Showing posts with label Debt. Show all posts
Showing posts with label Debt. Show all posts
Wednesday, April 20, 2011
Government - Debt Subject to Limit Graph
This link shows the current ceiling on the national debt as well as the level of the debt as of the previous day. When the green line touches the orange line interesting things will happen.
Monday, April 18, 2011
Debt: S&P Affirms US AAA Rating, Cuts Outlook to Negative - CNBC
EXCERPTS:
"Standard & Poor's on Monday downgraded the outlook for the United States to negative, saying it believes there's a risk U.S. policymakers may not reach agreement on how to address the country's long-term fiscal pressures.
"Because the U.S. has, relative to its 'AAA' peers, what we consider to be very large budget deficits and rising government indebtedness and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable," the agency said in a statement.
In an interview with CNBC, David Beers, S&P's global head of sovereign ratings, said the agency has been "struck increasingly by the difference in how other governments are dealing with fiscal consolidation."
"The U.S. to us looks to be an increasing outlier in that context," Beers added.
"Standard & Poor's on Monday downgraded the outlook for the United States to negative, saying it believes there's a risk U.S. policymakers may not reach agreement on how to address the country's long-term fiscal pressures.
"Because the U.S. has, relative to its 'AAA' peers, what we consider to be very large budget deficits and rising government indebtedness and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable," the agency said in a statement.
In an interview with CNBC, David Beers, S&P's global head of sovereign ratings, said the agency has been "struck increasingly by the difference in how other governments are dealing with fiscal consolidation."
"The U.S. to us looks to be an increasing outlier in that context," Beers added.
Saturday, May 8, 2010
Greek protesters: Ready to face reality about the debt crisis? - CSMonitor.com
I encourage you to read this entire article on the situation Greece has gotten itself into. Then, read it again but replace "Greece" with "United States."
EXCERPTS:
"Dear Angry Greek Protesters:
Screaming in the streets, waving banners, and tossing homemade explosive devices at the police do absolutely nothing to address the very real problem your country faces. That problem is that your country is not as wealthy as you would like it to be. Nor is it as wealthy as your government led you (and others) to believe it was.
In short, your economic pie is too small to satisfy all of your demands. Railing madly against this reality, however, does nothing to increase that pie’s size. Resources and wealth are produced neither by angry sloganeering nor by simplistic denials of the facts. Quite the contrary.
For decades your country has lived well beyond its means. Thirty years ago, your government’s debt-to-GDP ratio was 34.5 percent. Today that figure stands at 115 percent. In other words, for decades your government borrowed money to provide you with goods and services that you couldn’t afford.
Living on credit is fun while it lasts. But reason tells us that it cannot last forever. Now that the bills are coming due, you must somehow pay them. This requirement is unavoidable.
... Your only reasonable course of action, then, is to work harder, save more, and adopt wiser public policies that promote wealth creation. Chief among these policy changes is to reject the socialism that you have been infatuated with for too long now. You need greater respect for private property. You need entrepreneurship. You need competition. In short, you need free markets. Without these, you will never become more prosperous.
EXCERPTS:
"Dear Angry Greek Protesters:
Screaming in the streets, waving banners, and tossing homemade explosive devices at the police do absolutely nothing to address the very real problem your country faces. That problem is that your country is not as wealthy as you would like it to be. Nor is it as wealthy as your government led you (and others) to believe it was.
In short, your economic pie is too small to satisfy all of your demands. Railing madly against this reality, however, does nothing to increase that pie’s size. Resources and wealth are produced neither by angry sloganeering nor by simplistic denials of the facts. Quite the contrary.
For decades your country has lived well beyond its means. Thirty years ago, your government’s debt-to-GDP ratio was 34.5 percent. Today that figure stands at 115 percent. In other words, for decades your government borrowed money to provide you with goods and services that you couldn’t afford.
Living on credit is fun while it lasts. But reason tells us that it cannot last forever. Now that the bills are coming due, you must somehow pay them. This requirement is unavoidable.
... Your only reasonable course of action, then, is to work harder, save more, and adopt wiser public policies that promote wealth creation. Chief among these policy changes is to reject the socialism that you have been infatuated with for too long now. You need greater respect for private property. You need entrepreneurship. You need competition. In short, you need free markets. Without these, you will never become more prosperous.
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