Deficit VS Debt...

[smitty]

Deficit going down and the debt going up.  Hummm...   Why is the deficit going down?  It's not what you think...

 

http://www.safehaven.com/article/33226/why-is-the-federal-deficit-really-falling

http://www.usdebtclock.org/

[stevenash]

Big Girls friend ( Who has an MBA and better understand macroeconomics) isn't going to like this Smitty.

[Big girl]

You have been saying thAt the debt has been 17 trillion for the last eight mos. How is it going up. Please define debt and deficit. Tmobilehe debt in my household has increased becsuse I bought a new car, but our deficit is lower because we are making more money..

[Big girl]

The debt

[stevenash]

The debt can/does  go up based upon the interest that is compounding daily upon it.  Interest rates are lower than you(Big GIrl) have seen in your entire adult life.  When those rates begin to climb ( and that is getting closer) the interest on the debt will rise and hasten its ascent unless something is done to reduce it.

[Big girl]

We have fixed interest rates.

[stevenash]

I am not talking about your debt.  I am talking about the debt of the country.  Furthermore, I suspect that when you bought your car, you didn't already owe 108% of what you earn annually.

[stevenash]

Big Girl- The treasury just announced its intent to borrow 192 billion dollars in the third quarter to keep the government operating.  The projection now is that the country will be 20 trillion in debt by the time Mr. Obamas term is done.  Too late to blame Bush.  Can't blame the Tsunami or a video.  Guess who gets credit?  You got it- the same guy who "killed Bin Laden"

[Big girl]

_{what is the the name of the article?}

[stevenash]

No article- was on the television business news (CNBC)

[smitty]

No article- was on the television business news (CNBC)

Steve, since there is not any economic growth they have to keep printing money!!  Those that don't pay attention will not even realize it.  But, one day, they will.  You can't continue to debase your currency by printing tons of money and expect nothing to eventually happen.  Sure, in the short term those that are getting the money in the market are happy.  But...