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Honored Advisor

Dave Ramsay explains our debt

Thanksmto a very dear friend, who takes the time to find such things and share them with me, I just read Ramsey's explanation of our national debt crisis, in terms the average person can understand:

We are like a family that earns $58,000 a year, but spends $75,000, and has $327,000 in credit card debt. we have proposed massive spending cuts, to reduce our spending to $72,000 a year.

Given this perspective, I think we can see just how screwed we all may be. It is a wonder, in light of this information, that we only got downgraded to AA+...this time!

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9 Replies
Veteran Advisor

Re: Dave Ramsay explains our debt

Just caught Dave Ramsey a couple of times on the radio, but he seems to be better than most of the so called financial guru's.

 

I think his comparison is apt, and he would or did undoubtably say that we need to get the spending in line, cut up the credit cards....ie stop borrowing...and then take on a second job ( more taxes.)

 

If the country continues to spend like a drunken sailor, which is what we are doing each and every day, there is no hope. Idle talk of tax increases won't get us out of this hole...first we have to attack the problem, prolific spending by our elected officials.

 

We really don't need to study the mating habits of the south sea snail, and we sure don't need to send money to places that hate us, or research dollars to China that we owe over a trillion dollars to.

 

Our military could and should be cut in half, the foreign wars should end now, and subsidies like ag, and social welfare programs should be eliminated, means tested, or both.

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Honored Advisor

Re: Dave Ramsay explains our debt

In my volunteer work, I cross paths with a pretty good number of science wonks. They are very earnest about their research and cannot really understand why there are limits on spending for it. I tend to be the business person/ ag person in the room, and I always have questions about cost:benefit relationship of what is spent: what that knowledge is worth.

There are, of course, programs where solving one aspect of a process like space travel spins off hundreds or even thousands of useful applications, although realizing them may take time. In so many words, cost occurs in say 1975, and benefit isn't widespread
until 2005. We cannot expect immediate reward in every instance; still, there is a lot of research that, to you and me as laypeople, looks like it's being done for the hell of it.

I can see the higher virtue being in applying the things we already know, to save us from wasting money...energy audits and retrofits for our schools, for instance. The thing about cutting research dollars is that all those Ph.D. Candidates won't have anything to work up dissertations on, if we don't provide grants and stipends for furthering research of dubious value to society.

Lots of logic loops in this whole arena of discussion. With home equity gone, student loan debt is going to have to find somewhere else to park it's security needs, don't you think?
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Senior Advisor

Re: Dave Ramsay explains our debt

Have our research grants to China provided the info on computer hacking that is going on----our "free trade policies" continue to be the laughing stalk behind closed doors---in the process of taking care of an elderly relative our Medicare situation is a $$$$ blackhole---also Dave Ram has had an economic tsunami in his life--nothing like experience for the best driver in education--- 

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Frequent Contributor

Re: Dave Ramsay explains our debt

Anyone who knows arithmatic can explain debt, but even someone like the guru Ramsey can't explain how to resolve this debt crisis and recover our nation.

I quit posting years ago when I got such negative respones from producers with the attitude of borrowing capitol for day to day operation and accecpting whatever subsidy your government would hand out to you under whatever new farm policy was passed.

The whole process of banking and politics closed farm product markets killed small individual producers.

 

But what goes around comes around, and there is no trillion $$ TARP safety net to print yourself out with this time.

Hope there are some producers left that actually have title of posession to something to farm on, or mass African famine will occur here as well.

 

Too late to preach now; Tom S. in Tn.

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Honored Advisor

Re: Dave Ramsay explains our debt

That's what worries me, quite frankly.  I am not a routine Ramsay fan, but have seen his spiel often enough to know he can tell individuals how to "plan the work and work the plan" to financial recovery. 

 

When he says something is hopeless, it is pretty well shot to Hades in a handbasket.  The rest of the quote my friend posted was not all all hopeful. 

 

I am more troubled by the post on chinese farmers leaving half their acres untilled, which someone lese put up a few days back...I have searched for that info online, and cannot find it.  Would love it if someone could give us a link to the story. 

 

I cannot grasp any reasonable scenario under which such a management decision makes any sense whatsoever.  If they elected to leverage us and our food supply with this debt, we would be in  a world of hurt. 

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Senior Advisor

Re: Dave Ramsay explains our debt

I think research grants to discover and improve new technologies is a laudable effort but spending billions to fund interplanetary travel and then justifying it by the discovery of Corningware and Tang is a bit ludicrous.

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Senior Contributor

Re: Dave Ramsay explains our debt

there are worriers

and those who just see it as it is.

 

how long has ramsey been worried about US debt?

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Honored Advisor

Re: Dave Ramsay explains our debt

I wouldn't know...as I said, a friend posted this to me on FB. I've watched his show maybe a handful of times, and then probably jut nits and pieces of it.

I think his quantifying the nation's situation in terms that everyone can grasp is a useful thing, whether he got concerned da decade ago or just last week. In a graduate science methods class I once took for my teaching position, we did a scale model of the solar system.

It is really difficult for a lot of people to relate to the magnitude of numbers involved in that one, and you are working in millions
places...with the national debt, we are in well over fourteen trillion now. No way to map that one out and be able to be the folks at the other end of the tape measure, so to speak.

Given a relatively simple analysis, anyone could see that our spending is unsustainable.
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Advisor

Re: Dave Ramsay explains our debt

If everything you said were to actually ocurr, then I would be willing to see agriculture pay its fair share in the cuts.  Until then, you can't begin to wring out enough blood in this turnip to amount to a hill of beans.

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