{"id":331,"date":"2011-10-01T22:18:55","date_gmt":"2011-10-02T05:18:55","guid":{"rendered":"http:\/\/www.argee.net\/wordpress\/?p=331"},"modified":"2012-06-01T16:30:45","modified_gmt":"2012-06-01T23:30:45","slug":"will-the-budget-be-balanced-and-the-country-get-out-of-debt-anytime-soon","status":"publish","type":"post","link":"https:\/\/thrawnrickle.com\/?p=331","title":{"rendered":"Will the budget be balanced and the country get out of debt anytime soon?"},"content":{"rendered":"\n\t\t\t\t<div class=\"mr_social_sharing_wrapper\">\n\t\t\t\t<!-- Social Sharing Toolkit v2.2 --><span class=\"mr_social_sharing\"><span style=\"display: inline-block; width: 51px; height: 21px; overflow: hidden;\"><div class=\"fb-like\" data-href=\"https:\/\/thrawnrickle.com\/?p=331\" data-send=\"false\" data-width=\"51\" data-show-faces=\"false\"><\/div><\/span><\/span><span class=\"mr_social_sharing\"><fb:share-button type=\"button\" href=\"https:\/\/thrawnrickle.com\/?p=331\"><\/fb:share-button><\/span><span class=\"mr_social_sharing\"><a href=\"https:\/\/twitter.com\/share\" class=\"twitter-share-button\" data-count=\"none\" data-url=\"https:\/\/thrawnrickle.com\/?p=331\" data-text=\"Will the budget be balanced and the country get out of debt anytime soon?\"><\/a><\/span><span class=\"mr_social_sharing\"><div class=\"g-plusone\" data-size=\"medium\" data-annotation=\"none\" data-href=\"https:\/\/thrawnrickle.com\/?p=331\"><\/div><\/span><span class=\"mr_social_sharing\"><a class=\"mr_social_share_digg\" href=\"http:\/\/digg.com\/submit?url=https%3A%2F%2Fthrawnrickle.com%2F%3Fp%3D331&amp;title=Will+the+budget+be+balanced+and+the+country+get+out+of+debt+anytime+soon%3F\" class=\"mr_social_sharing_popup_link\"><img decoding=\"async\" src=\"https:\/\/thrawnrickle.com\/wp-content\/plugins\/social-sharing-toolkit\/images\/buttons\/digg.png\" class=\"nopin\" alt=\"Digg This\" title=\"Digg This\"\/><\/a><\/span><span class=\"mr_social_sharing\"><a class=\"mr_social_share_reddit\" href=\"http:\/\/www.reddit.com\/submit?url=https%3A%2F%2Fthrawnrickle.com%2F%3Fp%3D331\" class=\"mr_social_sharing_popup_link\"><img decoding=\"async\" src=\"https:\/\/thrawnrickle.com\/wp-content\/plugins\/social-sharing-toolkit\/images\/buttons\/reddit.png\" class=\"nopin\" alt=\"Submit to reddit\" title=\"Submit to reddit\"\/><\/a><\/span><span class=\"mr_social_sharing\"><a rel=\"nofollow\" class=\"linksalpha_button linksalpha_link\" href=\"\/\/www.linksalpha.com\/social\/mobile\" data-url=\"https:\/\/thrawnrickle.com\/?p=331\" data-text=\"Will the budget be balanced and the country get out of debt anytime soon?\" data-desc=\"Let us suppose that the government could reduce the budget deficit to zero. This would mean cutting not just $1.5 Trillion over ten years\u2026but $12 Trillion over the same time period.\u00a0And suppose we could pay $100M per day\u2026every day\u2026to reduce our debt.How long would it take to reduce it to\" data-image=\"\" data-button=\"\">\n\t\t\t\t\t<img decoding=\"async\" src=\"\/\/www.linksalpha.com\/images\/social_share_button.png\" alt=\"Share\" class=\"linksalpha_image\" \/>\n\t\t\t\t\t<\/a><script type=\"text\/javascript\" src=\"\/\/www.linksalpha.com\/scripts\/loader_iconbox.js?v=2.4\"><\/script><\/span><\/div><div>Let us suppose that the government could reduce the budget deficit to zero. This would mean cutting not just $1.5 Trillion over ten years\u2026but $12 Trillion over the same time period.&nbsp;And suppose we could pay $100M per day\u2026every day\u2026to reduce our debt.<\/div>\n<div><\/div>\n<div>How long would it take to reduce it to zero? &nbsp;Answer: &nbsp;over 404 years.<\/div>\n<div><\/div>\n<div>But wait\u2026that assumes a zero interest rate. Presently 10 year treasury bills yield about 2%. If you assume that rate is constant over the next 400+ years, you will have to pay $295B per year in interest over the first years\u2026and since $100M per day only produces $36.5B annually, you can\u2019t get there. $100M per day actually grows the debt over $250B per year in the first years.<\/div>\n<div><\/div>\n<div>So, let\u2019s change the amount and say you could pay $1B per day. That produces $365B per year and pays the interest of $295B and a small reduction in the debt. But\u2026average interest rate on 10 year treasuries over a long period of time is more like 5%. If you assume a 5% rate, you need $738B per year in interest payments alone\u2026and $1B per day allows the debt to continue to grow $370B+ per year in the first years.<\/div>\n<div><\/div>\n<div>Bottom line \u2013 given the size of our national debt, if interest rates ever get back to \u201cnormal,\u201d it would take $2.21 B every day to reduce the debt to zero over 50 years. Remember, this assumes Congress and the Administration can first find $12 Trillion in cuts to government spending to balance the budget over the next 10 years.<\/div>\n","protected":false},"excerpt":{"rendered":"\n\t\t\t\t<div class=\"mr_social_sharing_wrapper\">\n\t\t\t\t<!-- Social Sharing Toolkit v2.2 --><span class=\"mr_social_sharing\"><span style=\"display: inline-block; width: 51px; height: 21px; overflow: hidden;\"><div class=\"fb-like\" data-href=\"https:\/\/thrawnrickle.com\/?p=331\" data-send=\"false\" data-width=\"51\" data-show-faces=\"false\"><\/div><\/span><\/span><span class=\"mr_social_sharing\"><fb:share-button type=\"button\" href=\"https:\/\/thrawnrickle.com\/?p=331\"><\/fb:share-button><\/span><span class=\"mr_social_sharing\"><a href=\"https:\/\/twitter.com\/share\" class=\"twitter-share-button\" data-count=\"none\" data-url=\"https:\/\/thrawnrickle.com\/?p=331\" data-text=\"Will the budget be balanced and the country get out of debt anytime soon?\"><\/a><\/span><span class=\"mr_social_sharing\"><div class=\"g-plusone\" data-size=\"medium\" data-annotation=\"none\" data-href=\"https:\/\/thrawnrickle.com\/?p=331\"><\/div><\/span><span class=\"mr_social_sharing\"><a class=\"mr_social_share_digg\" href=\"http:\/\/digg.com\/submit?url=https%3A%2F%2Fthrawnrickle.com%2F%3Fp%3D331&amp;title=Will+the+budget+be+balanced+and+the+country+get+out+of+debt+anytime+soon%3F\" class=\"mr_social_sharing_popup_link\"><img decoding=\"async\" src=\"https:\/\/thrawnrickle.com\/wp-content\/plugins\/social-sharing-toolkit\/images\/buttons\/digg.png\" class=\"nopin\" alt=\"Digg This\" title=\"Digg This\"\/><\/a><\/span><span class=\"mr_social_sharing\"><a class=\"mr_social_share_reddit\" href=\"http:\/\/www.reddit.com\/submit?url=https%3A%2F%2Fthrawnrickle.com%2F%3Fp%3D331\" class=\"mr_social_sharing_popup_link\"><img decoding=\"async\" src=\"https:\/\/thrawnrickle.com\/wp-content\/plugins\/social-sharing-toolkit\/images\/buttons\/reddit.png\" class=\"nopin\" alt=\"Submit to reddit\" title=\"Submit to reddit\"\/><\/a><\/span><span class=\"mr_social_sharing\"><a rel=\"nofollow\" class=\"linksalpha_button linksalpha_link\" href=\"\/\/www.linksalpha.com\/social\/mobile\" data-url=\"https:\/\/thrawnrickle.com\/?p=331\" data-text=\"Will the budget be balanced and the country get out of debt anytime soon?\" data-desc=\"Let us suppose that the government could reduce the budget deficit to zero. This would mean cutting not just $1.5 Trillion over ten years\u2026but $12 Trillion over the same time period.\u00a0And suppose we could pay $100M per day\u2026every day\u2026to reduce our debt.How long would it take to reduce it to\" data-image=\"\" data-button=\"\">\n\t\t\t\t\t<img decoding=\"async\" src=\"\/\/www.linksalpha.com\/images\/social_share_button.png\" alt=\"Share\" class=\"linksalpha_image\" \/>\n\t\t\t\t\t<\/a><script type=\"text\/javascript\" src=\"\/\/www.linksalpha.com\/scripts\/loader_iconbox.js?v=2.4\"><\/script><\/span><\/div><p>Michael M. Dunn, President\/CEO of the Air Force Association recently penned these words regarding balancing the national budget and getting out of debt.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13,14],"tags":[262,256,255,261,260,257,141,259,264,263,258],"class_list":["post-331","post","type-post","status-publish","format-standard","hentry","category-current-events","category-politics","tag-administration","tag-balanced","tag-budget","tag-congress","tag-cuts","tag-deficit","tag-government","tag-government-spending","tag-michael-dunn","tag-michael-m-dunn","tag-treasury-bills"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/thrawnrickle.com\/index.php?rest_route=\/wp\/v2\/posts\/331","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thrawnrickle.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thrawnrickle.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thrawnrickle.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thrawnrickle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=331"}],"version-history":[{"count":1,"href":"https:\/\/thrawnrickle.com\/index.php?rest_route=\/wp\/v2\/posts\/331\/revisions"}],"predecessor-version":[{"id":462,"href":"https:\/\/thrawnrickle.com\/index.php?rest_route=\/wp\/v2\/posts\/331\/revisions\/462"}],"wp:attachment":[{"href":"https:\/\/thrawnrickle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=331"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thrawnrickle.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=331"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thrawnrickle.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=331"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}