What is going on with this debt? What's going on in Washington?

[Fast_Eddie]

Originally Posted by piece-itpete

I thought the bank bailout was repaid.

And wars? So if Iraq is through and soon we'll be gone from Afghanny the budget will be balanced shortly.

Pete

Sure won't hurt anything.

[d-ray657]

Originally Posted by piece-itpete

I thought the bank bailout was repaid.

And wars? So if Iraq is through and soon we'll be gone from Afghanny the budget will be balanced shortly.

Pete

Debt based spending can be self perpetuating. Sometimes the debt is incurred on a spending spree (i.e., invasion of sovereign nation or a gift to pharmaceutical companies). Other times cash flow will require credit for necessities - like using a credit card for groceries or to go to the doctor (or a stimulus). At some point, the interest payments for past debt become a significant part of the budget. When you finance a couple of wars on a credit card, the bills keep coming after the war is over.

So many on the right have claimed that we can't point to tax breaks for the wealthy as a cause of the deficit, because we are merely letting people keep what is theirs. Those same people decry the "trillion dollar" stimulus plan, but fail to mention that half of it consisted of a tax break for middle class working folks. Hmmm.


Regards,

D-Ray

[piece-itpete]

Excellent examples D

Pete