The View

[EnlightenedChosenOne]

It depends on the cost of debt Stevenash.


BOOM BOOM POW POW ROASTED!!!


Come on now, you're supposed to be a professional cold caller/financial advisor man!! I'm disappointed in you.

[smitty]

If it is 17 million ok, but the deficit, which is decreasing, is more important. :).

Interesting.  17 trillion is what they want to talk about.  But, it's actually over 100 trillion dollars in unfunded government liability.  So, we would be interested in learning why you think the deficit is more important than the debt.  Educate us...

[stevenash]

Sorry ECO< but a debt level of 100.8% of GDP is unacceptable at any cost, Wheninterest rates begin their ascent from this govt engineered low rate environment, the situation will worsen

[EnlightenedChosenOne]

I wasn't referring to the US debt to GDP amount, I was referring to the $100,000 income example

Sorry ECO< but a debt level of 100.8% of GDP is unacceptable at any cost, Wheninterest rates begin their ascent from this govt engineered low rate environment, the situation will worsen

[stevenash]

Doesnt matter if it is an individual or a country. Debt levels in excess of 100% is unacceptable. if a guy makes 100,000 and owes 100,800 he cant get any more credit because lending to him is imprudent. The difference is that the government simply wtites itself a check.

[EnlightenedChosenOne]

You're wrong.

I'll keep it simple for you commoners. If someone has $108,000 in debt at a 1% fixed interest rate why would he rush to pay it off? It's essentially free money. Lenders lose money to inflation which is why they usually charge a premium.

Think about it. Assume you lived in Zimbabwe during their hyper inflationary period and had debt. Would you pay that off immediately? No.

Of course, if you're talking about the average American then you're right. The average American is an idiot.

Doesnt matter if it is an individual or a country. Debt levels in excess of 100% is unacceptable. if a guy makes 100,000 and owes 100,800 he cant get any more credit because lending to him is imprudent. The difference is that the government simply wtites itself a check.

[Big girl]

If my household debt is 4000 mo and I buy a car and my debt increases to 4800 but i have a monthly salary of 5000 I am in big trouble,. My husband then gets a raise and our income is now 12000 mo then that is great. Our debt increased, but our deficit decreased dramatically. (Hypothetical situation)