The US Debt Ceiling
A: Take a look at this historical graph on the US Debt Ceiling and tell me, what do you think Congress will do?
Courtesy of the Washington Post:
Sometimes all you need is a picture of some data! Clearly, the US government has a serious spending problem that needs to be addressed immediately.
Posted by David
Sun Jul 17th, 2011 09:34 AM
They're going to raise the ceiling but this is very bad. Our debt is unsustainable.
Posted by Ben
Sun Jul 17th, 2011 10:39 AM
What was the debt/debt ceiling, adjusted for inflation, during the 1930's? We are still fighting our way out of the recession, which requires large amounts of spending.
Posted by urbandigs
Sun Jul 17th, 2011 11:46 AM
David - exactly. unsustainable. and the cutbacks are going to be painful because we have got so used to spending our way out of the downtimes. the cutbacks will cause the next recession (s), who knows if its one more wave or a series of downturns over the next 5+ years.
Ben - true, but the actions taken so far has really not produced the results expected given the amount of spending we did and the amount of liquidity we threw into the system. If anything, it shows you can inject as much capital as you like, but where that liquidity it ends up is out of our control. How does the HY sector get hit after the runup seen there in the last 2+ years? Its unfortunate that the spending is not creating jobs, makes me wonder about the execution of all these bailouts. Then again, it was never a win-lose decision. It was a lose or lose more decision.
Posted by Fred
Sun Jul 17th, 2011 01:16 PM
This is an excellent graph. Clearly it shows that overspending, if nothing else, is bipartisan. And the huge run-up in the last couple of years is attributable to the one thing no one wants to talk about: war.
In the end a government is not a household and cannot really be held to identical economic standards. Nonetheless, what we have here is clearly dangerous. We belong to the Chinese, for all practical purposes. But if you cut the massive military spending of the last ten years out of the budget you have a document that looks very different. And while it is true that we have killed some major Al-Qaeda leaders, what have the wars done to ameliorate the lives of either the Iragi or the Afghanistani people? It's a tough question...
Posted by Buck
Wed Jul 20th, 2011 01:05 PM
Bring back Bill Clinton!! He might be a tom cat but he knows how to manage a country!
Posted by Georgia Stamison
Thu Jul 21st, 2011 05:17 PM
Well. I guess the USA will have to put asaid alot of expensive goals that they participate in. So will americans that buy computer games, ipods, cell phones and alot of elctronic gadgets. Both the government and people will have to start thinking in tuerms of the necessary insead of the extravagant ideas as expensive cars that run on computers, vacations in Mexico or the Caribean, etc. houses with high mortages and other stuff and nonsense and get back into a more simple and necessary world To much advertizing encourages young people and older to buy unnecessary items. The infrastructure comes first. Hospital needs, food programs are very necessary for a healthy nation. You turn your back on the essentials and you will have a nation filled with sick people and high costs. You are over commiting the government to unrealistic goals,both nationally and internationally. Only what is left should be used for these goals and the real healthy attitude is to be maintained. and those who want to take advantage in price atteneded to these basic goals should be eliminated of strongly controlled.
Posted by Dot, Michigan
Fri Jul 22nd, 2011 10:43 AM
I beg to differ on your "Party in Charge" key/info: The Democrats held the House, solid, from 1955-1995 when Gingrich came in, so that time should be Blue, not Pink/Red. The colors are switched for most of that whole line.