US Debt Ceiling
Moderator: Moderators
Re: US Debt Ceiling
troll economics, how do they work?
Re: US Debt Ceiling
Because the pale blue bit falls, the rest does not and rises with inflation/interest.
To be precise, the pale blue component is the bail out. What people forget is that these bailouts are not one off expenditures, the government didnt spend the money, they lent it. This means the money will eventually be paid back.
Already billions have been paid back by many of the Banks originally bailed out, and for the UK government at least, a profit was made on the sale of shares originally bought to rescue the Lloyds banking group under the Gordon Brown Labour Government.
Of course all of this money has yet to be repaid ( but will be ), and there are ongoing bailouts across the globe, and further problems such as the sovereign debt bubble that arose from these bailouts.
The biggest issue, is the economic downturn, coupled with the reduced income of governments as a result. This tied in with the fact that we spent the proceeds of the boom years rather than saving them for the downturn ( though in the US's case, they didn't just spend the surplus of boom years, they kept borrowing anyway as if it were an everyday practice )
To be precise, the pale blue component is the bail out. What people forget is that these bailouts are not one off expenditures, the government didnt spend the money, they lent it. This means the money will eventually be paid back.
Already billions have been paid back by many of the Banks originally bailed out, and for the UK government at least, a profit was made on the sale of shares originally bought to rescue the Lloyds banking group under the Gordon Brown Labour Government.
Of course all of this money has yet to be repaid ( but will be ), and there are ongoing bailouts across the globe, and further problems such as the sovereign debt bubble that arose from these bailouts.
The biggest issue, is the economic downturn, coupled with the reduced income of governments as a result. This tied in with the fact that we spent the proceeds of the boom years rather than saving them for the downturn ( though in the US's case, they didn't just spend the surplus of boom years, they kept borrowing anyway as if it were an everyday practice )
Re: US Debt Ceiling
There is no economics, just monkies printing cash 24/7
