You've nailed it. That's exactly why everyone needs to have health insurance now - before they have a preexisting condition. That way insurance companies will continue o make big profits, and not have to raise rates at all.
That's exactly what I've repeatedly said here. The debt ceiling means noting. It's the budget that federal budget, passed by congress, that promises the good faith of the US of A to pay bills that are not covered by the taxes collected. It doesn't matter at all what the interest rate is, if you have a balanced budget and don't borrow anything. Arguing about the debt ceiling is just like the Wizard of Oz saying, "Don't look behind that curtain over there, where I've hidden the budget, that we passed last year." Simply subterfuge and political gamesmanship, which does nothing, except to compromising the good faith and confidence in the government and the US economy, causing markets to crash, and workers to lose their jobs. The games politicians play with other people's money!
The mathematics of compound interest has nothing to do with it.. It doesn't matter whether the feds pay simple interest, compound interest, fixed rates or variable rates; whether interest is paid annually, monthly, daily, or hourly. Congress decides what type of interest they will pay for the bonds that they sell. And, regardless of the type of interest Congress has chosen, they must and do include the interest payments in he national budget. If the budget is balanced, then the debt does not increase, and if the spending, including the interest payments, is less than the taxes collected, then the debt decreases. And, if the budget passed by congress is more than is collected in taxes, then the debt increases. It's really pretty simple mathematics, and you don't even need to consider the complexities of compound interest, just the total amount of interest, and other spending that must be paid for. that's how budgets work.
The debt ceiling has nothing to do with it. The debt would not increase if and only if Congress did not allocate spending more than they planned to take in in taxes. This debt ceiling stuff is simply a political game played in order to avoid having to make the hard decisions that need to be made.
Lang, how can a foreign policy with the following results not be considered disastrous?
- More than 8,000 americans dad.
- Mire than 50,000 americans wounded.
- More than 500 US allied soldiers dead.
- More than 2,500 US allied soldiers wounded.
- About a half million foreign nationals dead, and millions more mounded.
- A trillion dollars, or more added to the US debt.
- And nothing has really changed in either country, except that the Shia-Sunni gap has widened, and millions more have many reasons to hate the US.
Might a few dozen Navy Seals have removed Al Qaeda leadership over the past decade equally well? Saddam would almost certainly have been taken out a few years ago with an Iraqi Arab Spring, with no cost to us at all.
It's good to see you here again, Heinlein, to ask some questions.
I know we have discussed this before, and I understand your logic.
however, we also need to consider the consequences. If we tax each dollar at the same rate, it certainly appears that we arrive at a situation much like what we see now: a wide disparity between the rich and poor and middle class, with no way for the poor and middle class to close the gap. And because it appears that if we tax each dollar the same way, the poor and middle class become poorer and have less and less wealth to drive the economy forward.
Over the past few decades, we have been moving towards a situation where, in fact, each dollar is taxed more nearly the same way. This is a very big change from the 1950's and 1960's when the wealthiest among us paid taxes at a 75% rate or more on their millionth dollars. And as we have approached that limit, the separation between the top 1% and the bottom 80% has widened considerably. And as that separation has widened, so, too, has the ability of the poorest and the middle class to get the education, police protection, and other traditional government services evaporated. These are services that they absolutely need if they are going to have any hope of increasing their wealth, and closing that wealth gap.
So, although I understand your logic of taxing each dollar the same, then how do we find any way to escape from this widening separation of the 1% and the 80%?
It's probably your restaurant or lobster supplier that is increasing the price., Retail live lobster here is now $6/lb, or less. Wholesale for restaurants and stores is a lot less.
Thank you for your recognition of my posts. I also like Lang's posts. He is a very good story teller, and I think that he even believes some of the things that he posts ;)
But, I must disagree with your (and Jok's) characterization of sstail's posts. I don't think that sstail is a liar, or (at least most of the time) purposely being dishonest. I think that Sstail really believes (at least) most of what he posts. Some of what he posts is political in nature, and some is observations that may need a little more fact checking, but I think it is what he truly believes.
I don't repeat much from on-line blogs, or TV broadcasts because I don't spend much tine reading or watching those things. I'd much rather provide, and discuss, my own opinions and understanding of the world around me - and to read the opinions of other posters, rather than text copied from elsewhere. (But, I do also enjoy attributed articles posted by Uncle_fulbert, and a few others here, as well.)
I would also add gop_refugee or w,heinlein to the list of posters here who provides interesting perspectives and analysis of the world around us. I always try to read what he posts.
The posts that I find useless are those which dissolve into content free name calling, either of other posters, or of national figures. These are never worth the bits they occupy on a disk in the Yahoo cloud somewhere.
SS: "The debt will increase even if the deficit is zero due to the interest on the money owed,"
That is absolutely wrong! If the deficit is zero, then that means that we are collecting enough taxes to pay all the federal bills, including the interest on the debt. When the deficit is zero, then the debt will not increase at all. And, in fact, when the deficit is zero, there may be a few more tax dollars to begin to pay down the debt a little.
That's easy to explain to anyone with the skills of a 5th grade math student. The debt will increase until the deficit is zero. If the deficit is about $500 billion now, and it is dropping by about $250 billion a year, I'll leave it to you figure out how many years it will take until the deficit is zero. (You do have the math skills of a 5th grader, don't you?)
If the economy has anything to do with it, then Red Lobster should be doing fine. Lobster now costs less than hamburger in many places. I recently had a big lobster dinner here, including salad, soup, a big plate of grilled veggies, and a drink for under $15. Lobster is cheap here because their predators, including cod and flounder are gone. As these predictors are gone, lobsters are now growing into adulthood in the billions.
And don't forget the part that every conservative likes best:
5) Everyone who can pays pays their own way, rather than getting their health care for free, paid for by taxpayers, and those who do actually pay their own way. Being self-supporting is the name of the game!
Read the article that Dr. Jeff Masters published on Weather Underground on March 27 of this year, titled "Global Warming Continues with no Slow Down". He explains how La Nina/El Nino cycles have caused a flatten of surface temperatures over the pat 15 years. But he also shows that when the temperatures of the oceans are included, the average global temperature is still rising at about the same rate that it has for the past 50 years.
Without any science, it's just unsupported politics.
It does include the service on the debt. That's about 7% of this year's budget that Congress and the federal government that they represent agreed to pay. What do you plan to do about the other 93% of the budget that needs to be paid for, and that Congress promised to pay with the good faith of he USA, and their oath of office?
The lights, floor, cabinets, and most everything else in the kitchen was being replaced and updated. So, we pay the electrician, regardless of what type of lights we chose. We simply picked the lights that would be cheapest for us over the next few years - or decades. Power companies across the country are paying homeowners to use power saving devices because they help them avoid having to build new, and very expensive, power plants. A few million in rebates is a good investment for a power company, if it avoids having to spend a billion dollars building a new power plant, and additional power lines to transmit the power.
SS, check your spread sheets again! We are still about $500 billion in deficit - that is spending about $500 billion more than we take in in taxes. Congress has said that we need to still pay that additional $500 billion in the federal budget, through borrowing. If they want to cut spending, then cut the spending, but don't refuse to honor the checks after promising to pay them. That's simply unlawful, deceptive, and unethical. Do you truly expect our Marines in Afghanistan to be happy when their paychecks bounce?
What does raise the federal debt is pass a federal budget (and other federal spending) above what is taken in in taxes, and therefore requiring borrowing to pay the bills. If you don't pay those bills after the goods and services have been delivered, it'd called a default and leads to bankruptcy, when the bills for delivered goods and services are not paid. How anyone who has sworn to defend the constitution and to "bear true faith and allegiance to" to the nation can then decide to conspire to put the nation into default and to put the nation's finances into turmoil at the same time is very hard to understand. Al Qaeda couldn't have done it any better. They certainly must be very happy to see so many allies in such high places.
Given the current realities in the White house and Senate, it can't be defunded. The existing realities will only allow a few to cause a big ruckus and so, cause a big drop in the stock and bond markets, as they make citizens and the world worry, again, about the reliability of the current government in Washington.
Some of you may remember a rather heated discussion on this board a couple of years ago about the replacement of incandescent light bulb with the new, lower power, but more expensive florescent bulbs. It looks like the proponents of both types may have been wrong.
As we remodel parts of our house, including the kitchen, the lights are being replaced. We have replaced the recessed light cans in the ceiling with a bunch of recessed LED lights. They each use 13W to produce as much light as a 70W bulb. The 7 in our kitchen ceiling will use less power than a single 100W incandescent light. They cost $35 each, but with a $10 rebate from the local power company to reduce the price to $25.. And they use no bulbs, but will provide light for between 25 and 30 years, without any necessary replacement or maintenance. They are much cheaper over their lifetime than any fixture that uses a light bulb and they provide the same color and intensity of light. Light bulbs of most every sort seem to be heading in the same direction as oil lamps.
ah, SS, Obamacare kicked in 3 years ago. many parts of it are already in effect, with more to happen over the next few years.
And which market pressures?
- millions more paying their own way?
- Making it easier to compare costs, and do comparative shopping, both for procedures, and for insurance?
- Very few people arriving at an ER without any way to pay their bill, instead of half the people thee with no way to pay?
- Fewer, simpler, more consistent, and shorter forms for both customers, and for doctors?
As I've said before Obamacare is not perfect. There are still some problems. But, until the GOP realizes that most Americans just want the remaining problems identified and fixed, and they don't want the whole package removed, the GOP will have a problem.