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Political Talk
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Old 02-12-2014, 03:54 PM   #41
Cabrio330
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Do you know what "rolling over debt" means?
You're humorous. Yes, I do. So, the renewal or roll-over of existing debt is of no consequence?
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Old 02-12-2014, 04:19 PM   #42
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You're humorous. Yes, I do. So, the renewal or roll-over of existing debt is of no consequence?
You're the one who's failing to acknowledge the consequence of being able to indefinitely roll over a debt, which does allow you to just pay interest on a debt and never repay the principle.
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Old 02-12-2014, 04:35 PM   #43
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You're the one who's failing to acknowledge the consequence of being able to indefinitely roll over a debt, which does allow you to just pay interest on a debt and never repay the principle.
Nope, have not done any such thing. Just as I didn't fail to acknowledge your point about our current negative interest rate environment, simply because it isn't relevant to my original point. Perhaps you just don't understand my original assertion, since you continually suggest that the debt remaining outstanding is of absolutely no consequence ("the only cost is interest"). But then again, you acknowledged that increasingly higher levels of debt are of consequence (see your comment about the resulting higher interest rates required by lenders), so I am not sure why you are contradicting yourself.
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Old 02-12-2014, 04:59 PM   #44
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If debt interest eats into a certain % of GDP (pick a number) wouldn't anyone agree that it is a significant problem? What % is it now?
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Old 02-12-2014, 05:12 PM   #45
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If debt interest eats into a certain % of GDP (pick a number) wouldn't anyone agree that it is a significant problem? What % is it now?
Not necessarily, this is a complicated area. I think everyone agrees that at some point, increasing debt levels as a % of GDP will be a problem. But the "point" has much to do with people's expectations which can be managed (or manipulated, depending on your point of view ). And of course expectations are shaped by one's views of appropriate government policies, programs, etc.
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Old 02-12-2014, 05:54 PM   #46
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If debt interest eats into a certain % of GDP (pick a number) wouldn't anyone agree that it is a significant problem? What % is it now?
It's about 1.3%.

GDP of $16.6T and 2013 interest payments of $222.75B.

It's also about 6.6% of all federal outlays which is fairly low on a historical basis.
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Old 02-12-2014, 07:15 PM   #47
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Nope, have not done any such thing. Just as I didn't fail to acknowledge your point about our current negative interest rate environment, simply because it isn't relevant to my original point. Perhaps you just don't understand my original assertion, since you continually suggest that the debt remaining outstanding is of absolutely no consequence ("the only cost is interest"). But then again, you acknowledged that increasingly higher levels of debt are of consequence (see your comment about the resulting higher interest rates required by lenders), so I am not sure why you are contradicting yourself.
Can we go back to that first post?

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Originally Posted by Cabrio330 View Post
You mean like how the government fools people like busa, badfast and liar so they cannot understand that by increasing debt, the federal government is actually taxing us? I'll just leave this here...

http://forum.e46fanatics.com/showpos...&postcount=186

Another source, much longer so I only quote one section that is directly on point:

http://www.econlib.org/library/Enc/G...dDeficits.html
I gave you an example (negative real interest rates) where that's not true.

QED
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Last edited by rapier7; 02-12-2014 at 07:16 PM.
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Old 02-12-2014, 07:56 PM   #48
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Can we go back to that first post?



I gave you an example (negative real interest rates) where that's not true.

QED
I see your point, as you were addressing my comment specifically regarding marginal borrowing, in which case your example is exactly correct with negative interest. I should not have limited my point to marginal borrowing, and I should have noted the negative interest exception which of course is a temporary anamoly.
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