Posted on Dec 15, 2014
Is our national debt a threat to our national security? Why?
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Our country is in debt nearly $18 Trillion, and the US owes $6 Trillion to other foreign countries. I wonder if we're vulnerable to the lenders to a point where they could disrupt or cripple our economy and markets. Are we bank rolling China's military while ours is being reduced and defunded. Can I debt be leveraged against us in a power struggle with nations? What do you all think?
http://www.davemanuel.com/us-national-debt-clock.php
http://www.davemanuel.com/us-national-debt-clock.php
Security
Country
Defense
Posted 11 y ago
Responses: 5
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Absolutely! This threat has been going on for approximately three decades. I remember reading an article back in the 1980's about Japan buying off our debt and whether or not that is considered a risk to our national security. Today, it's the Chinese buying off our debt. With a Debt of $18 Trillion and the Communist Chinese investing in the US, it's definitely a threat to our national security.
All seriousness aside, Our country's situation may result into doing something as dire as to the plot Americathon 1998, LOL!
http://www.imdb.com/title/tt0078766/
All seriousness aside, Our country's situation may result into doing something as dire as to the plot Americathon 1998, LOL!
http://www.imdb.com/title/tt0078766/
Directed by Neal Israel. With John Ritter, Harvey Korman, Fred Willard, Chief Dan George. In a story told in narrative flashbacks, a young TV consultant is hired by the President of a bankrupt USA to organize a telethon in order to prevent the country from being repossessed by wealthy Native Americans.
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I would say yes it is. the fact a foreign nation owns our debt ( china for example owns 8% of Americas total debt) creates a type of persona that we can neither control our own futures and that "Americas for sale"
http://usgovinfo.about.com/od/moneymatters/ss/How-Much-US-Debt-Does-China-Own.htm
http://usgovinfo.about.com/od/moneymatters/ss/How-Much-US-Debt-Does-China-Own.htm
How Much U.S. Debt Does China Own?
Find out how much U.S. debt China really owns. See what other foreign governments hold in American government-backed securities and investments.
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Yes, we are very vulnerable. Google the term "Hyperinflation" and then google Germany after WWI and, more recently, Chile.
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I would say that it's the opposite, the Chinese gave us trillions of dollars to bank roll our military. The money that they could have . . . say . . . spent to arm their military with flying tanks. Or a better navy that they desperately want. (Navies are expensive)
The threat of the debt is not so much military, but international policy. Could China leverage the debt in order to tell the US to back off while it takes over islands just off southeast Asia?
The threat of the debt is not so much military, but international policy. Could China leverage the debt in order to tell the US to back off while it takes over islands just off southeast Asia?
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SFC Michael Jackson, MBA Yes, it is a threat. Mostly in how the debt will continue to grow, and payments on interest on the debt (non discretionary spending) becomes a greater percentage of overall expenditures, it crowds out larger percentages of discretionary spending. The debt is the only thing we spend money on that has no value, the immensely expanding expenditures on social security and medicare (also non-discretionary spending) at least relate to a service, rather than a usury for a past loan. Eventually this non discretionary spending will lead to very difficult decisions for our political leaders.
Thoughts, others interested in economics? Capt (Join to see) SSgt Rusty Baker MSG (Join to see)
Thoughts, others interested in economics? Capt (Join to see) SSgt Rusty Baker MSG (Join to see)
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MSG (Join to see)
Capt Richard I P., thanks for the heads up.
It absolutely is a threat. First, just go look at this for a little while: http://www.usdebtclock.org/
Only one administration has ever completely paid off the US debt--that of Andrew Jackson. We had a zero debt from 1835 to 1837.
“When you get in debt you become a slave.”
-Andrew Jackson
Which is a whole lot like:
"The rich rule over the poor, and the borrower is slave to the lender." Proverbs 22:7
in 2013 the US paid $220,885,000,000 in interest on the debt. The CBO, who always scores costs lower than reality and savings higher, estimates that payment will be more than double that by 2019 ($550 billion). That presumes that current, near zero, interest rates remain where they are as well as massive reductions in deficit spending. Neither is likely.
The current Federal Funds Rate, the rate at which the Federal Reserve lends money to the government, is 0% to .25%. Doubling that rate, doubles the amount of interest that has to be paid. That rate was 4.75% as recently as 2007.
Compare the rate of interest in 2013 to what was spent on Education the same year:
Interest payment: $220 billion
Education: $82 billion
Nearly 4 times. That money could have paid most of the Welfare bill of $397 billion that year.
At 4%, interest on the debt would have been greater than the Defense budget.
If you wonder why the debt is only being considered a threat now, as it seems like we've always had a massive debt, consider this:
The year that the Debt reached 10% of it's current level (chained 2005 $): 1944 (FDR)
The year that the Debt reached 20% of it's current level: 1985 (Reagan)
The year that the Debt reached 30% of it's current level: 1990 (GHW Bush)
The year that the Debt reached 40% of it's current level: 1995 (Clinton)
The year that the Debt reached 50% of it's current level: 2004 (GW Bush)
The year that the Debt reached 60% of it's current level: 2008
The year that the Debt reached 70% of it's current level: 2009 (Obama)
The year that the Debt reached 80% of it's current level: 2010
The year that the Debt reached 90% of it's current level: 2012
Just like household debts, there will come a time, if we do not reign it in, when we are spending so much on interest, that there is no money for the necessities.
It absolutely is a threat. First, just go look at this for a little while: http://www.usdebtclock.org/
Only one administration has ever completely paid off the US debt--that of Andrew Jackson. We had a zero debt from 1835 to 1837.
“When you get in debt you become a slave.”
-Andrew Jackson
Which is a whole lot like:
"The rich rule over the poor, and the borrower is slave to the lender." Proverbs 22:7
in 2013 the US paid $220,885,000,000 in interest on the debt. The CBO, who always scores costs lower than reality and savings higher, estimates that payment will be more than double that by 2019 ($550 billion). That presumes that current, near zero, interest rates remain where they are as well as massive reductions in deficit spending. Neither is likely.
The current Federal Funds Rate, the rate at which the Federal Reserve lends money to the government, is 0% to .25%. Doubling that rate, doubles the amount of interest that has to be paid. That rate was 4.75% as recently as 2007.
Compare the rate of interest in 2013 to what was spent on Education the same year:
Interest payment: $220 billion
Education: $82 billion
Nearly 4 times. That money could have paid most of the Welfare bill of $397 billion that year.
At 4%, interest on the debt would have been greater than the Defense budget.
If you wonder why the debt is only being considered a threat now, as it seems like we've always had a massive debt, consider this:
The year that the Debt reached 10% of it's current level (chained 2005 $): 1944 (FDR)
The year that the Debt reached 20% of it's current level: 1985 (Reagan)
The year that the Debt reached 30% of it's current level: 1990 (GHW Bush)
The year that the Debt reached 40% of it's current level: 1995 (Clinton)
The year that the Debt reached 50% of it's current level: 2004 (GW Bush)
The year that the Debt reached 60% of it's current level: 2008
The year that the Debt reached 70% of it's current level: 2009 (Obama)
The year that the Debt reached 80% of it's current level: 2010
The year that the Debt reached 90% of it's current level: 2012
Just like household debts, there will come a time, if we do not reign it in, when we are spending so much on interest, that there is no money for the necessities.
U.S. National Debt Clock : Real Time
US National Debt Clock : Real Time U.S. National Debt Clock
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MSG (Join to see)
There's a lot here to unpack, but I'll say this now, I agree on why the FED has not raised interest rates, but there's going to come a time when they have to because no one will buy the debt at such a low rate of return.
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