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Forums - Politics Discussion - Secession can get USA debt-free

Mr Khan on 14 November 2012
HappySqurriel said:
In all likelihood, if secession occurred (and it wasn't done through force) the states that left would likely be forced to take with them a appropriate portion of the federal debt ...

The only way for the United States to become debt free now is (probably) to default on their debt; which is likely going to happen sooner rather than later. Right now mandatory spending and interest paid on the debt is (roughly) equal to the total tax revenues collected by the Federal government, over the next 10 years will grow far faster than tax revenues, and there is no political will to cut this spending; and the United States is heading for a $500 Billion to $1 Trillion deficit before discretionary spending is taken into account. Even with the introduction of cripling tax increases the United States federal government soon can't cover their manditory spending without a deficit.

In all likelihood, we will be looking at massive deficitis funded through debt monetization leading to hyper inflation over the next decade.

If so, we'll likely negotiate some sort of massive international sovereign-debt write-down, because basically no-one is doing well in that regard right now (even China knows that trouble is around the corner for them)



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HappySqurriel on 14 November 2012
Mr Khan said:
HappySqurriel said:
In all likelihood, if secession occurred (and it wasn't done through force) the states that left would likely be forced to take with them a appropriate portion of the federal debt ...

The only way for the United States to become debt free now is (probably) to default on their debt; which is likely going to happen sooner rather than later. Right now mandatory spending and interest paid on the debt is (roughly) equal to the total tax revenues collected by the Federal government, over the next 10 years will grow far faster than tax revenues, and there is no political will to cut this spending; and the United States is heading for a $500 Billion to $1 Trillion deficit before discretionary spending is taken into account. Even with the introduction of cripling tax increases the United States federal government soon can't cover their manditory spending without a deficit.

In all likelihood, we will be looking at massive deficitis funded through debt monetization leading to hyper inflation over the next decade.

If so, we'll likely negotiate some sort of massive international sovereign-debt write-down, because basically no-one is doing well in that regard right now (even China knows that trouble is around the corner for them)

Its possible, but I suspect that writing down mortgage backed securities was a trivial task compared to writing down soverign debt ...



mai on 15 November 2012
Galaki said:

Think about it. When all States, except Washington, seceded, they are all debt-free and they can regroup and create a new US of A.

They don't have to pay anyone back of all those trillions of dollars.

That solves only national debt issue. What about household debts? Like consumer or mortgage?



Wh1pL4shL1ve_007 on 15 November 2012
spurgeonryan said:
I wish canada would just join with us. Dem natural resources!


If they do... DEM CAPTALISM!!!



Yay!!!

RedInker on 15 November 2012

The US could also start to pay back its debts to get debt free. Lol. If a state was to leave the union they would take a portion of the US's debt. The same would happen if Scotland voted on independence in 2014.



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Galaki on 15 November 2012
mai said:
Galaki said:

Think about it. When all States, except Washington, seceded, they are all debt-free and they can regroup and create a new US of A.

They don't have to pay anyone back of all those trillions of dollars.

That solves only national debt issue. What about household debts? Like consumer or mortgage?

One thing at a time. Americans can't multitask.

Plus, my services aren't free after the initial sample.



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kain_kusanagi on 15 November 2012
Gilgamesh said:
spurgeonryan said:
I wish canada would just join with us. Dem natural resources!

Why doesn't USA join Canada, we have better benefits :P

Canada has about 30m people while the USA has over 300m.


I don't think you want that many more people in line for a kidney.



Kasz216 on 15 November 2012
kain_kusanagi said:
Gilgamesh said:
spurgeonryan said:
I wish canada would just join with us. Dem natural resources!

Why doesn't USA join Canada, we have better benefits :P

Canada has about 30m people while the use have over 300m.


I don't think you want that many more people in line for a kidney.

A good way to note Canada's size, is that if Canada was part of the US in 2004.   Bush would of still been reelected. (Granted he would of lost if it was 2000.  but still.)

Canada would only be worth about 50 electoral votes.



kain_kusanagi on 15 November 2012
Kasz216 said:
Gilgamesh said:
spurgeonryan said:
I wish canada would just join with us. Dem natural resources!

Why doesn't USA join Canada, we have better benefits :P

Canada has about 30m people while the USA has over 300m.


I don't think you want that many more people in line for a kidney.

A good way to note Canada's size, is that if Canada was part of the US in 2004.   Bush would of still been reelected. (Granted he would of lost if it was 2000.  but still.)

Canada would only be worth about 50 electoral votes.

I wonder what the population per square mile is of both countries. Theres an enourmouse amount of empty space in the USA, but Canada is freaking huge and mostly empty.



DiscussionTime on 19 November 2012

If they sent all troops back home and just stopped spending money on military, they would be debt free in a few years.