Economic Question

[blix177]

With a record rising national debt for the next few years, who would gain from this? Considering this as a Zero Sum question, if Americans lose out with rising national debt, someone should again, so who would that be?

[Tree Rollins]

I hope it's me.

[MonkeyF0cker]

The Chinese.

[pico]

bankers. they get paid in commission

[THE PROFIT]

All booms go bust, all great empires fall, etc..etc...90% of the economic problems in america is due to the housing bubble. Banks loaning money to everybody. We are in a recession now but when the U.S. hurts everyone hurts. I don't think this is a cause & effect situation to affect another country. The thing I see is this country is very young & we haven't gotten economics figured out completely yet, or democracy for that matter, that works correctly in all situations.

[iceminers26]

China

China will practically own the U.S. within the next 7 to 10 years from the debt we racked up and will be the world's #1 super power.

[blix177]

I doubt China or any country will own US. After awhile they just don't want to buy our debt. Which would translate to higher interest rates and higher tax.

[denn333]

How much higher a tax

[pico]

How much higher a tax

60%

would you feel better if all the poor people in american are taken care of and everyone gets free education including the illegal mexicans? plus universal health care

[stevek173]

Dooman

[13th Inning]

The Chinese and Jews are in the drivers' seat.

Imagine being a Chinese Jew in this day and age. That'll be better than a Powerball ticket in a few years.

[alukk]

Europe

[scarp]

we owe a lot to china, but they are also suffering from the recesion. I dont think we will ever be debt free. Its how we've always been

[urge2kill]

Less than 1/3 of our national debt is held by foreigners.

[MartinBlank]

We have been in this spot before----in the 1980's-----Reagan cut tax rates but didn't cut spending and our deficits soared to what was at that time---record deficits---back then, the republicans told us "deficits don't matter"-----and there was constant chatter about the Japanese owning American at the time.

Here we are 25 years later, the Dems are in charge now, and deficits are soaring again. Nowadays, the GOP is telling us the deficits will bankrupt our children, and the Dems are pretending this is 1984 all over again.

This recession is a global recession, so we are at no risk of being "owned" by any country----the Chinese bought a substantial portion of our debt, but their economy is shaky at best, in fact, many economists think they are cooking their books and they may be on the brink of going belly up as well.

[l7ustin]

plus they dont take care of their citizens...they have a lot of problems of their own...India and China seem to be gaining in power though

[dooman14]

ya dooman

[l7ustin]

its not europe, the dollar has been raising against the euro lately...and against the yen...obama said he would balance the budget before he left office...

[big0mar]

The Chinese buying our debt is a good thing. Proves that there is no better investment in the world than the American dollar.

And the US benefits just as much from the debt as anyone.

[pico]

its not europe, the dollar has been raising against the euro lately...and against the yen...obama said he would balance the budget before he left office...

where did you get that info

[iceminers26]

its not europe, the dollar has been raising against the euro lately...and against the yen...obama said he would balance the budget before he left office...

I really wish he would stop talking and actually follow through with some of these promises

[pico]

The Chinese buying our debt is a good thing. Proves that there is no better investment in the world than the American dollar.

And the US benefits just as much from the debt as anyone.

if china doesn;t buy more debt, existing debts will become worthless. they have no choice but to participate in the ponzi scheme.

[blix177]

I think the main reason why China or Japan both of which owns 800billion and 700billion US debt respectively buys our debt is to put downward pressure on their own currency, so it would be easier for them to export their goods to US.

Over the next decade we are going to borrow additional $9.3 trillion dollars. At that rate I am sure China, Japan, Europe, can't afford to buy that much US debt. At one point they will stop buying at the current given price and we will have to pay higher interest on the debt to find buyers. By 2020 US will be owing in the neighborhood of $20 trillion dollars. At 5% interest rate we will have to pay $1 trillion annually in interest.

What does $1 trillion dollar annual interest mean?
-Each year $3333 dollar per every man, women and child is spent on interest.
-Our bank bailout was $700 billion and get money back in the future when we sell assets we brought during the bailout. 1 trillion dollars is the equivilent of doing annual bank bail out with change.

As of 2009 we brought in "Estimated receipts for fiscal year 2009 are $2.7 trillion", and had a mandatory spending (medicare, social security, national debt interest payment, unemployment.) of $1.89 trillion. You add one trillion in national debt shit just don't add up.

I hope my math is wrong because shit looks pretty bleak.

[gimme2dollars]

All of these trillions mean nothing. There isn't anything to back it up. When Obama started spending money he just cranked up the printing presses.

[blix177]

Interesting read:

The 2010 Budget proposed by President Barack Obama projects significant debt increases.[10][11] The debt is projected to nearly double to $20 trillion by 2015, but is expected to increase to nearly 100% of GDP by 2010 and remain at that level thereafter. These estimates assume real GDP growth (after inflation) ranging from 2.6% to 4.6% annually from 2010 through 2019, which exceeds Blue Chip consensus estimates.[12]
The high level of debt and continuing large trade deficits have raised concerns regarding inflation and the value of the dollar relative to other currencies, as well as its place as the primary reserve currency. The Economist wrote in May 2009: "Having spent a fortune bailing out their banks, Western governments will have to pay a price in terms of higher taxes to meet the interest on that debt. In the case of countries (like Britain and America) that have trade as well as budget deficits, those higher taxes will be needed to meet the claims of foreign creditors. Given the political implications of such austerity, the temptation will be to default by stealth, by letting their currencies depreciate. Investors are increasingly alive to this danger..."[13]

[mathdotcom]

it is not zero sum

everyone is going to lose

since China is so popular, consider this: a stifled american economy is going to hurt chinese exports

[l7ustin]

us treasury should start fading langs picks and using profits to pay off debt

[pico]

bigger bubble building.