Military Review

The play entitled "Revision of the ceiling of the US public debt"

21
The play entitled "Revision of the ceiling of the US public debt"
The next act of the play, entitled “Revision of the US Public Debt Ceiling”, which has been played in Washington for several decades, has ended. For almost three weeks, the central theme of the world media was a budget crisis and a possible default by the United States. In one bundle, two problems were considered: the lack of a state budget from the state with October 1 and the exhaustion of the limit of government borrowing.
Only late in the evening on October 12, local time, the House of Representatives of the United States approved a compromise budget project, which allows raising the country's debt ceiling and thus avoiding a technical default and resuming the work of government agencies. 16 congressmen voted for the bill, 285 voted against. Earlier, on October 144, this document was approved by the US Senate.


The main idea of ​​the play: America can and should increase its government borrowing. This idea has already mastered the masses. People were told that there is no other way out of the budget crisis. Like, if the ceiling is raised, the US government will be able to place a new batch of treasury securities inside the country and abroad, receive the necessary money and form the federal budget at the expense of these investments.The question of whether it is necessary or not necessary to raise the national debt ceiling is not even discussed ... All disputes and discussions revolve around private issues. What could (should) be a new debt ceiling? What will Republicans be able to bargain in exchange for their consent to raise the ceiling? Should not the ceiling be lifted and the national debt be increased without thinking?

The need to raise the US government debt ceiling is recognized by both major political parties in America; Wall Street and the City of London have called out for its immediate review. These appeals were joined by countries such as China and Japan, which together hold US Treasury securities worth about 2,4 trillion. dollars and fear that these papers will depreciate. In addition, the Fitch rating agency also called, which warned of a possible downgrade of America. The International Monetary Fund pushed for a revision of the borrowing limit, where it is rightly believed that the so-called “technical default” on the obligations of the US government would provoke a global financial crisis.

Few opponents who criticize the policy of increasing government borrowing point out that public debt has been growing exponentially in recent decades. If we extrapolate past trends in changes in public debt in the medium and long term, the American economy should collapse. State debt is the result of an unbalanced federal budget. The value of the public debt of the United States at any given time is the cumulative total of deficits and budget surpluses of all previous years. For stories America’s federal budget has often been deficient. However, then came the times of surplus budgets, due to which it was possible to repay part of the public debt. For example, from the end of the 1930's to the middle of the 1940's. America had large federal budget deficits, which was due to a multiple increase in military spending. National debt steadily increased. If in 1930 it was 16,6% of GDP, in 1940 it was already equal to 52,4% of GDP, and in 1946 it reached a record (and so far unsurpassed) bar in 121,2% of GDP. The reduction of budgets with a surplus after the end of World War II allowed America to begin a smooth decrease in the relative level of public debt: in 1950, it was equal to 94,0%, in 1960g. - 56,0%, and in 1970 - 37,6%.

America has entered a phase of chronic budget deficits since the end of the 1960s. They were provoked by the US war in Vietnam and the rapid increase in military spending. With the arrival of President Reagan in the White House, Washington proclaimed a new economic policy, which later became known as "Reaganomics." An important element of this policy was just the growth of public debt. If in 1980, the US national debt was equal to 909 billion dollars, in 1990, it already amounted to 3206 billion dollars, i.e. increased by 3,5 times. In relative terms, public debt in this period increased from 33,4% to 55,9% of GDP. Some bona fide American economists have noticed that at this time economic growth in America had completely stopped. The figures for US GDP growth shown by official statistics are a total bluff. These figures do not show an increase in the production of goods and services, but an increase in their consumption. These are goods and services that America acquires through borrowing from other countries.

Over the past 45 years, America has only four times had a budget in excess of tax revenues over expenditures. These were the years of B. Clinton’s presidency: 1998, 1999, 2000, 2001. During these years, there was a respite in the buildup of public debt and even a slight decrease in its relative (not absolute) level. So, in 2000, it was equal to 58,0%, and in 2001, it was 57,4%.


The past decade is a period of pronounced growth in public debt. In 2001, in absolute terms, debt amounted to 5,77 trillion. dollars, and in 2011 g. - 15,14 trillion. dollars, an increase in 2,6 times. In relative terms, debt increased from 57,4% to 100,0% of GDP. The American economy under the presidents of J. Bush Jr. and B. Obama finally hooked on the needle of borrowing, lost development incentives. In the summer of 2011, some sober-minded Republicans were then able to insist that raising the ceiling to 2,5 trillion. dollars must be accompanied by the obligation of the administration and the democrats supporting the president to reduce the total federal budget expenditures by the same amount for the duration of the debt limit. The administration of this promise did not fulfill, which aggravated the confrontation on Capitol Hill in October of this year.

Some believe that not only reduce, but even freeze the level of US government debt is no longer possible. However, it is not. Over the past five years, the annual federal budget deficit has steadily exceeded 1 trillion. This is, roughly speaking, approximately 1 / 3 federal budget expenditures. So, if the federal government does not resort to borrowing, then to ensure a balanced budget it is necessary to reduce costs by about 1 / 3. The calculations of experts show that such a reduction is quite possible. And for this you do not even need to reach the "technical default".

Unfortunately, alternative ways for America to get out of the fiscal crisis were not discussed either on Capitol Hill or in the American media. Experts know these options: a) increase the tax base of the budget; b) budget cuts; c) coverage of the budget deficit with the help of money issue organized by the treasury (issue of treasury notes).

Most US congressmen have a very short memory. They do not even remember some of the laws that were recently passed in the United States. First of all, this is the Law on a balanced budget and emergency deficit control adopted in 1985. It is also called the Gramm-Rudman-Hollings Law (Gramm-Rudman-Hollings Act). The law restricted the adoption of acts that increase spending and reduce income, inclusive of up to 1998. Subsequently, the law was supplemented by a general budget approval law of 1993. No one has repealed this law, but for some reason they don’t recall it today.

With political will, the president and the US Congress could not only freeze the level of US government debt, but even begin to reduce it. There are enough precedents in American history. One of them is a reduction in the absolute size of the public debt after the end of the Second World War. An even more impressive example relates to the 30 years of the 19th century, when President Andrew Jackson, an ardent opponent of the creation of a central bank in the United States, entered the history of his country not only by managing to close the central bank that existed at that time, but also by thanks to decisive measures to bring the US national debt to zero. Today in America they do not often remember their legendary Andrew Jackson. In fact, the national hero of America was in the information blockade. But the story of the struggle of Andrew Jackson against the bankers could open the eyes of Americans to the events of October 2013, on Capitol Hill. It would be clear why some options for overcoming the financial and banking crisis were discussed and others were silenced in every possible way. The answer is simple: because The decision, just taken by the US Congress, is dictated by the owners of the Federal Reserve System. Public debt is an effective tool by which financial oligarchs keep under their control both the president, the government, and the “people's elected representatives”.
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http://www.fondsk.ru/news/2013/10/18/spektakl-pod-nazvaniem-peresmotr-potolka-gosudarstvennogo-dolga-usa-23463.html
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  1. domokl
    domokl 23 October 2013 08: 06
    +3
    This performance is reminiscent of catching flies with Velcro ... A paw hit, and then little by little and the whole fly crawls into glue. And in the end, it is a painful death. As their dollar expects, unlike our buck laughing (summed up)
    1. Tersky
      Tersky 23 October 2013 09: 00
      +7
      Quote: domokl
      This performance is reminiscent of fly fishing with Velcro ...

      Alexander, hi ! Much easier
    2. Asgard
      Asgard 23 October 2013 09: 05
      +7
      Oh Sasha Humor you have black ....
      As for our "bucks" ... Here recently Dvorkovich said that Russia should pay for the financial stability of the United States ...
      Then the so-called "budget rule" which sterilizes a significant part of the oil and gas revenues of the Russian Federation in the reserve fund in the Treasury bonds of the Fed in US dollars ...Yes, and Putin said, they say we did not earn this money .....

      So this money will not be returned to us and no one will demand it back
      at least the above listed characters ...
      Yes, and really EVERYTHING will soon be bogged down, debts will be forgiven, Turkey will be bombed with Syria- ||| World War II))))
      And the mass of conflicts of border and civil wars ....
      That's what the above-mentioned SPEECHES lead to))))
      In order not to get caught like a Fly (in your comment)) download the muscle (POWER is a priceless currency)))
      and brains to turn it into goods, life and prosperity ....
      And if you find BALANCE between power and brains, then STABILITY awaits you ...


      What can you say about our Kremlin (ble) leadership ....
      There are no brains at all))) look at Medvedev-Dvorkovich)))))
      The power is meltinglast conflict in Biryulyovo showed very brightly ...
      And if there are THREE such centers, then the People will ask questions of both the Police and the FSB and the Prosecutors and the Judges (not everyone will have time to leave)))

      After THIS we will start printing the "bucks" uploaded to the Fed and here we will prosper ...
      (but swing the muscle, meaningfully))))
      1. APES
        APES 23 October 2013 12: 54
        +1
        I think that all interested people understand (and for a long time) that the existing financial situation requires an immediate solution - exit. Frantically looking for a way out - there are only two scenarios:
        1. World war - under which all debts will be written off
        2. The creation of regional monetary centers is a multipolar world.
        The first scenario is not profitable (even disastrous) for Russia and China (maybe only for now)
        Accordingly, they are trying to implement the second, and for this, everything possible is being done to delay - to prevent the Great War, including the forced support of America's pants. All these candy wrappers placed in US Treasury bills for both Russia and China are nothing compared to the stakes that are at stake.
        1. Asgard
          Asgard 23 October 2013 15: 16
          0
          Before introducing regional currencies, you need a BOOM (a ram with a chipper))))
          Then you need to deal with your populations !!!!! ????? Civil wars cannot be avoided !!!!
          So many conflicts -SECURED ALREADY .......
          There is an understanding that modifying the existing system is a delay of the end-there will be no development !!!!!
          Well, we must make the responsibility of the committee300, the tripartite commission with the extremities drilling with an electric drill ....

          (maybe something else interesting will tell))))))
    3. Far East
      Far East 23 October 2013 13: 53
      0
      Quote: domokl
      This performance is reminiscent of fly fishing with Velcro ...

      but we already don’t want the most in this TAPE! and there is NO exit! hi
  2. Sergeant
    Sergeant 23 October 2013 08: 18
    +8
    ... America only four times had a budget with excess tax revenues over expenses. These were the years of B. Clinton's presidency: 1998, 1999, 2000, 2001.


    Probably due to the robbery of Russia! angry
    1. Trapperxnumx
      Trapperxnumx 23 October 2013 10: 36
      +1
      Yes her, there Monica tried ...
    2. silver_roman
      silver_roman 23 October 2013 13: 14
      +1
      by itself. Thanks to the collapse of the USSR, all this cathic crap * could still stretch at least to this day. And in the 98th, there was just a hard collapse of the ruble when millions of people went out of business. + Syshya started to save a little loot on weapons. There was no sense in having such a huge military machine.
      Recently I read that so far at the nuclear power plant in Syshya, uranium was exported at one time from the USSR. I don’t know how true this is, but it says a lot.
  3. Valery Neonov
    23 October 2013 08: 26
    +5
    US GDP growth figures, shown by official statistics, are a complete bluff.- The United States only has something left to bluff. And what prevents, for example, the PRC (since Japan is an ally of the United States) turning to amers to pay for treasury bonds and not with paper dollars, but let's say in kind, I don’t know, with industrial facilities, land plots (imagine them area wink ), as in this time the Americans will get out ...
  4. Selevc
    Selevc 23 October 2013 08: 33
    +2
    Even in the relatively recent time, namely in the 60s, dollars were provided with gold ... And a million dollars of the 1960s model is about 20 million modern ... And even then they printed more bucks than really provided with gold ... At the end of 60 there was a funny incident - when De Gaulle brought to America a whole steamer stuffed with bucks and demanded to exchange them for gold - America was in an extremely delicate situation ... And if, after the French, others bring them their bucks? But Nixon came up with a brilliant way out of the situation - he simply took and untied the dollar from gold ... And after that, the States began to gradually flood the whole world with their green paper, which was completely unsecured ...

    And if only 15 years ago America’s foreign debt was 5 trillion. now it’s already off scale for 16 — and there is a clear acceleration in the rate of growth of debt ... And if the dollar collapses - (and it collapses, since money cannot be printed endlessly - even if the United States does) - then America’s economy will immediately fall into a bottomless hole ... After all, they will have to live abruptly within their means, and they already forgot how it is - and when a freebie ends, it is so painful and insulting :))) And no one will get rich, except for a narrow circle of speculators and schemers - both rich and poor will lose ... The rich have a chance to partially preserve their wealth by investing until late in money in real estate, gold, natural resources and other long-playing projects ...
    Those who believe that the dollar is constantly getting more expensive - remember how much the apartment cost in bucks in the 90s and how much it costs now !!! And this is not so much the apartment has risen in price - it's more the dollar depreciated ...

    And after the dollar, the euro will collapse on the second day - because the euro is a completely artificial and unattached financial entity - which is already very cracking even at a prosperous Europe ...
    With regard to the Euro, Britain has been smarter than all - they have one foot in the European Union and type in a single Europe, but formally but in fact they simply have more leverage over European processes and can always, in extreme cases, distance themselves from processes taking place on the continent ... With the introduction of the euro, Britain and did not give up their pound - and if the depreciation occurs, the Euro will lose less than others ...
  5. Sergeant
    Sergeant 23 October 2013 08: 35
    +4
    ... an effective tool by which financial oligarchs control both the president, the government, and the “people's representatives”.

    It is possible that the "Central Bank of Russia" is organized according to "type and likeness" taking into account "rich experience" ... sad
  6. Standard Oil
    Standard Oil 23 October 2013 09: 18
    +4
    How long do you think a president who makes Americans live within their means will last? And can such a person become the president of the United States in principle? And what's the point of becoming president of the United States at all, if all power over the country and the world is concentrated in a group of financial oligarchs? come cool, just a bullet and a funeral for the state account. A very interesting topic, by the way, is the story of the struggle of world capital to create a nest for itself in the United States. But throughout the 1913th century, their "attacks" on creating a central bank in the United States were fought off by Americans, until in 23 The Americans did not capitulate. On December 100, we will celebrate the XNUMXth anniversary after all.
  7. andruha70
    andruha70 23 October 2013 09: 59
    +2
    Only late in the evening on October 16, local time, the House of Representatives of the US Congress approved a compromise draft budget, which allows to increase the ceiling of the state debt of the country and thus avoid technical default
    maybe it's enough to post any crap, on the subject of "compromise draft budget", it was a no brainer that they would raise tongue (Well, what kind of "smart guy" voluntarily admits that he is bankrupt? And his whole "philosophy" is not worth a damn? negative ) here it is necessary to post-questions and discussions-on the subject of how-these same "clever men" -not to let unleash-the third world war-that would write off their longs. py.sy.-Japs- "pleased" -the biggest debts-but still there ... lol
  8. Dwarfik
    Dwarfik 23 October 2013 10: 07
    +3
    and they will increase to infinity, and what’s in it, live and raise, and the floor of the world works for you! Hurry.
  9. SPLV
    SPLV 23 October 2013 11: 30
    +2
    But the main thing for us is to force the government to pass laws aimed at developing our own agriculture and our own industry. Since sooner or later, state exchanges will collapse. It’s not good for anyone. But only those who survive can feed and protect themselves.
  10. kartalovkolya
    kartalovkolya 23 October 2013 11: 48
    +1
    We found ourselves in exactly the same financial networks as America. Banker spiders have braided the whole world with a poisonous web in the form of laws favorable to themselves, and the WTO is one of the most effective tools for managing and robbing the world! And our Central Bank is a Western-controlled structure and strictly guided by the instructions of the world banking mafia! And who will allow you to invest in the real economy of Russia? It’s more expensive for yourself, it’s better to let comprador oligarchs plunder! And the USA will solve the problems and will solve it by robbing the whole world, including us!
    1. teleset
      teleset 23 October 2013 13: 25
      0
      The financial system in America can grow only through the expansion of it itself, as soon as the last country in the world falls and a branch of the Federal Reserve is established there, this system will come to an end since there will be nowhere to develop.
  11. Russ69
    Russ69 23 October 2013 12: 02
    +1
    Raised the debt ceiling by another one and a half trillion for the last time. and on the very first day they occupied 283 billion. No matter how you say it, but America is driving itself into a corner. You can’t print and borrow money forever. That’s all right, of course. Moreover, in order to save the dollar, again, America needs to do a damn thing ...
  12. Silkway0026
    Silkway0026 23 October 2013 13: 58
    +3
    Listen, well, when does the same crap end? provoke ...
  13. Sars
    Sars 23 October 2013 14: 16
    +1
    Quote: Valery Neonov
    appeal to amers to pay on treasury bonds and not paper dollar, but let's say in kind


    The Americans have already come up with a way out of this situation - stamping coins worth 1 000 000 000 USD !!!!
    This kind of goods will be rolled off to the Medvedev-Dvorkovichs and other Shenderovichs, you see, Russia is finally sold.
  14. washi
    washi 23 October 2013 14: 36
    0
    But I’m just wondering: Why didn’t the debts of the Russian Federation be exchanged for US debt, and what can the United States offer as payment for its debts (I am interested in the territories in the Pacific Ocean (Okinawa, Guam, Hawaiian Islands, Alaska), bases in Saudi Arabia, Germany)
  15. Ivanovich47
    Ivanovich47 23 October 2013 15: 11
    0
    I wonder when government borrowing will cease and America will live on its hard-earned money. Or do they expect to constantly live off the contributions of other states? Many countries live on credit, but this cannot go on indefinitely. So there must be some kind of disaster that "will liquidate all American debt?"