The debt celling and Trump’s math problem

This week the debt ceiling issue comes back. The debt ceiling is the limit put on the national debt by congress. If the debt ceiling is not raised will soon default on the debt  because of the debt ceiling puts a cap on how much the government can borrow. Since debt has interest payments due this cuts into the amount of money the government has each month to spend.

Trump said he would reduce the deficit by ” cutting hundreds of trillions of dollars. But also wants to spend a trillion over ten years. This is where the math problem comes in . He wants to both increase and decrease spending at the same time.

Another issue would be the Entitlements that Trump says he would not cut. They are the biggest cause of increasing deficits over the coming years.

It appears that he is either lying or his he out of touch with reality .

7 thoughts on “The debt celling and Trump’s math problem

  • March 19, 2017 at 09:21
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    The debt ceiling will be raised. I don’t know when or by how much, but I know that it will have to happen.

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    • March 22, 2017 at 12:24
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      if there is a limit on the debt what is the point of evening have one if its always raise? also the real issue what happens when it is raise. What happens is our credit rating goes down.

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    • July 10, 2017 at 22:16
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      the credit rating to of the country , just look at countries with poor credit ratings like Greece . that is the path we are headed

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      • July 14, 2017 at 16:23
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        How can the United State’s credit, as a country, drop they are the currency reserve.
        America can not go broke as long as it producing the funds with no backing.

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        • July 16, 2017 at 11:55
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          it already has dropped twice in the last ten years and may do so again this fall when the debit limit comes back as an issue. When you hear things like default it means to our creditors china, japan and or middle east countries. As our debt grows so does the interest payments.

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        • July 28, 2017 at 19:40
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          the problem is the interest payments are payment and taxes . As the debt goes up so goes the amount of taxes need for interest payments on the debt. More debt also means the value of the currency goes down . You mention no backing. In 1971 we defaulted on the debt due the fact we didn’t have enough go to give to our creditors . ,,,,Yes all countries have a fiat currency but the currency creation is debt which required interest payments.

          Reply

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