What caused this spike in national debt?

N

NoDrama

Well-Known Member
Padawanbater2 said:
That spike takes place way after Vietnam

Spike begins ~1972
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1972 is way after 1975? did you think it happened in 1975 B.C.????
WOOPS
Saigon fell in april 30th, 1975.

so whatever it was must have begun in the year 1972 and only the year 1972?

What delusion are you trying to entertain here?

You ever buy something on credit? Enjoy now, pay later? You ever do something like that? The effect of your purchase sometimes isn't felt until years later, you know, interest and all.
If the USA couldn't actually afford to buy all those bombs with cash on hand, what did they do? Did they sell something called a US bond? Ya think? Who bought the bonds? Whatever it is that you think is responsible doesn't have to start in 1972. If you want to be like a bucky, then just blame Richard Milhouse Nixon. For whatever reason. He was president at the time so it all lays squarely at his feet. Ever since he demonetized gold and closed the gold window, we have been a purely fiat currency since then, and alas the whole world became so.

Do you understand how money is created in the USA? or for the worldwide system of reserve banking? Do ya know how it works?
 
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Padawanbater2

Padawanbater2

Well-Known Member
NoDrama said:
1972 is way after 1975? did you think it happened in 1975 B.C.????
WOOPS
Saigon fell in april 30th, 1975.

so whatever it was must have begun in the year 1972 and only the year 1972?

What delusion are you trying to entertain here?

You ever buy something on credit? Enjoy now, pay later? You ever do something like that? The effect of your purchase sometimes isn't felt until years later, you know, interest and all.
If the USA couldn't actually afford to buy all those bombs with cash on hand, what did they do? Did they sell something called a US bond? Ya think? Who bought the bonds? Whatever it is that you think is responsible doesn't have to start in 1972. If you want to be like a bucky, then just blame Richard Milhouse Nixon. For whatever reason. He was president at the time so it all lays squarely at his feet. Ever since he demonetized gold and closed the gold window, we have been a purely fiat currency since then, and alas the whole world became so.

Do you understand how money is created in the USA? or for the worldwide system of reserve banking? Do ya know how it works?
Click to expand...


Take another look at the graph, it shows the country paying off the debt incurred during the Revolution, then the little blip covering the War of 1812, debt free under Jackson, small blip for Mexican American War, then the Civil War starts and the debt increases around the same time, 1861, then after reconstruction the debt falls until WWI, climbs again during the great depression and skyrockets during WWII. You can then see another small blip for Korea, 1950-1953 and one for Vietnam, 1955-1975 on the way back down to the mid 1970's. Then, with no active war taking place the debt begins to rise again.

So using this information, it's consistent to conclude the spikes in debt that are incurred from wars take place right around the same date, the exceptions being the great depression and the '08 financial crisis. The oil crisis took place in 1973, but there's no direct correlation between that and the highlighted peak of debt taking place between ~1973-1996. Also, before this period, after every war we were able to immediately pay down the debt, so something must have fundamentally changed in policy for the debt to continue to rise..

What do you think changed in policy that prevented us from paying down the debt? The sharp decrease beginning around 1997 can likely be attributed to the dot com boom/bust, then the financial crisis took place, and I'm guessing that 'projected' increase will be the student loan boom/bust


Yes I understand how the monetary policy works and how money is created. That system was put in place in 1913 under Woodrow Wilson and doesn't seem to have any correlation to the debt
 
NewtoMJ

NewtoMJ

Well-Known Member
The graph is hard to read. I can't differentiate between 1972 and 75. I can only read the years listed correctly.
 
N

NoDrama

Well-Known Member
Padawanbater2 said:

Yes I understand how the monetary policy works and how money is created. That system was put in place in 1913 under Woodrow Wilson and doesn't seem to have any correlation to the debt
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So how is money created?

What major currency event happened on August 16, 1971?
 
heckler73

heckler73

Well-Known Member
heckler73 said:
When the banking system of the world changed in the early 70s, the ledgers began tallying. The shift was more noticeable and pronounced in Canada.

www.bis.org/events/conf100624/goodhartpaper.pdf

Similarly the 1970s was another confused inter-regnum between the subservience of monetary policies to government control, and the establishment of a free market system, with the Central Bank following a regime of
inflation targetry.
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Hmmm...

 
ginwilly

ginwilly

Well-Known Member
Padawanbater2 said:
Doubtful. Not to mention the program began in 1983, the shift in deficit spending takes place during the 1970's on that graph

"Since its start in the 1980s, the program has cost at least $158 billion, according to official figures, while other estimates put the price tag higher."

http://www.rawstory.com/2013/05/ronald-reagans-star-wars-project-still-hasnt-met-original-goal-30-years-later/
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Without star wars, the Berlin Wall doesn't come down when it does.

When did we go off the gold standard and do you think it had anything to do with exploding deficit spending?
 
UncleBuck

UncleBuck

Well-Known Member
ginwilly said:
Without star wars, the Berlin Wall doesn't come down when it does.

When did we go off the gold standard and do you think it had anything to do with exploding deficit spending?
Click to expand...
which geographic regions didn't evolve from the neck up?
 
desert dude

desert dude

Well-Known Member
Padawanbater2 said:
Doubtful. Not to mention the program began in 1983, the shift in deficit spending takes place during the 1970's on that graph

"Since its start in the 1980s, the program has cost at least $158 billion, according to official figures, while other estimates put the price tag higher."

http://www.rawstory.com/2013/05/ronald-reagans-star-wars-project-still-hasnt-met-original-goal-30-years-later/
Click to expand...
According to my eyes, looking at that graph, the bump started shortly after 1982. Nodrama's post is dead on. It was Ronnie's cold war response to the USSR, and it ultimately bankrupted the commies and ended the cold war. Now, it appears we are on the brink of a revived cold war with Russia and China.
 
UncleBuck

UncleBuck

Well-Known Member
desert dude said:
According to my eyes, looking at that graph, the bump started shortly after 1982. Nodrama's post is dead on. It was Ronnie's cold war response to the USSR, and it ultimately bankrupted the commies and ended the cold war. Now, it appears we are on the brink of a revived cold war with Russia and China.
Click to expand...
you are not a smart man.
 
Padawanbater2

Padawanbater2

Well-Known Member
desert dude said:
According to my eyes, looking at that graph, the bump started shortly after 1982. Nodrama's post is dead on. It was Ronnie's cold war response to the USSR, and it ultimately bankrupted the commies and ended the cold war. Now, it appears we are on the brink of a revived cold war with Russia and China.
Click to expand...
Cold War - 1947-1991
 
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