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Debt problem


Last Edited: July 29, 2011, 8:52 am

I am not an economist but to pay the current monthly obligations or any monthly obligation when credit is available I can see one option.

With debt due in full plus interest and the monthly revenue the gov't takes in they need to cut expenses to cover the interest. Pay the full obligation plus interest with expense cutting to cover interest. Immediately sell new debt bonds or notes to cover the principle paid prior.

With the Gov't bailing out these financial institutions they could help in this matter.

Pay off, sell new bonds or notes, Debt limit not increased.

It will need to be a timely maneuver on the paying and reborrowing. Better make sure they have buyers for new bonds or notes.

Now they will need to get their budget in order on cutting here and there to operate with only revenue taken in and to pay down the principle.

They are not going to like cutting here and there. When in debt you work your way out of it.

I seen a headline this am where bondholders are going to be priority. Pay the bonds and reborrow.

Entry #1,554


sully16Comment by sully16 - July 29, 2011, 8:47 am
Good common sense, but you can't destroy a government or it's currency by using common sense. seems like they are puposely trying to de-value the dollar.
JAP69Comment by JAP69 - July 29, 2011, 8:58 am
You are right sully
I seen a headline on drudge where tea partiers may be shaking up the establishment in DC.
JAP69Comment by JAP69 - July 29, 2011, 9:32 am
They say Pres Clinton ended up balancing the budget. This administration can do the same.
Comment by scorpio - July 29, 2011, 10:31 am
they want us all to suffer,sacrifice,cut back,while the wealthy go on with their lives like nothing has happened and are happy,enjoying their yachts,airplanes,and fancy cars!
JAP69Comment by JAP69 - July 29, 2011, 11:18 am
I am quite sure many of the rich and wealthy started with a lot less than what they have now. A lot less.
America, the land of opportunity. At least it use to be.
sully16Comment by sully16 - July 29, 2011, 2:40 pm
You can't blame the wealthy for the abuses of the people who have been elected to do what right, and they are not doing whats right. I am not going to spend my time being jealous of someone who has more, because their are people who have life a whole lot worse.
Diverting the problems of big government mis-mangement and blaming the wealthy is getting old and tiresome, they continue to shift the blame ,only American aren't as stupid as they like to think.
The only people who want us to sacrifice are the people most eager to rob us blind.
MADDOG10Comment by MADDOG10 - July 30, 2011, 7:44 pm
Absolutely Sully,
That's exactly what this Government is doing..!

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