U.S. debt jumps a record $328 billion — tops $17 trillion for first time

[Madison320]

1). Net debt is the sum of all deficits. It uses the same figure.

I don't know what "net debt" is but the total debt of 17 trillion is not a sum of all deficits. For example during the Clinton years we supposedly ran a surplus yet our total debt increased.

3) QE does not directly impact the deficit- unless it stimulated the economy and tax revenues rose as a result of that. Your statement implies that QE was a success- generating an additional $1 trillion a year for the government.

Success is not the word I'd use! Without QE we'd have much higher interest rates therefore higher interest rate payments so spending would be higher. And without QE we'd have less tax revenue. QE is masking our true situation.

 

[Zippyjuan]

I don't know what "net debt" is but the total debt of 17 trillion is not a sum of all deficits. For example during the Clinton years we supposedly ran a surplus yet our total debt increased. Clinton only had a surplus his last years- not every year and the surpluses were not very large compared to the budget or debt.

Success is not the word I'd use! Without QE we'd have much higher interest rates therefore higher interest rate payments so spending would be higher. And without QE we'd have less tax revenue. QE is masking our true situation.

Yes, net debt (or simply debt) is the sum of all debts (a surplus is subtracted from total debt- deficits are added to it). It is what we have borrowed and not paid off. Then you have to consider fiscal year vs calendar year. The fiscal year runs through October so if they are talking calendar year debt they are counting a different time period.

How does QE increase tax revenues? Only if people earned more money or spent it on taxable activites so they must have earned more money and thus been helped by QE.

Interest on the debt for Fiscal Year 2013 budget was $246 billion. Yes, higher interest rates would mean more payments for interest but not $1 trillion a year more. http://en.wikipedia.org/wiki/2013_United_States_federal_budget

 

[oyarde]

It could be a hundred trillion and nobody would know the difference. At least, nobody's seemed to notice so far. It's all so superficial, like an alternate universe that we're getting news about for some reason. It just doesn't seem real.

Well , really , it is over 100 trillion , the debt does not include all of the stolen Social Security , medicare money and what comes out of your check is spent within a few days ....

 

[Madison320]

How does QE increase tax revenues? Only if people earned more money or spent it on taxable activites so they must have earned more money and thus been helped by QE.

How could QE NOT increase tax revenues? Some of the QE has to be showing up as additional taxable income. Look at all the extra revenue from this mini housing bubble that's being fueled by QE.

How does QE increase tax revenues? Only if people earned more money or spent it on taxable activites so they must have earned more money and thus been helped by QE.

Interest on the debt for Fiscal Year 2013 budget was $246 billion. Yes, higher interest rates would mean more payments for interest but not $1 trillion a year more. http://en.wikipedia.org/wiki/2013_United_States_federal_budget

I think I read recently somewhere that for each 1% rise in interest the interest payment goes up by 200 billlion. QE could easily be lowering rates by 2%. That's 400 billion. So I can easily see the QE boosting tax revenue by 600 billion and lowering spending by 400 billion. That's 1 trillion.