Is government repaying debt?

[OHBOY]

I don't quite understand....(???)... this week I see lots of advertisements in which GM brags about repaying their outstanding loan, plus interest... 5 years early, back to the government.

What I keep wondering about: .... what exactly happens to the repayed monies....seems to me that it SHOULD be used to pay back the countries overall debt...b-b-b-b-u-t I never hear anybody speak about applying those funds to reduce the debtburden.....

[banca rotta]

If you are talking about the total US debt of almost 13 trillion this is a toxic debt and can never be paid back except for massive currency devaluation.

The experts keep comparing a nations "debt to GDP" but GDP's not what pays down a nations debt. It's tax revenue.

You have to figure that since the US takes in around 2.2 trillion in taxes per year it's no where near enough to cover the 13 trillion in debt plus the 60 trillion in unfunded liabilities such as SS, Medicare, Medicade.

It would take over 20 years to pay all of these bills and that's if we shut down the govt for the same period.

[OHBOY]

banca rotta:
I understand about overall huge debt. What I am wondering about is the monies that have been repayed, such as the 8.1 billion that GM is bragging to have repayed early....(with 45.3 billion remaining for GM..).
Seems to me that 'things' should be better accounted for and we should be told what has/is happening to the monies that are/have been repayed....?

[banca rotta]

Your question was "Is government repaying debt?" so I thought you were referring to the mother of all sub prime loans that will never be repaid.

As far as GM and the other bailed out companies I hope you aren't naive enough to think any of this will ever be paid back.

I can't answer your question on GM, but I am certain that as any bailout money (some of GM's loans came from TARP) that's being repaid to the treasury will go to another program instead of actually paying down the govt's debt.

As long as Congress approved the original spending even when paid back the president can spend it on another program such as stimulas 2.0 or a "jobs bill".

As always we have been duped!

[OHBOY]

Thanks for your reply !

Actually your reply goes along with my (fuming) thoughts...just think it's something that needs to be periodically brought up.... and, now that GM is making a big deal out of their partial repayment, I wished that the media would make a bigger issue out of the whole 'ball of wax'.....

ghee... even a bk trustee wants to know if there are any expected monies coming in, and if so, those get paid back to creditors....just seems that the government should do the same, and... especially with Nov. just around the corner we should be constantly reminded that they are not...

Needed to vent.....Take care!