"The Debt Ceiling"

Originally posted by finnegan
What you lot advocate.....

Who is 'you lot'?

Originally posted by twhitehead
Who is 'you lot'?

Inaccurate term I accept. Yet I think "you" know who "you" are.

Originally posted by finnegan
Inaccurate term I accept. Yet I think "you" know who "you" are.

In this particular thread, I don't see anyone advocating anything very much, yet you claimed 'you lot' were advocating something. So are the 'you lot' you refer to, not participating in this thread, or are you basing it on previous conversations with them?

Originally posted by KazetNagorra
Here's a better analogy. Suppose you borrow some money. Should you pay it all back?

Or how about this one:

If you had to borrow money last year to make ends meet, what should you do?

Increase your spending to keep up with inflation hoping that you will either hit it big and pay if off with the extra money you might get this year?

Cut back on spending to below the level of money generated last year so that you can at the very least stop borrowing money.

I suggest the latter.

Originally posted by Eladar
Or how about this one:

If you had to borrow money last year to make ends meet, what should you do?

Increase your spending to keep up with inflation hoping that you will either hit it big and pay if off with the extra money you might get this year?

Cut back on spending to below the level of money generated last year so that you can at the very least stop borrowing money.

I suggest the latter.

For a household budget maybe those are the options, but even then there is a third:

Increase revenue to meet commitments.

For government, that can mean:

Tax the rich and make the bstrds pay what is due from them instead of screwing the economy and giving back as little as they can get away with.

Originally posted by twhitehead
In this particular thread, I don't see anyone advocating anything very much, yet you claimed 'you lot' were advocating something. So are the 'you lot' you refer to, not participating in this thread, or are you basing it on previous conversations with them?

Based on past form. They come out from under their stones soon enough.

Originally posted by finnegan
For a household budget maybe those are the options, but even then there is a third:

Increase revenue to meet commitments.

For government, that can mean:

Tax the rich and make the bstrds pay what is due from them instead of screwing the economy and giving back as little as they can get away with.

Sure, increase income that would be great.

Do you base your spending on how much you think you will increase income? Or do you base spending on the increase after you get it?

Originally posted by Eladar
I suggest the latter.

Yet the vast majority of humans when given access to easy credit, choose the former. I too think the latter is a better option, but humans are not very rational about such things.

Originally posted by twhitehead
Yet the vast majority of humans when given access to easy credit, choose the former. I too think the latter is a better option, but humans are not very rational about such things.

This would be especially true if you only had the card for 4-10 years with it already loaded and get to load it up even more to pass on to another person.

Originally posted by Grampy Bobby

[b]"The Debt Ceiling" (October 27, 2013)

"US-debt-ceiling: This one truly made my day! I love it when a complicated
situation can be explained in such simple terms!

THE DEBT CEILING

* Democrats don’t understand THE DEBT CEILING

* Republicans don’t understand THE DEBT CEILING

* Liberals don’t understand THE DEBT CEILING

* ...[text shortened]... opportunity."

http://hangingtogetherforjustice.org/debt-ceiling/

Other alternatives?[/b]

You forgot that as the economy expands so does your house and with it your capacity for your ceiling to grow higher on its own.

Most countries also rely on inflation to make it easier to pay off the debt. A $100 debt in 1914 was much harder to pay off than a $100 debt in 2014.

The debt ceiling is an artificial ceiling anyway. They could just vote to make the ceiling $100 trillion and would then never have to vote on this again!

Besides, you have to pay your bills, folks. This really is a no brainer...perfect for RHP!

Originally posted by uzless
You forgot that as the economy expands so does your house and with it your capacity for your ceiling to grow higher on its own.

Most countries also rely on inflation to make it easier to pay off the debt. A $100 debt in 1914 was much harder to pay off than a $100 debt in 2014.

The debt ceiling is an artificial ceiling anyway. They could just vote to m ...[text shortened]... !

Besides, you have to pay your bills, folks. This really is a no brainer...perfect for RHP!

To pay off your debt, just get another card to make payments on your original card! No brainer folks.

We can't pay off debt without going into further debt! That is a no brainer.

Debt is at a fixed rate...usually through Bonds. The bonds will pay 1, 2 3 % over a fixed 5 10 20 year term etc.

The inflation rate is not fixed and if inflation is higher than than the Bond yield, the government debt is easier to pay off.

Originally posted by uzless
Debt is at a fixed rate...usually through Bonds. The bonds will pay 1, 2 3 % over a fixed 5 10 20 year term etc.

The inflation rate is not fixed and if inflation is higher than than the Bond yield, the government debt is easier to pay off.

Are you trying to argue that it is better to hang on to debt than to pay it off?

Originally posted by uzless
Besides, you have to pay your bills, folks.

No, actually, you don't. You can either maintain the debt via interest payments, or default. The later makes it harder to borrow in future.