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Posted by: ZiIch
Posted by: tedog
I can give you over 16.4 trillion reasons. Our debt is massive and impossible to pay back. It has increased exponentially and at the same time we constantly allow the Fed to pump in ghost money with quantitative easing. (They no longer print money, just add 0s onto bank accounts) This devalues every dollar and has interest attached. We can barely keep up with our interest payments alone, how can we ever expect to pay all of this back?
Just wait for the inflation to hit in two more years.
The numerical value of debt is irrelevant. People like you throw around big numbers and scary rhetoric like 'ghost money' to get a rise out of people.
Unfortunately, that poor level of argument is enough to convince a lot of sheep. If they only looked at the objective statements in your argument, they would see how full of -blam!- your claims are.
Our debt is not impossible to pay back. During WWII we had a higher debt/GDP ratio and we got it under control through growth. What we need is economic growth, which your prescriptions (I assume massive spending cuts) would make worse.
The dollar is not being devalued by QE. Inflation is at historically low levels.
We are not having trouble paying interest on our debt. Interest payments are a fraction of our overall government spending.
People like Ron Paul and Peter Schiff have been claiming inflation is coming for the last five years. It hasn't. It won't while we're still in a liquidity trap.
Do you understand how much a trillion is? Most don't. And the number itself isn't my sole indicator, it's the exponential growth of our debt.
We are STILL paying off debts from WWII, and we only borrowed $100 million. Our interest on that alone is now worth far more.
Because we won't feel the inflation for another two years, obviously. We are already seeing inflation with gas and bread, though, actually. It will only get a lot worse once it actually impacts the market.
The government won't be able to sustain interest payments alone by 2015 if they continue how they are.
Going to see The Hobbit, I will return later.
[Edited on 12.29.2012 12:16 PM PST]