# US Debt Ceiling



## sags (May 15, 2010)

Yikes............our biggest trading partner is a debt junkie...........

9 Trillion.........12 Trillion.........14 Trillion............? Trillion..........

The US is out of control, and we are too reliant on them.

Time to cut the cord, and start looking around for some new best friends.

http://www.bloomberg.com/news/2011-...-u-s-debt-ceiling-would-be-catastrophic-.html


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## dogcom (May 23, 2009)

When we get stability in the Euro zone and they start to solve their problems then all eyes will turn to the US. Watch the long bond market and if it gets to high then look out.


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## fortunate_son (Jan 3, 2011)

*nHBN86*



jwsmith519 said:


> So long as the governments carry the debt and not me, then I'm happy.


Who do you think is paying the interest?


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## fortunate_son (Jan 3, 2011)

jwsmith519 said:


> Who do you think is printing money like it's junk mail?


Central banks, which aren't controlled by governments.



jwsmith519 said:


> So long as it's not my debt, then I don't care.


I still don't see your point; how is it not your debt? Your tax dollars are going to service the interest and (in surplus years) pay the principal.


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## dogcom (May 23, 2009)

Remember what it was like to have our taxes raised every year, cutbacks on government programs and the introduction of the GST and so on. All of this was because of our government debt in Canada in the 1990's so it was a concern.


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## kcowan (Jul 1, 2010)

My concern is that, when the central bank stops buying US Treasuries, who will?


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## I'm Howard (Oct 13, 2010)

The U.S MUST introduce a consumption tax and raies rates higher on High Income Earners.

The top 20% of Americans own 80% of the wealth, the bottom 20% own 0.01% of the wealth.


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## ddkay (Nov 20, 2010)

FLASH: House of Representatives votes down measure to raise debt ceiling without conditions


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## MoreMiles (Apr 20, 2011)

I'm Howard said:


> The U.S MUST introduce a consumption tax and raies rates higher on High Income Earners.
> 
> The top 20% of Americans own 80% of the wealth, the bottom 20% own 0.01% of the wealth.


The more you work to make money, the more you get penalized and labeled as a bad guy 

So everyone stays home to claim welfare and social assistance? Just like a communist?

I don't understand why if a person works harder to make more money, why should you penalize him with a higher marginal tax rate?! For example, Canadian tax system with marginal rate sucks.


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## Rico (Jan 27, 2011)

MoreMiles said:


> I don't understand why if a person works harder to make more money, why should you penalize him with a higher marginal tax rate?! For example, Canadian tax system with marginal rate sucks.


I chatted with my uncle about this issue many years ago (he was an accountant). One thought he had about it was that rich people tend to use the world up faster so they should pay more (bigger houses, higher quality food, fancy imported cars, more toys/goods in general, etc.). My uncle was quite well off so I respected him for saying that.


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## Beresford (May 30, 2011)

The debt level of USA is ever increasing and now it has reached 15 trillion dollar and increasing. About 14.3 billion dollar debt is adding in it with every passing day. I wonder how long the US economy will stay.......


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## financialnoob (Feb 26, 2011)

MoreMiles said:


> I don't understand why if a person works harder to make more money, why should you penalize him with a higher marginal tax rate?! For example, Canadian tax system with marginal rate sucks.


I'm Howard said consumption tax, not a higher marginal rate on income tax. Generally, the consumption tax wouldn't impact their earnings so they could work harder without being penalized as you say. Depending on the form, a consumption tax might even impact lower-income earners more.


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## Jeebs (Jun 1, 2011)

MoreMiles said:


> The more you work to make money, the more you get penalized and labeled as a bad guy
> 
> So everyone stays home to claim welfare and social assistance? Just like a communist?
> 
> I don't understand why if a person works harder to make more money, why should you penalize him with a higher marginal tax rate?! For example, Canadian tax system with marginal rate sucks.


I don't understand how you can assume that you work harder than someone who is poor. I'm sure there are some single mothers out there who put in hours you couldn't even dream of. Contrary to popular opinion, not all low-income people are welfare scabs.

As far as US debt goes, it will require a combination of reduced spending and increased revenues. Consumption taxes disproportionately affect low-income earners. They should be instituted, but balanced by an increased income-tax rate on high-wage earners. Tax expenditures such as tax-deductible mortgage interest for example should be closed.

Programs such such as social security, medicare and medicaid need to be on the table, but cuts should be fashioned as to minimize impact on those who rely on it. They could probably start by allowing medicare and medicaid to use their purchasing power to negotiate lower prices with pharmaceutical companies as well as increasing their ability to use lower priced generic drugs in place of high price brand name drugs. Americans on average pay far more for medication then citizens in other developed countries.

Tort reform could also be instituted to make it more palatable to conservatives.

It's called shared sacrifice. Reducing the deficit on the backs of the poor to fund tax cuts for the wealthiest Americans is a recipe for disaster.

Department of Defense is another place they could find serious savings.


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## sags (May 15, 2010)

I am waiting with interest, for Sarah Palin to unveil her economic solutions for the US debt crisis.


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## HaroldCrump (Jun 10, 2009)

sags said:


> I am waiting with interest, for Sarah Palin to unveil her economic solutions for the US debt crisis.


Given that she can see both Russia and Canada from her house, her plan is to invade and annex both.


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