Current Events: U.S./Debt Crisis
I am interested in politics, and am watching events in the US with some trepidation. I cant understand the debt crisis, and none of the networks seem to do a good job explaining it.
I live in Canada and we went through our own debt crisis in the 90's, but of course no where in proportion to yours. I recall we got out of it by drasticly shrinking government, and paying down the debt.
Is this solution not applicable to the US? I can understand the republicans not being in favor of Obamacare, but cant other big spending cuts be made? What about the military? How will the gulf and afhghan veterans get a pension in the future? What about privatising a good portion of government services? We did that to our post office.
Also, as a westerner, I cant understand why so many Americans dont want to buy our oil through the keystone pipeline. Dont they know it will hook up with all the oil that is coming out of North Dakota? The Chinese are actively buying up lots of land and leases and they would love to have a pipeline to the coast for their oil tankers.
Thanks for your thoughts, I hope you guys pull through!
The debt of 17 trillion dollars means we have spent 17 trillion more than we have taken in. The democrats what to increase the debt so they can spend more on their various phoney-baloney programs. The republicans want to do what you did in Canada and lower the expenditures, thereby lowering the debt.
The secret is that we really have no intention of ever paying off the debt. What we will do is "service" that debt. You buy U.S. Treasury Bonds for $10,000, we will pay you your interest and principle when you cash those bonds in.
The government always has money coming in from taxes and the like, so there are always funds available. How quickly those funds are spent, and on what is affected by raising or not raising the debt limit. If the limit is not raised, then the country can't print anymore money, but it can still "service" the debt, and pay salaries of its current employees from the existing inflow of money.
In the sequester, the military had its budget cut by a trillion dollars, as did some of the numerous social programs that exits. The real problem is in those pensions you refer to. The estimated outstanding cost to of Social Security, Medicare, and Medicaid is over 100 Trillion dollars. Now that might be rather devastating when the bills come due (as in, we can't pay).
The only people who are against your oil are the environmentalist wackos and their buddy in the White House who are against the use of ANY fossil fuels, which is why they don't like "fracking." It releases that terrible carbon dioxide when it is used (burned).
Privatization won't work at the federal level because the democrats are pretty much owned by the unions. Public unions have their members donate to democratic candidates, and those unions would never let a private company take away those jobs (and union dues) - whether those jobs are teachers, postal employees, mechanics or airport security workers. For the unions (and the democrats) privatization is an obscene word.