The Inhabitant Debt is currently at 12.5 trillion dollars, and rising by the following. Now, it doesn’t look like that money will be paid off anytime soon. It is the result of years of massive services and social spending, predominantly. Under Reagan, the Inhabitant Debt rose substantially due to the ridiculous services buildup that the government oversaw, along with massive overall government expansion, and during his presidency, the US went from being the largest creditor nation on earth to the largest debtor nation. So my question is how do we take care of this problem?
China has already told us that in indirect terms.
There are already grumblings about our debt from foreign countries. Small known fact that last quarter China in fact reduced their net holdings of U.S. Treasuries, the first time that has happened. That now makes Japan the largest foreign holder of U.S. debt and the fourth largest creditor behind the Federal Set aside, Social Security Trust and Medicare Trust.
Just like ancient times during ww2. There’s gonna be ww3.
I’m just being realistic.
i have to bring in more then i spend. same with the fed. raise taxes.
China will stop lending us money the day AFTER we stop buying cheap Chinese imports at Walmart.
So as long as you keep banrupting yourself buying Chinese junk at the largest employer in the USA, the government can keep digging our grandchildren deeper and deeper into debt with no limit.
Reckon about it – China is just lending our own money back to us that we paid for the last shipload of cheap Chinese imports. Then we can borrow that same money and pay for the next shipload. One shipload at a time, we keep circulating the same money around and around again.
And every time, we owe China more and more and more. It’s not China’s money, they just keep handing our own money back to us and surveillance us slap ourselves across the head with it. China has nothing to lose. They just sit there surveillance us dig ourselves deeper and deeper into a hole, like we’re stupid or a touch.
Possibly we are.
EDIT: You seem baffled about the meaning of “creditor” and “debtor” nation.
The federal budget nearly ALWAYS runs a deficit. We have ALWAYS had a inhabitant debt. Consult your World Almanac.
We were a creditor nation from 1914 to 1988. This is referring to our “current account” balance, not the inhabitant debt. The current account is the total lending and borrowing by the entire economy, including the private sector.
The current account balance is closely related to our cumulative foreign trade balance. We had a trade deficit from the colonial days up to 1880. We were an exporter, that is we had a trade surplus from 1880 to 1980.
Our trade surplus brought our current account balance from debtor status to creditor status in 1914. As long as we maintained a trade surplus, we continued to be a creditor nation.
We started our persistent trade deficit in 1980, the Carter years. This was due to the rise in foreign competition, coupled with tenacious resistance to tariffs in the USA because of the Smoot-Hawley bogeyman. The trade deficit completely consumed our current account and turned us back into a debtor nation in 1988, because of the trade deficit that started in the Carter years.
But this debtor nation status was related to the private sector borrowing to sustain our exponentially growing trade deficit. Government spending has no direct effect on the current account balance.
Quit giving charity to huge business. Let them pay the same tax percent that the middle class does. It worked under the Clinton administration.
The material will hit the fan when inflation starts to sky rocket. No country wants money that isn’t worth very much on the world market. We use to back up our paper money with silver and gold but we didn’t have enough of either in the 1930s to bank roll all of the democrats welfare programs. That’s when the government really started printing money that had no backing. A dollar was as excellent as gold at one time.
the more vital question is, what will you and I do before we get to that point ?
After all, we all know that the debt has been run up due to politicians and their pork projects, thier special interest pay offs, small excursions to vacation spots. Pelosi wasted $2 million shuttling her family around on services jets, Waxman spend $2200 a day while living large in Copenhaugen, and the spending for all these frauds and losers goes on and on.
Special flights, special cars, special rules where you or I would be fined or thrown in jail.
The corruption must stop, because I know I don’t work to give these bone idle bastards an simple life. Sure, there may be spending on vital equipment, I’d presume, or at least hope that the majority of the money goes to that, but we all know there’s descretionary funds and money floating all over the place that these politicians have access to without much oversight. They dissipate the money on what they want and not for what is excellent for America. Its time we chopped off thier hands to stop them from dipping into the tills.
Government ran up this debt, Government needs to get us out of it, and without penalizing the American citizen with extra fee’s, taxes and scam socialism
They are already and have been dictating the terms if Obama wants them to keep buying our stocks and bonds.
Foreign countries are not buying the debt in some offers and there have been some sales that no one bought anything lately.
Although China officially reduced its U.S. debt,it is believed that a Chineese agency secretly bought more debt through banks they own or control in other countries.
China doesn’t have to say a thing because their actions speak volumes. China has made investments and agreements with numerous South American and some African nations. They are at a snail’s pace shifting away from the US and hedging their investments here with ones in other nations. China and the few other nations that lend to us are kind of spellbound at the moment. A pull out would collapse our government and cripple their own countries. So they will continue to lend until pulling out of the US would only place them in a slight recession.
It will never get to the point where they will pull out. We will decipher the problem by at a snail’s pace inflating our currency and building it worth less so the debt is simple to pay off. The debt will be cleared but our dollar will be like the mexican peso, disrespected and worth a tenth of today’s value. Most americans will be forced to work till death because their retirement funds will be wiped out.