"As you know, we've inherited quite a budget crisis from President Trump. How bad is it, Milhouse?" "We're broke." "The United States is broke??? How can that be?!?!?!?!"

Doogie76 · 2019-03-27T04:56:06+00:00

The United States was broke long before Trump was the president. You're just good at hiding it

MGTOWrath · 2019-03-27T03:28:07+00:00

[deleted]

DangZagnut · 2019-03-27T03:17:21+00:00

We have quite a few presidents who have budget crisis.

But keep electing socialists and welfare spenders to congress, the only government body in the U.S. legally empowered to spend money.

Tonyb33 · 2019-03-27T04:13:58+00:00

The USA has a GDP of 20t and Treasury bond debt of 22t. The debt is currently rising by 1t a year. Currently the USA is paying 2%pa on its debt and it costs 16% of current taxation income. So with interest rates and spending constant within around 8-10 years interest on treasury bonds will equate to 25% of taxation income. Now realise that the bond debt is not the only debt the USA accounts on a cash basis so liabilities such as pensions, infrastructure and other long term commitments have to be paid for but currently are not counted.

Once this becomes self evident the interest demanded by the market will rise. So at 4% interest (which is low by long term standards) would consume half of all taxation income, and 8% (which is only 50% of the treasury bond rates charged in the 1980s) would consume 100% of all USA taxation income.

For the USA just to stop going further into debt government spending would have to fall by25% however bearing in mind some areas like interest cannot be reduced then the remaining area such as defence would have to be reduced by 50-75%

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