22 Mar 11
Originally posted by KazetNagorrait's projected to reach 90% of GDP in a few or few dozen years.
Huckabee:
"Now, individuals know that, businesses know that, why doesn’t the government know that? But they continue to spend money."
Interesting. Is it Huckabee's claim that no business has a debt of over 60% of its turnover?
now, if a business hits that level, that can get additional loans from the govt or go bankrupt and even keep their management in place.
what is the government going to do if they hit that level, though?
22 Mar 11
Originally posted by zeeblebotSo is it Huckabee's claim that no business has a debt of over 90% of turnover?
it's projected to reach 90% of GDP in a few or few dozen years.
now, if a business hits that level, that can get additional loans from the govt or go bankrupt and even keep their management in place.
what is the government going to do if they hit that level, though?
what is the government going to do if they hit that level, though?
I don't know. Why don't you ask the Japanese, who have so far accumulated over 200% of GDP in debt?
22 Mar 11
Originally posted by KazetNagorraBusinesses that have a debt of 60% of their GDP/turnover and no logical plan to start paying it down... ever... are going to find themselves bankrupt pretty soon; especially when their annual spending budget exceeds their revenue by 50%.
Huckabee:
"Now, individuals know that, businesses know that, why doesn’t the government know that? But they continue to spend money."
Interesting. Is it Huckabee's claim that no business has a debt of over 60% of its turnover?
22 Mar 11
Originally posted by sh76No it hasn't. But zeeblebot's suggestion that 90% of GDP in debt is somehow catastrophic is clearly absurd, as there are many countries with 90% or more of GDP in debt, and many of those can not borrow nearly as easily as the US can.
... and it's worked out great for them...
22 Mar 11
Originally posted by KazetNagorraHow many countries that have exceed 90% have been able to recover to more manageable levels without becoming insolvent.
No it hasn't. But zeeblebot's suggestion that 90% of GDP in debt is somehow catastrophic is clearly absurd, as there are many countries with 90% or more of GDP in debt, and many of those can not borrow nearly as easily as the US can.
22 Mar 11
Originally posted by WoodPushThe US is a nice example. Debt was over 100% of GDP after WW2 and then dropped to around 30% before Reagan started his drunken sailor spending spree.
How many countries that have exceed 90% have been able to recover to more manageable levels without becoming insolvent.