EVERYONE is in a DEBT

[TheBramble]

Confusing GDP with debt? Debt-to-GDP is a ratio of significant importance. Unless you can fill in some gaps in my knowledge which shows otherwise, GDP is ALL you have to pay the bills. If your debt is more than your GDP and growing and your GDP is static or shrinking or even simply not growing as fast as your debt, there is a problem.

 

[Splitlink]

Governments hold bond auctions. They owe out on the bonds.

They must have Visas, too.

 

[BeginnerJoe]

Confusing GDP with debt? Debt-to-GDP is a ratio of significant importance. Unless you can fill in some gaps in my knowledge which shows otherwise, GDP is ALL you have to pay the bills. If your debt is more than your GDP and growing and your GDP is static or shrinking or even simply not growing as fast as your debt, there is a problem.

If the debt is greater than the GDP, all you have to do is to stop the wars. The art of war clearly stated many thousands of years ago that no nation has ever benefited from prolonged warfare.

 

[andycon]

If the debt is greater than the GDP, all you have to do is to stop the wars. The art of war clearly stated many thousands of years ago that no nation has ever benefited from prolonged warfare.

I'll send Obama an e-mail

 

[scose-no-doubt]

GDP is sum of localised outputs isn't it. GDP isn't big Dave's income - he just gets tax, roi and whatever eu money innit?

 

[BigInTheCity]

All money is debt, if all the debts in the world was paid off, there would be no money in circulation.

Watch 'money as debt' on google video or youtube, explains it all perfectly in 40mins.

Or if you have a spare 3 hours on your hands, watch 'moneymasters'

 

[TheBramble]

GDP is sum of localised outputs isn't it. GDP isn't big Dave's income - he just gets tax, roi and whatever eu money innit?

Uh? Regardless of whether you choose income or expenditure as a base for calculating it (it should come out the same either way) you take imports, exports, government spending, consumption, gross investment etc to calculate GDP. It's not just the sum of localised outputs.

 

[TheBramble]

Budget for the US for the month of August 2011

Bills
“must pays – commercial” to maintain current credit rating
Interest on debt $29
Social Security $49
Medicare $50
Veterans $3

Sub-total $141

“should pays – moral” to avoid rioting, civil unrest and possible revolution
Defence, tax refunds, food stamps, unemployment benefit, justice, education, housing allowance and federal payroll

Sub-total $165

Total Expenditure $306

Total Income $173

Shortfall $133

OK, so this isn’t a household budget because it’s in $Billions, but apart from the scale, there’s no difference. The monthly shortfall is almost 77% of income. They can either cut back the outgoings and/or, like all good households in this situation, get a second job, and/or sell some of their stuff.

Cutting back the outgoings is painful, but doable. But ultimately won't amount to much in terms of savings.

Getting a second job. There is no immediate equivalent facility as they don't even currently have a day job.

Selling some stuff. This is the way to go. Material, intellectual, information, infrastructure, property, land, arms - anything that isn't bolted down (too tightly) should be considered a saleable commodity.

Look out the the USA Garage Sale on ebay soon.

 

[n9077911]

Pension funds, insurance companies, banks, investment funds or anyone else that might hold a government bond. Foreign sovereign wealth funds will off course hold some of the debt, china, oil rich nations. And also the nations in debt themselves who over the years have lent/borrowed from each other.

The below has a simple breakdown of UK debt
http://news.bbc.co.uk/1/hi/business/8530150.stm

 

[scose-no-doubt]

Uh? Regardless of whether you choose income or expenditure as a base for calculating it (it should come out the same either way) you take imports, exports, government spending, consumption, gross investment etc to calculate GDP. It's not just the sum of localised outputs.

I know what GDP is what I was getting at is that GDP is not government income.