War in Ukraine

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GQ-r2osXkAAs-bs
 
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StarRaider said:
that is the old racist math. with the new lefty math doing thing like "forgiving student loans" is good since it just goes to the deficit where...
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As opposed to the money spent on foreign aid, wars, covid relief, etc? The money spent on that crap could have paid for all the student loans and had plenty left over.

You're not against debt and spending you are just opposed to certain people receiving it. That's the true spending issue in this country
 
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jvol1 said:
Depends on the roi of what the debt is being used for vs cost of debt.

Does anyone think trump will make the debt situation any better? Hes already had one chance and failed.
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Trump needs 4 more years to fulfill his promise of easily paying off the entire national debt. He's super cereal this time
 
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jvol1 said:
Depends on the roi of what the debt is being used for vs cost of debt.

Does anyone think trump will make the debt situation any better? Hes already had one chance and failed.
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I could see a couple of scenarios where CC purchases without payoff might be good money management.
- emergency where you have no choice but to make the purchase
- close to a major life event like bankruptcy, moving out of country, or death.

I considered short term financing which would roll to traditional financing but that assumes the CC would be paid off once trad loans are secured.

DJT will increase American's debt. Guaranteed.
 
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McDad said:
I could see a couple of scenarios where CC purchases without payoff might be good money management.
- emergency where you have no choice but to make the purchase
- close to a major life event like bankruptcy, moving out of country, or death.

I considered short term financing which would roll to traditional financing but that assumes the CC would be paid off once trad loans are secured.

DJT will increase American's debt. Guaranteed.
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I think this is one of the problems with our style of democracy. It is impossible to have any long term strategy. everything we do is on a MAX 4 year thinking cycle. including finances. anything that goes beyond the 4 years, or even 2, just becomes something to run on next time. We just constantly stay in a short term mindset and ignore that the short term thinking is supposed to transition into some type of long term strategy.
 
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LouderVol said:
I think this is one of the problems with our style of democracy. It is impossible to have any long term strategy. everything we do is on a MAX 4 year thinking cycle. including finances. anything that goes beyond the 4 years, or even 2, just becomes something to run on next time. We just constantly stay in a short term mindset and ignore that the short term thinking is supposed to transition into some type of long term strategy.
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If the will existed, we could modify the constitution to limit debt or require we carry no debt.
 
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McDad said:
If the will existed, we could modify the constitution to limit debt or require we carry no debt.
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With the will we could modify the Constitution to impose a balanced budget but it will be a long time before we are debt free were that to actually get enforced.

But first it requires the modification of the Constitution soooooo….
 
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NorthDallas40 said:
With the will we could modify the Constitution to impose a balanced budget but it will be a long time before we are debt free were that to actually get enforced.

But first it requires the modification of the Constitution soooooo….
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Long time is relative. Our tax receipts grow by about 100B per year. Decade increase from current is 4T. If we could get speding to match receipts and then shave $500B off, that would add up to 5T over the same decade. If 9T applied to debt over decade,

About 40% reduction. Not bad.

But we aren't going to spend less AND I agree,we will not modify the constitution soooooo....

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LouderVol said:
you are conflating two largely unrelated items.

our standard of living increase has nothing to do with our countries debt financing. as I pointed out our countries debt financing is now directly taking away from our standard of living with increased inflation beyond market growth.

and don't back down now, you were just saying the 1 trillion is not a concern, but you end by saying its not sustainable, which is it?
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You're simply wrong. Just go read up on this more, please.

our standard of living increase has nothing to do with our countries debt financing
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Seriously. Come on man. Maybe you shouldn't be debating economics.
 
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LouderVol said:
I think this is one of the problems with our style of democracy. It is impossible to have any long term strategy. everything we do is on a MAX 4 year thinking cycle. including finances. anything that goes beyond the 4 years, or even 2, just becomes something to run on next time. We just constantly stay in a short term mindset and ignore that the short term thinking is supposed to transition into some type of long term strategy.
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This is why the entitlement can keeps getting kicked down the road.
 
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McDad said:
Wrt the analogy, is using a CC without paying off the balance sound financial management?
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Not if you're paying 24% interest. But, if you have a HELOC or are paying interest on your home mortgage, probably yes.

The answer - mathematically - is simple. Assume you can borrow money and pay 7% interest. If you can achieve a return greater than 7%, then not paying off the balance is sound financial management. As a business owner, for me it's common sense when it comes to potential purchases (and potential resulting revenues/profits). As an individual, it's more complicated, but for me it boils down to the following example: I want that house. I don't have $700K in my accounts. Thus, I borrow that amount so I can achieve my goals and have a higher standard of living. But, there will come a time when I down size, move to a fixed income, and eliminating my mortgage and debt will make sense.
 
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MontyPython said:
Not if you're paying 24% interest. But, if you have a HELOC or are paying interest on your home mortgage, probably yes.

The answer - mathematically - is simple. Assume you can borrow money and pay 7% interest. If you can achieve a return greater than 7%, then not paying off the balance is sound financial management. As a business owner, for me it's common sense when it comes to potential purchases (and potential resulting revenues/profits). As an individual, it's more complicated, but for me it boils down to the following example: I want that house. I don't have $700K in my accounts. Thus, I borrow that amount so I can achieve my goals and have a higher standard of living. But, there will come a time when I down size, move to a fixed income, and eliminating my mortgage and debt will make sense.
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That makes sense. And, I mostly agree.

Here's my understanding...poke holes in it...America isn't buying assets or investing into instruments which provide a ROI. America is buying consumables. There is nothing tangible to trade for the debt we incurred.

To use your personal finance analogy, my banker is happy to lend to me on an asset or something with a proven ROI. But even with those loans, once my loan to value or debt to income exceeds their guidelines, the loan isn't available.

At what point is Americas loan to value or debt to income outside of a low risk loan?
 
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Velo Vol said:
What business are you in?
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Judging by his picture, He's King of the Britons.

The Lady of Lake presented him with Excalibur which shows by divine providence he is to be King.. Now you may think strange women lying in ponds distributing swords in some farcical aquatic ceremonies is no basis for a system of government. But, here we are.
 
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McDad said:
I could see a couple of scenarios where CC purchases without payoff might be good money management.
- emergency where you have no choice but to make the purchase
- close to a major life event like bankruptcy, moving out of country, or death.

I considered short term financing which would roll to traditional financing but that assumes the CC would be paid off once trad loans are secured.

DJT will increase American's debt. Guaranteed.
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Probably the best use cc purchases would be something like real estate flipping where you have need of cash that you dont have to repair a property and expect to be able to pay it off with profit from the sale in the short term. Of course, there are rehab loans for that purpose as well.

Comparing cc's to government debt is a bit awkward because the investments tend to be in things like roads or military where it can be difficult to measure roi in a tangible way.
 
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McDad said:
That makes sense. And, I mostly agree.

Here's my understanding...poke holes in it...America isn't buying assets or investing into instruments which provide a ROI. America is buying consumables. There is nothing tangible to trade for the debt we incurred.

To use your personal finance analogy, my banker is happy to lend to me on an asset or something with a proven ROI. But even with those loans, once my loan to value or debt to income exceeds their guidelines, the loan isn't available.

At what point is Americas loan to value or debt to income outside of a low risk loan?
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Disagree.

Example: Fed money goes towards the construction of a new bridge here in the Outer Banks. This is an outlay, but it also generates ROI in the form of both increased tourism and resulting taxes paid on the local, state and fed level. Everyone wins.
 
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jvol1 said:
Probably the best use cc purchases would be something like real estate flipping where you have need of cash that you dont have to repair a property and expect to be able to pay it off with profit from the sale in the short term. Of course, there are rehab loans for that purpose as well.

Comparing cc's to government debt is a bit awkward because the investments tend to be in things like roads or military where it can be difficult to measure roi in a tangible way.
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I thought about CC as short term loan, but that assumes a payoff. At least it does to me.

Monty's analogy is no payoff.
 
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MontyPython said:
Disagree.

Example: Fed money goes towards the construction of a new bridge here in the Outer Banks. This is an outlay, but it also generates ROI in the form of both increased tourism and resulting taxes paid on the local, state and fed level. Everyone wins.
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Ok. there are some tangible things purchased with our debt. I disagree it is the responsibility of Americans to fund a bridge for North Carolinians but putting that aside for the moment... Any idea on the outlays for these tangible items compared to intangible, waste, etc?
 
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