America's Underwater: Debt Equals 103 Percent of GDP

By Terence P. Jeffrey
September 11, 2012

(CNSNews.com) - According to the most recent official estimate by the federal Bureau of Economic Analysis, the Gross Domestic Product for 2012 will be $15.6061 trillion--or about $440.5 billion less than the $16.0466 in debt that the federal government had accumulated as of the close of business on Monday.

In other words, the debt is now approximately 103 percent of GDP.

Read more: http://cnsnews.com/news/article/americas-underwater-debt-equals-103-percent-gdp

otisptoadwater wrote:

By Terence P. Jeffrey
September 11, 2012

(CNSNews.com) - According to the most recent official estimate by the federal Bureau of Economic Analysis, the Gross Domestic Product for 2012 will be $15.6061 trillion--or about $440.5 billion less than the $16.0466 in debt that the federal government had accumulated as of the close of business on Monday.

In other words, the debt is now approximately 103 percent of GDP.

Read more: http://cnsnews.com/news/article/americas-underwater-debt-equals-103-percent-gdp

At what point does it get bad enough that congress will agree on a bill that BOTH cuts spending AND raises revenue? A one dimensional approach will never do it....we can't cut enough to bring down the debt fast enough.....we absolutely have to increase revenue NOW, not wait till maybe, perhaps, possibly, the so called job creators the GOP wants to pander to with further tax cuts, decide for the first time that they might trickle down some money to the masses and create jobs at some undetermined future date.

archer wrote:

otisptoadwater wrote:

By Terence P. Jeffrey
September 11, 2012

(CNSNews.com) - According to the most recent official estimate by the federal Bureau of Economic Analysis, the Gross Domestic Product for 2012 will be $15.6061 trillion--or about $440.5 billion less than the $16.0466 in debt that the federal government had accumulated as of the close of business on Monday.

In other words, the debt is now approximately 103 percent of GDP.

Read more: http://cnsnews.com/news/article/americas-underwater-debt-equals-103-percent-gdp

At what point does it get bad enough that congress will agree on a bill that BOTH cuts spending AND raises revenue? A one dimensional approach will never do it....we can't cut enough to bring down the debt fast enough.....we absolutely have to increase revenue NOW, not wait till maybe, perhaps, possibly, the so called job creators the GOP wants to pander to with further tax cuts, decide for the first time that they might trickle down some money to the masses and create jobs at some undetermined future date.

Raising revenue is the problem. How do you do it? Tax increases on a select few don't necessarily increase $$ to the treasury. How much should the govt take from any one individual in taxes? 50%? 75%? 90%? 100%?

RenegadeCJ wrote:

archer wrote:

otisptoadwater wrote:

By Terence P. Jeffrey
September 11, 2012

(CNSNews.com) - According to the most recent official estimate by the federal Bureau of Economic Analysis, the Gross Domestic Product for 2012 will be $15.6061 trillion--or about $440.5 billion less than the $16.0466 in debt that the federal government had accumulated as of the close of business on Monday.

In other words, the debt is now approximately 103 percent of GDP.

Read more: http://cnsnews.com/news/article/americas-underwater-debt-equals-103-percent-gdp

At what point does it get bad enough that congress will agree on a bill that BOTH cuts spending AND raises revenue? A one dimensional approach will never do it....we can't cut enough to bring down the debt fast enough.....we absolutely have to increase revenue NOW, not wait till maybe, perhaps, possibly, the so called job creators the GOP wants to pander to with further tax cuts, decide for the first time that they might trickle down some money to the masses and create jobs at some undetermined future date.

Raising revenue is the problem. How do you do it? Tax increases on a select few don't necessarily increase $$ to the treasury. How much should the govt take from any one individual in taxes? 50%? 75%? 90%? 100%?

It's as simple as that... you can't tax away a 16 trillion dollar debt, it only goes away when the people are working, when the businesses can afford to hire. This country was not built by the government, it was ultimately built by the people who create revenue in the first place.

well - my mortgage is higher than my annual income, and nobody's declaring me bankrupt ----
so I'm not ready to pound my chest and cry "it's finished."

That said - it's certainly moving in the wrong direction --- and accumulation of additional debt is not in our best interest.

Step 1 is to slow and then eliminate deficit spending. (something no president has done in a decade)
Step 2 is to eliminate debt

well - my mortgage is higher than my annual income, and nobody's declaring me bankrupt ----

Well....
Let me be the first to subject you to reality- either you are working your butt off trying to change your situation, or like the USA, you are bankrupt.

Maybe not this month, but unless somthing changes in a big way- it's just a matter of time before you are sunk.

Same thing with America, unless we want our streets to look like Greece, there's no more time left to kick this can down the road.

If our government wants to spend 4 trillion dollars a year with only 1.3 trillion of revenue- we are already sunk. Lefties and conservatives alike should be advocating for massive cuts to government - since we are spending nearly 4 times what we collect.

Taxes at a time like this would only send us down even faster, stifle any wimper of growth, kill jobs and the scene of bankrupt businesses would increase rapidly. Even Clinton knows this- his warning in his speech at the DNC was clear. I actually think think Obama wishes for it, because the only answer he has is to raise taxes.

Massive cuts are needed, along with massive reductions in regulations and restrictions placed on business. A no-tax period would boost the economy. Place a tax moratorium on businesses who bring profits back to the USA from abroad for one year.

Unless this private economy is restored - we are screwed. I'm personally preparing for real bad times ahead very soon, because I have no confidence that our government - or the people will do what has to be done right now.

Half the country is on the government dole- and the other half are un-employed. Socialism has a firm footing and increasingly creeping in more and more.

Capital is on strike, has been for 4 years now. Those with resources to invest are holding their money- for good reason. You can complain all you want- but investors and businesses know better than to risk their hard earned money in this economy.

The job creators and producers of this country are laying low until the climate changes, and if it dosn't change in their favor, they will not invest. Period.

That's Right-wing talking-point drivel... not "reality"...But thanks for playing. Your hysteria is duly noted.

Since business profits are at a 50-year high, it would appear that "trickle-down" isn't....

bailey bud wrote: well - my mortgage is higher than my annual income, and nobody's declaring me bankrupt ----
so I'm not ready to pound my chest and cry "it's finished."

That said - it's certainly moving in the wrong direction --- and accumulation of additional debt is not in our best interest.

Step 1 is to slow and then eliminate deficit spending. (something no president has done in a decade)
Step 2 is to eliminate debt

Using your personal example, are you more concerned about your own situation than the people in Washington are about the debbt in this country? I'll bet you are because it's YOUR money. People in washington play with the future of all Americans and as long as they are getting a fat paycheck, the debt won't be keeping them up at night like your person debt probably does (or should).

bailey bud wrote: well - my mortgage is higher than my annual income, and nobody's declaring me bankrupt ----
so I'm not ready to pound my chest and cry "it's finished."

That said - it's certainly moving in the wrong direction --- and accumulation of additional debt is not in our best interest.

Step 1 is to slow and then eliminate deficit spending. (something no president has done in a decade)
Step 2 is to eliminate debt

Interesting analogy.I think it would be more spot on if each year your mortgage balance increased and debt service consumed more of your annual income.

Future annual variable interest payments on the debt is going to be what is important, and the actual number is ~70% of GDP for public-held debt. Social security trust fund debt is different, actually it's worse, both interest and principle need to be repaid. There is no plan to re-pay the public-held debt, its a growing interest only perpetual loan.