Deficit must be dealt with

We must pay off the deficit but don't touch social programs like 108 billion for students loans.

Originally posted by whodey
And a "free" retirement.

And "free" welfare.

And a "free" Obamaphone.

And a "free"....................................

From a Progressive point of view, balancing a budget is not only impossible providing all of these "free" things, it is a moral responsibility cuz they are all natural rights that should be provided by Big Brother.

Free money since they want to forgive debts too for people who took out student loans.
Just give everyone everything and be done with it. 🙁

OK, for those claiming to understand economics and wanting the debt to be paid off. Assume that the amount held by foreign parties is $6 trillion. One complaint expressed is that you are paying out interest payments to foreigners (which the xenophobic types can't stand).
Now your options are:
1. Keep paying interest.
2. Default and ruin your economy.
3. Pay the full $6 trillion back.
Lets suppose you are suggesting 3.
Surely that is still paying to foreigners, something you hate doing.
Also, surely they will take that money and invest it elsewhere, benefiting a whole lot of foreign countries (which you would hate).
Meanwhile, all those dollars leaving the country would cause a devaluation of the dollar.
And the $6 trillion has to come from somewhere, so either higher taxes or spending cuts, all of which will result in job losses and general economic harm.
Did any of you actually think it through?

Originally posted by twhitehead
OK, for those claiming to understand economics and wanting the debt to be paid off. Assume that the amount held by foreign parties is $6 trillion. One complaint expressed is that you are paying out interest payments to foreigners (which the xenophobic types can't stand).
Now your options are:
1. Keep paying interest.
2. Default and ruin your economy.
...[text shortened]... will result in job losses and general economic harm.
Did any of you actually think it through?

The way bonds work, paying them back is not an option (unless you want to default). They have a fixed duration over the course of which the debt is paid back. Typically, what happens is that new bonds get issued to refinance the old debt. In principle a government could restrict selling their bonds only to investors in their own country, but that would increase yields.

Originally posted by KazetNagorra
The way bonds work, paying them back is not an option (unless you want to default). They have a fixed duration over the course of which the debt is paid back. Typically, what happens is that new bonds get issued to refinance the old debt. In principle a government could restrict selling their bonds only to investors in their own country, but that would increase yields.

Which is why it is to the government's advantage to have low interest rates.

Just think what would happen to government debt throughout the world if interest rates were to rise 10%.