ever since i began paying attention to politics in my 20's, i've always heard the warnings on national debt. it never seems to get better, only much worse. will it ever end?

[PugMom]

Originally Posted by retiredguy123

Correct. But, the Greek debt could be bailed out by other countries. Our debt is too large to be bailed out by anyone.

i bet the Saudis could do it

[PugMom]

Originally Posted by ThirdOfFive

I agree that nobody is going to bail us out as a country. But there is another aspect of this that seems troubling. We are The United STATES of America. Media always emphasizes the doom-and-gloom aspects of everything, so we automatically have to wonder if what we're hearing is the truth, but we're hearing more and more about this-or-that large northern city or coastal state spending themselves to the verge of bankruptcy.

So...who bails out said cities or states when they DO eventually tumble off that particular precipice?

who else? we the taxpayers

[ThirdOfFive]

Originally Posted by PugMom

who else? we the taxpayers

Scary. Especially to those of us for whom one of the reasons for moving here was to escape those cities/states spending themselves into oblivion.

A taxpayer bailout only encourages more of the same.