[ExI] I Miss The King of Extropia

[spike]

-----Original Message-----
From: extropy-chat [mailto:extropy-chat-bounces at lists.extropy.org] On Behalf
Of rex
Sent: Wednesday, July 20, 2016 12:49 PM
To: extropy-chat at lists.extropy.org
Subject: Re: [ExI] I Miss The King of Extropia

William Flynn Wallace <foozler83 at gmail.com> [2016-07-18 07:29]:
> Spike wrote:
>>    I sure can explain it to you.  If an entity continues to spend more
than
>>    it takes in, and does it long enough, that entity will eventually go
bust.
>>   spike
> 
>    Well, how about those who say that we have been in debt since 1835? 
And
>    what does GDP have to do with it?  And what about the article?  Debt is
a
>    good thing?  I understand what you say, but it seems that that is
>    irrelevant somehow.  I am with you and it scares me.

>...GDP has much to do with it because what matters is debt as a percentage
of income. Absolute debt values are meaningless without a base GDP to
compare the debt with.

>...If GDP increases faster than debt, debt can increase indefinitely
without causing a crisis.

-r
--

Ja.  This is why I worry that politicians don't really understand the
difference between debt and deficit.  If there is a deficit, our debt to GDP
ratio is increasing.

There is another factor here: we always assume growth.  But that assumption
could fail, or could be lower than we had counted on.  Then by borrowing the
future's wealth, we would be robbing the poor and giving to the rich (us.)

We can and should balance the federal budget.

spike