Ask an expert: Why won't US debt woes fade?
MSN Money's Anthony Mirhaydari explains why the nation's fiscal problems are so hard to solve.
In the video below, MSN Money's Anthony Mirhaydari explains why there are no easy fixes to America's debt woes and why the budget mess will be back to punish investors sooner than you might think.
Just like any other debt, America's growing fiscal imbalances have been caused by years of overspending. That is, the government has been spending more than it has been taking in.
Put simply, the government collects money through taxes and fees and spends it on defense, health, education, infrastructure and more. If the revenue the government brings in is not enough to pay its bills, it has to borrow money, usually by issuing bonds. And yes, many of those bonds are foreign owned. In each of the last four years, the government overspent by more than $1 trillion to bring the debt to a total of about $16.4 trillion.
How do we solve this problem? As Mirhaydari explains in the video, it's far from being a simple task. One way is to strengthen the economy so the government can collect more in taxes and spend less in unemployment and other benefits to those who have been hurt by the weak economy.
The other side of the equation is the spending, such as on social security and healthcare, Mirhaydari says. He explains how healthcare spending especially in the U.S. has ballooned and continues to inflate and recommends an investment strategy that fits the current climate.
The discussion about the growing debt and its effect on the economy as well as the current trading environment continues over at MSN Money's Facebook community.
It baffles me that the simplest of math hasnt caused a revolt this country. I think part of it is a large segment of the population doesnt pay attention, gets freebies, and cant wrap their heads around what trillions and trillions really is. It is an abstract. Some times I am able to get family members to relate when I reduce it to a per person basis My younger family members are just starting t get it now that they are starting families of their own.
Over the weekend I outlined how Obamacare will affect them in 2014 and beyond. The were schocked. They thought it meant FREE MEDICAL CARE.Unfortunately, they are like many americans thinking all this debt,taxes, entitlemen programs have little or nothing to do with them. Theyre in for a lof more unpleasant surprises.
And on Social Security and Medicare....
Pretty much the USA is doomed -- which was the whole idea behind the Federal Reserve after all to crush the US government
They almost did it in the 1920's and 1930's but realized that they needed the government and American people to be strong and defeat Nazi Germany. Since WWII they have gone back on track to destroying the USA and this is the year they will do the USA in.
Already China and the rest fo the world has abandoned the US dollar and when our imported food which is 40 percent of what we have imported becomes more than people can spend their paychecks on we will strave to death.
Pretty much it's game over. The super rich have pushed the price of farm land north of $50,000 an acre and farmers to make money need it at $100 or less an acre.
As more and more farmers are forced out of farming and it being impossible to get into farming because of the cost of the land and seed stock and fertilizer costs we are going to have to import more and more food when once we feed the world.
And with the collapse of the dollar a hamburger at McDonalds is going to hit $50 bucks very fast and people are going to only be making $7.25 an hour so you figure out what is going to happen.
LIMO....I don't "cash" div checks, I re-invest them, maybe I'm fortunate ??
Gold is doing just fine....A little bit low and stagnating..Get Ready."there's a new day a coming."%%
Healthcare is the most "over bloated beaucracy(sp)" on/or in the face of the American Public..
We have put up with bullshidt for years and paid through the azz...
Healthcare and HEALTH are not free...But, we need to blame the ROOT CAUSE...
And not someone trying to change it....
They have talked and given lip-service for 3-4 decades....And we have all bought it..
If the AMA and big Pharma don't like it;...Let's start importing from somewhere else..
We have been screwed too long..
Okay now, those may or may not be on the right blog....Damn you guys get sidetracked easily..?
Lookee, lookee; There's a fat guy standing in the corner...He's wearing a funny hat..Lookee.
For 8 years the far right said "the budget doesn`t matter".Bush didn`t put the wars on the
budget.Our mostly far right media these days don`t tell us that.
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