How the National Debt Affects You

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The "secret" $600 trillion Derivatives Market which most Americans have never heard of presents an opportunity to pay off the National Debt without cuts to Medicare benefits. A small 0.5% transfer fee when these billion dollar contracts execute would raise over a half trillion dollars yearly in addition to any other deficit reductions we take. See How to Pay Off the National Debt by Kainz on amazon or barnesandnoble.com.

Jim Kainz of CA 1:11PM June 01, 2011

GAAAAAAAAAAAAAAYYYYYYYYYY

diiccckk of MT 3:51PM May 19, 2011

this write-up is helping me out so much in my econ class!

Angelo Di Ruazza of IN 8:29AM May 16, 2011

We are no longer members of a gold standard economy, the value of our money and assets is directly proportional to how much faith and value we place on them. We really should deal with our deficit but, realize the true affects that the deficit has.

Lawrence of FL 1:50PM April 19, 2011

When we gave the vote to people who could not read and did not own property we spelled the doom for democracy. The politicians run after the votes of the non contributing groups -- that are now a growing majority. It is only a matter of time before unenlightened self interest pulls this whole mess down on top of us.
The lower class will not feel much as their entitlements will be indexed to inflation.
The middle class assets will be devestated by high inflation. The inflation will rapidly reduce the value of our currency and, in effect, reduce the national debt.
The rich will suffer the least as their assets will rebound to match inflation.

jerryB of MD 9:10AM April 05, 2011

The day is not too far off when the countries & entities which buy our debt will be much less likely to do so. As in fragile economies .... from Bloomberg.com, Mar 7, 2011 :
'The Irish 10-year yield climbed six basis points to 9.44 percent. It earlier reached 9.477 percent, the highest since 1993. The nation’s incoming government said it may need to introduce laws allowing the restructuring of some senior bank bonds, as the country’s debt level risks are becoming “unsustainable.”'
Imagine the trouble we will have if/when government bonds must pay around 10% to attract real interest. I am hopeful that this won't happen. Unless 'lawmakers' make substantive cuts and/or modifications to Social Security, Medicare, Medicaid AND defense, which would help to install confidence in our economy & country, much higher interest rates will in time prevail.
We cannot tax our way out of this, though returning to Clinton level taxes would be a modest adjustment and affordable for most. As in any competently run business, expenses must be controlled or bankruptcy looms.

Tim B of WA 10:20PM April 04, 2011

I STILL HAVE CHECKS!

Broccoli Spears of CA 12:52AM April 02, 2011

Saving the country and the world is not important to either political party. Being elected is the only priority. Maybe if we were better educated we could acknowledge the truth. But I can't see it happening. When we hit bottom it will be worse than it has been for the Greeks and will soon be for the English.

Bob O'Connor of CA 9:44AM April 01, 2011

Here is the problem, Republicans say we have a spending problem, Democrats say we have a revenue problem, they are both right. Technically we can fix the revenue problem by increases taxation. If that would simply fix everything then I would suggest we increase taxes ACROSS THE BOARD no one gets an exemption the Rich get taxed more the Poor get taxed more.
By the same token the Federal Government MUST place into effect a maximum amount that it can increase spending each year. I would suggest it be half the amount between inflation and gdp increase. So if GDP increased at 5% and inflation was at 3% the Federal Government can only increase spending 4% that includes entitlement payouts, Government then has to figure out how to distribute the increase.
This would mean, that over time, the government portion of the economy will slowly shrink as a portion of GDP versus where it currently is.
Will raising taxes effect business, well yes, but by the same token we have spent money without taxing which is simply deferred taxation ( with the hope that it is at a lower rate of value in comparison to the borrowed amount ) I would suggest that now as we come out of slowed economy that 2012 is the perfect time to have this debate.
The main issue I currently have is there are too many exemptions allowing far too many people to pay no tax. I am disappointed that it is a class warfare rather than an honest discussion of responsibility. Half the nation pays no Federal Income tax, this angers me whenever i hear that people say increase taxes on the rich, can they afford it, sure but if you are receiving benefits then you should participate on it rather then claiming to be too poor to be able to afford it. It creates benefit with no cost and is a dangerous situation.
Finally, I would suggest that taxes over time will be able to be reduced if this method of taxation and government spending are controlled. Over time the Federal Government will become less and less a portion of the economy and therefore less money would be needed to fund it.
Again I am angry at Democrats for claiming that spending is not needed to be cut ( or at least restrained in a substantive way ) I am upset at republicans that they do not see that we must in the short term raise taxes to cover long term obligations that have accrued due to over spending ( not reducing spending a while ago at the same time we decreased taxation ).

Forrest of UT 11:22PM March 31, 2011