How can someone clearly establish whether a nations debt is excessive
other than by comparing it to other nations debt ratio to say GDP.
Individuals borrowing are controlled by the lending institutions who
know his earnings, what he can put up for collateral and how old he
is. What do we need to know about governments certainly in theory they
will last longer than most individuals.
Government debt is excessive when that gov. can't make the monthly
payments. It is the same for individuals as you note. However,
national gov. debt like for the US never needs to be paid back in full.
Something that most people don't understand. For individuals, it does
eventually have to be paid back in full. It is usually advantageous for
the US gov. (and companies) to take on more debt when interest rates are
low and slow down borrowing when interest rates go high. Both Clinton
and Bush did the right things as far as borrowing goes. Clinton slowed
it down when interest rates went high and Bush picked it up when
interest rates went lower.
Re: Saudi Arabia, Iran, Venezuela...better start saving!!! ... Have you paid your debt to China and Japan insolent?! ... You are "prospere" because you borrowed and by borrowing you're being ...power to analyse the deep troubled situation you're in. ... their dead dinosaur goo- so there goes the worry about Iran's nuclear ... (alt.religion.islam)
Personal Debts and US Capitalism ... Federal Reserve data show that US mortgage plus other consumer debt...Past borrowing now costs Americans so much ... millions of Americans into borrowing to buy a first home. ... stock market bubble gave way to a housing bubble.... (sci.econ)
Re: Removing Cap Virtually Eliminates SS Funding Gap ... Then, when they start retiring, borrow money to pay... >>up borrowing capacity.... >FICA tax surplus will pay down the debt, because there is no other use ... >for the surplus FICA taxes in that case. ... (sci.econ)
Re: Finally - The Banks Lose ... funds available for irresponsible lending, but my point (and where we ... If you have borrowed at all, it is likely that it was because you didn't have all of the money you needed for what you wanted and you believed that repayments on the debt were manageable within your means. ... Perhaps you have been lucky enough that your means have never been reduced, others haven't been so lucky, but that doesn't make their borrowing any more irresponsible than yours or mine. ... How do you factor in your wife running off with the milkman and taking her share of the household income with her and leaving you with kids to raise as a lone parent on a single income and all the debts payments to cover? ... (uk.legal)
Re: Saudi Arabia, Iran, Venezuela...better start saving!!! ... Stop making so much fuss about the 3rd world and use your brain power to analyse the deep troubled situation you're in. ... By borrowing you have become a rottweiler under the orders of your masters who decide what to do. ... America's unsustainable debt.... Pay your debt Mitch!... (alt.religion.islam)
