National Debt

#2
#2
yes. About the ridiculous clock, no. About the actual debt, yes, to some limited degree.
 
#3
#3
BigPapaVol said:
yes. About the ridiculous clock, no. About the actual debt, yes, to some limited degree.
Click to expand...

I would like to get your opinion on the debt. Should we be concerned about it?

10.2 Trillion seems like a lot, but should we look at it as a percentage of the GDP to see how bad it really is? I really am wondering.
 
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#6
#6
rjd970 said:
I would like to get your opinion on the debt. Should we be concerned about it?

10.2 Trillion seems like a lot, but should we look at it as a percentage of the GDP to see how bad it really is? I really am wandering.
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Debt level always has to have some context.

You hear these idiots on TV talking about people that have 40,000 of CC debt, but don't think about the fact that the guy carrying it knocks down 400K per year and just uses the cards because they provide him benefits.

40K to the guy that brings home 50K is a problem.

I think the debt service burden is the key. To the extent that it stays relatively constant as a % of GDP we're probably cool. When it starts moving up because GDP is no longer climbing to support it, that's when spending has to be cut immediately. I'm not talking single year stuff either. I'm talking about 5 and 10 year trends.

As long as our economy continues to grow and gov't receipts increase, gov't debt is not a bad thing. Honestly, gov't paper is a huge standard in the financial world and is the basis for many decisions. Insurance companies also need gov't paper as investment vehicle to offset its projected long term payouts.
 
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