White House Seek Extra $80 Billion, Leading to New Record Deficit

Discussion in 'Politics, Religion, Social Issues' started by zimv20, Jan 25, 2005.

  1. zimv20 macrumors 601

    zimv20

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    #1
    link

    a budget deficit of $427 billion works out to roughly $1423 for every man, woman and child in the US. sheesh, that's just the _shortage_. anyone want to calcuate how much $1423, if put on a credit card today, will work out to in 2009?

    then multiply it by 300 million. cripes is this gonna hurt come winter.
     
  2. skunk macrumors G4

    skunk

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    #2
    How secure will SS be when the funds are all invested in a free-falling Stock Market? For that matter, what happens to government bonds when government goes bankrupt?
     
  3. Blue Velvet Moderator emeritus

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    #3
    Still, y'all can take some comfort from knowing that those gays won't be able to marry...
     
  4. skunk macrumors G4

    skunk

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  5. IJ Reilly macrumors P6

    IJ Reilly

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    #5
    Babkrupt? A word not found in Webster's Unabridged Dictionary.
     
  6. skunk macrumors G4

    skunk

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    #6
    Alternative spelling.


    :rolleyes:
     
  7. IJ Reilly macrumors P6

    IJ Reilly

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    #7
    Not in American English it isn't, so I am wondering about its etymology.
     
  8. skunk macrumors G4

    skunk

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  9. IJ Reilly macrumors P6

    IJ Reilly

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  10. skunk macrumors G4

    skunk

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    #10
    Look, it was a typo, OK? The "n" key happens to be next to the "b" and I missed. Sheesh, gimme a break, willya? :eek:
     
  11. skunk macrumors G4

    skunk

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    #11
    There, I've changed it.

    BTW, I refrained - with some difficulty - from drawing attention to your "Becuase he's hiding" thread title. Now you've forced me to. :p
     
  12. edesignuk Moderator emeritus

    edesignuk

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    #12
    aii, aii, the gammer/spelling police are out...

    I don't really understand much about economics, but surely this can't be good for the already weak dollar?
     
  13. skunk macrumors G4

    skunk

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    #13
    WTF is "gammer"? :D

    The "American Economy": now there's an oxymoron.
     
  14. edesignuk Moderator emeritus

    edesignuk

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    #14
    You got that quicker than I was expecting :p
     
  15. IJ Reilly macrumors P6

    IJ Reilly

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    #15
    You first. (As the board's self-appointed grammar and usage cop, I should hardly think you'd need a break, but the rest of us might appreciate one from time to time.)

    Funny part is, before I asked, I googled your spelling and found plenty of instances out on the 'net. So it was an honest question, not an effort to catch you. (Not that I would ever do such a thing.)
     
  16. Thomas Veil macrumors 68020

    Thomas Veil

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    #16
    *Ahem!* To return to the topic...

    This would've been so easy in the good old days, when the Dems had a majority to work with:

    "You know, George, you tell us you want another 80 billion dollars. I'm sure we can cut a deal. Now, about this Social Security privatization thing.... Oh yeah, and let's talk about your tax cuts...."
     
  17. skunk macrumors G4

    skunk

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    #17
    It's a fair cop. I'll come quietly, guv'nor.

    I'll get my coat...

    Amazing how many typos there are out there.
     
  18. IJ Reilly macrumors P6

    IJ Reilly

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    #18
    To quote my favorite philosopher, Groucho Marx: "Just when I tell you to go, you leave me!"
     
  19. miloblithe macrumors 68020

    miloblithe

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    #19
    Right now the overall US debt is at about 63% of GDP. As a point of reference, the EU requires that those countries that want(ed) to join the Euro commit to keeping their debt at 60% of GDP. France and Germany are right about there. Italy and Belgium are WAY over (100+%). Japan is well over 120%, and more or less screwed. China is at about 30%, and in excellent shape.

    Now, the other EU target is that in any given year, a country's budget deficit should not exceed 3% of its GDP. So, for the US, a roughly $11 trillion economy, a $427 billion deficit is 3.9%. Bad but not that bad. Keep in mind, the EU's economic growth rate is lower than the US'.

    And that's the thing. We all get freaked out about the fact that if you keep running budget deficits, your overall debt keeps growing, but this is not really true. If your economy grows at a faster rate than your debt, your debt is in fact shrinking (if the US debt was $1 trillion in 1980 and $1.1 trillion in 2000, obviously that would be a vast reduction in debt.)

    So, the key is that the deficit shouldn't be higher than the economic growth rate, or at least not for long and at least not often. The problem is that Bush's policies (and we all know the deficit isn't going to be cut in half by this administration) seem assured to push us up near or past 70%. Pretty poor showing for an administration that was handed 59%.

    As for the dollar, yes. In the long run, if we continue to run such high deficits, the dollar will remain low.

    (and no. I've never taken an economics class. But I did sleep in a Holiday Inn...)
     
  20. zimv20 thread starter macrumors 601

    zimv20

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    #20
    eh?
     
  21. miloblithe macrumors 68020

    miloblithe

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    #21
    Zim, I congratulate you on not being able to identify a bland reference to a commercial.

    ...I miss the days when the only TV I had was black and white, didn't really work, only got 1.5 of the three stations available, and, given the fact that I was in Siberia, didn't get broadcasts in a language I understood very well. In other words, I miss not watching TV.
     
  22. kerb macrumors regular

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    #22
    disgusting.

    anyone have figures on US gov contribution to the AIDS crisis in Africa?
     
  23. OutThere macrumors 603

    OutThere

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    #23
    Good for Brits and other Europeans who want to go to the U.s and buy things...cheap cheap cheap! :rolleyes:
     
  24. miloblithe macrumors 68020

    miloblithe

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    #24
    That's the whole idea. Europeans buying more US products, and Americans buying fewer European products because of the exchange rate will help reduce the US imbalance of trade.
     
  25. IJ Reilly macrumors P6

    IJ Reilly

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    #25
    ... any benefits of which will be wiped out by the higher cost of imported oil, increases in inflation and rising interest rates. Don't be shocked if the trade deficit doesn't decrease at all, even with a plummeting dollar.
     

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