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The U.S. national debt reached $20 trillion for the first time ever last Friday after President Trump signed a bipartisan bill temporarily raising the nation's debt limit for three months.
While at Camp David, Mr. Trump, with the stroke of his presidential pen, increased the statutory debt last Friday by approximately $318 billion, according to the Treasury Department. Before the bill's completion, the U.S. debt was sitting around $19.84 trillion.
The legislation allowed the Treasury Department to start borrowing again immediately after several months of using "extraordinary measures" to avoid a financial default. The bill passed last Thursday 80-17 in the Senate and in the House 316-90 on Friday. Around $15 billion in emergency funding for Hurricane Harvey recovery efforts was attached to the borrowing measure.
https://www.cbsnews.com/news/national-debt-hits-historic-20-trillion-mark/
[That works out to just shy of $62,000 per American. --Ed.]
(Score: 0) by Anonymous Coward on Friday September 15 2017, @04:13PM (3 children)
Our debt holders have very little to say about the terms of repayment. I don't understand how there are so many financially illiterate fucks with opinions.
Want to tell me where and how "things" like you get ideas?
--Creimer
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(Score: 2) by ledow on Friday September 15 2017, @04:50PM (2 children)
I think you'll find they agreed them when you took out the loan.
And they have to agree to any deferrals (UK made several for the WW2 debt).
And they have to agree to the terms of those deferrals.
And they have recourse when you don't pay (which still happens even for large countries), and can choose the terms of any future loans based on your previous (you think this is just one loan, or that any country you owe only has one loan with you? No, they allow consolidation and get re-vamped every few years as new loans are folded in, paid off or disputed).
And they get to use them as a bargaining chip (interest killing you? Okay, how about you reduce the interest on our neighbouring country's loan, or provide us a good arms deal, etc.)
They have a fucking lot to say about terms of repayment or they wouldn't grant you the loan, and if you don't follow their terms the NEXT terms are worded even more in their favour.
Rather than think that I automatically meant "Oh, they can charge you twice this month because they feel like it", try reading.
You don't take out a loan and then say "Fuck it, I'm not paying this this year" without consequence. We have entire government departments to discuss and negotiate these deals and try to agree on terms, and it's affected by everything from "what the minister said about our country in the news" to "who we're currently at war with". Sure, on paper, it's 2%. Now ask for a deferral and see how friendly those debtors are. Then try - for instance - to reduce the debts using the emergency measures referenced above, to avoid default, without having to sit in a room and discuss repayments - and all kinds of politics - with your lending countries.
"Why Mr Brexit! Hello, you want to discuss your loans to Germany. Okay? No, I have it written down that you pay every year on time or penalties occur. What's that? Oh, you can't afford it this year. Shame. Why, if only there was some OTHER way in which we could benefit which would allow us to let you defer that kind of payment for that length outside the terms initially agreed... gosh..."
(Score: 0) by Anonymous Coward on Sunday September 17 2017, @02:36PM (1 child)
US Govt: We're running a bit short this month, can you help a brother out?
FED: Sure, just let me open the spreadsheet. OK here's a Trillion dollars, will that do?
US Govt: Cheers thanks.
(Score: 2) by ledow on Tuesday September 26 2017, @12:58PM
"Hmmm.. strange... the value of the dollar plummeted internationally when we did that, and our debt is counted in Euros anyway, so we still need to find the money and we just screwed ourselves over while also making it really easy for all the people who owe US money to pay us a virtual pittance and clear their debt to us forever...."
Never become an economist, mate.