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Infinity and beyond!
in reality, there is no infinity. in reality, the u.s. will die long before we get any further up the curve.
be dead anyway
I have a simple solution:
Redefine Public Debt. There - done. FASB did it to the banks. Biden wants to do it to the CPI.
Why not here? Just call public debt something like off balance-sheet previously instigated monetary obligations.
Carry on - nothing to see here.
Already done. Fannie & Freddie debt held off balance sheet, $5 trillion worth, much of it crappy subprime mortgages marked at par.
This chart doesn't include agency debt, 6-7 trillion already, so it is a Goldilocks scenario.
Dude, you stole my avatar!!!
Nationalise all US gold mines. Revalue gold to $10M / toz and settle all debt obligations in gold. Further metal production should meet future spending needs. Problem solved....oh yeah abolish the Fed and incarcerate those fucking bankers - all of 'em.
Nationalize private property! Brilliant idea Hugo. How are those cancer treatments coming along?
Definitely, sell it to MEEEEEEEEEEEEEE! I'll give you pennies on the 'strong dollah', honest! Hahahhahahahaha!
LOL! and don't forget the corrollary:
"Parabolic up..., parabolic____________"
I think we can all fill in the blank!
There is no such thing as a parabolic down for debt. The deficit is the difference between revenue/taxes and cost/spending.
The debt is a perpetually increasing function. So we need to increase revenue at the same rate or decrease spending. The welfare and quality of life for Americans can go parabolic down, but no such luck with debt.
Have you ever heard of 'default'?
Well... is a slope of negative infinity technically "parabolic," or is it something closer to "there is no spoon," "Leeloo Dallas multipass," etc?
Honestly, all political theater aside... What is the difference between 14 Trillion, 24 Trillion or 34 Trillion in debt? Can anybody really understand Billions, much less Trillions. American debt was near this level for a LONG LONG time, not just the last 3 years.
The train left the station back around 1970s when Nixon had to pay for Vietnam... if we survived from 5 Trillion to 14 Trillion. (roughtly from 2000-2011), what is another 10-20 trillion? Does it truly matter? Unless the market price in default. (And it certainly hasn't, S&P from 1350 to 1300 doesn't count, S&P at 750, maybe.) It is an binary step function. Now, debt at 24 Trillion is irrelevant to Americans. Interest rate at 15% is material and it is deadly....
So, all this, will go away... by Aug 2nd, and technically, America has had government shutdowns before, but never default. And we will nuke something before we default. Not to say that we won't default, but we will definitely nuke somebody first.
I don't think anybody here, in government or alive can truly understand the scale of a 14 Trillion debt. My point is that it is already bad, and all this is for show.
pardon, felt my input was needed.
/misinterpretation of need corrected/
This is a good attempt at some perspective.
And the pallets would be stacked 28 high to equal the $14T dollar debt number.
Wrong. US debt was less than 1 trillion only 20 years ago.
...we will definitely nuke somebody first.
...we will definitely nuke somebody first.
We'll nuke ourselves and then start pointing bony fingers at others.
the correct answer is aggregate demand, because bernanke says aggregate demand is the name of the game, and parabolic aggregate demand is the superior economic condition. i think we should let our genius central bankers (bernanke must have an iq of at least 250, how else would he be given the job?) take care of monetary policy, and we should get back to shopping at wal mart, eating corn syrup and drinking delicious fluoride water.
No, nukes will be dropping and skynet will be destroyed before the 2nd half outcome can be charted. So even when we're dead the chart will only read parabolic up. It never ends.
The radiation will kill the computers, too.
Kind of agree, the only thing that backs the USD is a nuclear arsenal (or nucular as Bush used to say)
I'm expecting a 61.8% fibonacci retracement at some point when governments start to collapse :)
the laws of exponents are a bitch
I like pretty pictures :D
When I was grading papers as a grad assistant if the students claimed a curve was exponential but they didn't plot it on a log scale, they lost points. Didn't want to do it, but felt I owed it to them.
Seems silly to me. An exponential function is what it is regardless of what scale you plot it on.
Exponential function on a linear scale increases rapidly and non-linearly. On a log scale it looks linear.
I think the linear scale gets the idea across to non-technical people much better.
I agree with the graduate assistant, see my previous post. The graph is a natural result of math, and that is just another tool used by all sides to skew their argument.
Still, it is a pretty chart, though.
We used to call this a "boner" chart. If he's not careful, we will soon be calling it a "Boehner" chart.
The most important decision you have to make is what do you stand for Danny- goodness, or badness.
IT'S IN THE HOLE!!
Always love a good Caddyshack reference. How 'bout a Fresca?
'You'll get nothing and like it!"
It's easy to grin
When your ship comes in
And you've got the stock market beat,
But the man worthwhile
Is the man who can smile,
When his shorts are too tight in the seat.
"Where'd you come from? A Scotch ad?"
Fresca™ is THE MOST God-awful swill I ever tasted!
ship has been steered back onto course
Said the Captain of the Titanic to the First Mate
She's made of iron, sir. I assure you she can sink...and she will.
lookin' good to me!
Why didn't they print it in black and white?
Don't they realize colour prints cost more money?
what a waste of money...
let's just stick with the CBO baseline then everyone can be happy :)
Let's look at the history of IMF cost projections to debtor nations instead - if the IMF says "it is going to cost x and your country only a little fucked" then that can be reasonably reliably interpreted as actually meaning "it is going to cost 5-10x and you should hedge by either going long lubricants or going long steel reinforced undergarments"
This chart needs no introduction... or explanation.
Yes it does.. Im color blind
Make the colors GOLD and SILVER...
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