National debt tops 31 Trillion for the first time

Rich said:
I'm not so sure about that...
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It’s hard to know without comparing the debt of each nation to its GDP, population, etc…

No matter how we compare, reducing our debt and the cost to service it would put us on a stronger footing in the same way that we as individuals experience when we pay off our credit cards and reduce our consumer debt.
 

Aunt Bea said:
It’s hard to know without comparing the debt of each nation to its GDP, population, etc…

No matter how we compare, reducing our debt and the cost to service it would put us on a stronger footing in the same way that we as individuals experience when we pay off our credit cards and reduce our consumer debt.
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I think the country that poses the highest risk to us at this time is China. Their debt is less than half of ours.
"Debt-to-GDP ratios above 77% can hinder economic growth and (in some cases) place a country at risk of defaulting on its debts, which could wreak havoc on its economy and financial markets."
I'd love to be able to make a credible case that says this is okay. However, as we continue to add $2 trillion per year to the debt It's not only not okay, I suspect we are headed for an economic collapse. The thing is, no one in Washington is talking about a plan, they're only looking to the next "raise the debt limit" argument.
 

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I believe that inflation will skyrocket in 2025 for obvious reasons. I have ordered a year’s worth of paper products, toiletries, cleaning products, etc and 6 months of medications, coffee, etc and will also fill my small freezer with meat. If prices don’t increase no big deal but if they do I’m ahead for a while.
 

Teacher Terry said:
I believe that inflation will skyrocket in 2025 for obvious reasons. I have ordered a year’s worth of paper products, toiletries, cleaning products, etc and 6 months of medications, coffee, etc and will also fill my small freezer with meat. If prices don’t increase no big deal but if they do I’m ahead for a while.
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Are you buying your alloted Ibonds? They pay the inflation rate plus 1.2%.
 
Brookswood said:
Are you buying your alloted Ibonds? They pay the inflation rate plus 1.2%.
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Since you can only buy $15K in Series I bonds per year it takes a lot of years to invest in them significantly. Right now they're paying something like 3.11% which is not too exciting. I have far more than that in laddered CDs and even savings accounts that all pay far better rates of interest. Not to mention the net rate my 401(k) has earned YTD.

I bonds don't look to special to me. But I don't expect hyperinflation.
 
OneEyedDiva said:
Here's what I don't understand. When more stimulus checks were suggested during the pandemic, the response was it would be too expensive to send out more. Other pandemic related help for Americans was also cut short when people who were still out of work; facing a rise in rents and other costs obviously needed more. Yet, how many $billions worth of equipment and help have we sent to the Ukraine? A $40 billion package has been approved in addition to what was already sent.
What Does $40 Billion in Aid to Ukraine Buy?
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I have heard that that help has gone mostly in the form of equipment to be used in their defence. $40 billion in 'old' weaponry, missiles, etc., which means that the military industrial producers will now have to build more equipment to replace what was sent over which means jobs for workers which will still result in income taxes being paid, some (small amounts) of corporate taxes being paid to the government. So it's not a total loss. I've heard that on several political podcasts.

'.......Pursuant to a delegation by the President, we have used the emergency Presidential Drawdown Authority on 55 occasions since August 2021 to provide Ukraine military assistance totaling approximately $31.7 billion from DoD stockpiles.......'
https://www.state.gov/u-s-security-...ority (PDA),$31.7 billion from DoD stockpiles.
 
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dilettante said:
Since you can only buy $15K in Series I bonds per year it takes a lot of years to invest in them significantly. Right now they're paying something like 3.11% which is not too exciting. I have far more than that in laddered CDs and even savings accounts that all pay far better rates of interest. Not to mention the net rate my 401(k) has earned YTD.

I bonds don't look to special to me. But I don't expect hyperinflation.
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My understanding is that the Treasury has done away with the $5000 bond purchase using the tax refund. So the effective limit is $10,000. This is not good. They have made it harder to use Ibonds as an investment tool.

Having lived through the double digit inflation of the late 1970s and early 1980s, I hope you are correct about inflation. I remember 10%+ treasury bills, which were still below the inflation rate!!!!! And during this time the stock market got pummeled by a viscous Bear.

As far as the current rate on the Ibond, you are correct. It’s not that good.

If we see a rise in inflation to 5 or 6 percent, will the banks give us a high enough rate to break even after taxes? I don’t know. But, I view Ibonds as a long term purchase. And if inflation jumps again due to massive Federal deficit spending, getting 1.2% above the inflation rate is a good deal, IMO. At least the buyer has a fighting chance to stay even in real terms.

Also, ibonds are exempt from State and local taxes. Depending on where a person lives this might be a nice bonus.

Ibonds could be part of a collection of income produing investments. I would never recommend they be all or even the largest chunk of those investments.
 
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papa tiger said:
Basically everything is doubling in price every 4 years now.
Look to expect Doubling every 3 years soon.
It's just because of spending on total crap ideas.
Sure, that's a no-nonsense answer to stupidity!

It's so easy to spend majority taxpayers into absolute insolvency.
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Someone once said the Taxpayer majority will always allow us to spend more!
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Soon a $125,ooo F150 base priced offer.
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Doubling in 4 years would be an annual rate of 18%.

Doubling in 3 years woul;d be an annual rate of 24%.

Our current rate of inflation is 2.4%.

U.S. Inflation Rate by Year: 1929 to 2024

Our long term average is about 3% which would be a doubling every 24 years.

The Rule of 72: Definition, Usefulness, and How to Use It
 
Lumber Prices - 50 Year Historical Chart

Just 1 simple example. Then there is Toilet paper and Dog Treats. The gov fubbs on inflation. A new F150 $$$$$'s or a used one.
Heck the Government pays $$$$$$$$$$'s in over costs do to failed / flubbed / poor design or ideas. Check out the NASA budgets.
nasa budget charts over the years - Bing

https://ycharts.com/indicators/us_government_spending

Thats the inflation rate, not some flubbed lying crapolla. Go to any large town Vet for your beloved pet doggy checkup. Put extra into your checking account too cover it. Look at the real prices a Senior on a fixed low income has to meet. Call a Cab, Pay the Gratuities for a Cruise.
Buy a dozen hanger brackets for a 2x6. call the HVAC man or plumber. Replace the Furnace / AC. 1987 / $3500 ; 2017 / $12000

Home values rising near $15,000 a year in many places.

Minimum wage 1964; $1.25 ----- Minimum wage 2024 --- $10.69 -- 11.33 (13,000,000 responded to poll.)

shop for a Lb. of Bacon / mostly just fat! Buy a tough Porterhouse steak. $20 +. 1967 A thick 1 lb. steak, very tender $1.00
2024 --- $16 X, tough and ya spitting out balls of unswallowable gristle.
 

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