Topic: Debt Capacity Calculator

[Weisshaupt]

Political Calculations has posted debt capacity calculator and calculates the US can have a GDP ratio of 395%  before we will be in the state of Greece.

He comes up with almost 400%  -- but then things change very rapidly if you assume GDP of around 1%  growth or lower..

[Libertas]

There is only a buttload of assumptions built into each number, but GDP growth rates are trending down, debt service is never going to drop and massive tax increases tend to send people running so revenues take a huge dip, interest rates are artificial and knowing what a reasonable time horizon is I find kind of hilarious too.  As with anything using government numbers...one turd is the same as another...reality will be heard when all else is rendered to stupefied silence...

[Weisshaupt]

There is only a buttload of assumptions built into each number, but GDP growth rates are trending down, debt service is never going to drop and massive tax increases tend to send people running so revenues take a huge dip, interest rates are artificial and knowing what a reasonable time horizon is I find kind of hilarious too.  As with anything using government numbers...one turd is the same as another...reality will be heard when all else is rendered to stupefied silence...

Yeah,  it was just another datapoint.. overly optimistic in my opinion.. but this guy always gives you a tool to run your own numbers,  which seems to yield out expected results when more realistic figures are entered.

[Libertas]

There is only a buttload of assumptions built into each number, but GDP growth rates are trending down, debt service is never going to drop and massive tax increases tend to send people running so revenues take a huge dip, interest rates are artificial and knowing what a reasonable time horizon is I find kind of hilarious too.  As with anything using government numbers...one turd is the same as another...reality will be heard when all else is rendered to stupefied silence...

Yeah,  it was just another datapoint.. overly optimistic in my opinion.. but this guy always gives you a tool to run your own numbers,  which seems to yield out expected results when more realistic figures are entered.

And the timing is always an issue, integrity of numbers aside, all things being equal it will only be a snapshot in time, and since the Fed Sorcerers and Wall St Casino Minions have most every game rigged...the chances are almost certain that a break happens with little predictive warnings, except from the usual counter-culture Wizards outside The System...