U.S. Federal Debt Assignment | Homework Help Websites
Can the U.S. Federal Debt Ever be Repaid?
Due Date:
Wednes
day
January
30, 201
9…
…however
, I will
probably
start
Project #4 on Monday
Jan 28
About
four years
ago, Simon Black, of “Sovereign Man” blog, published an article (and
accompanying YouTube video) titled “Paying down the debt is now almost mathematically
impossible.” While the spreadsheet model is shown in the video, it isn’t published anywhere,
and th
ere is insufficient information to replicate the results.
Accordingly, in this assignment, you will create a spreadsheet to assess whether the U.S. can, in
fact, ever repay its debts under plausible conditions.
http://www.sovereignman.com/trends/paying
-down
-the
-debt
-is-now
-almost
-mathematically
–
impossible
-15729/
This project is all about making assumptions
, justifying/explaining them, and the
n performing
sensitivity analyses.
At a minimum:
1.
You need to provide two
or more default criteria.
•
One pretty obvious one is when gross
mandatory expenditures (including
interest) exceed gross revenues.
2.
You need to deter
mine which type of debt you’re examining –
debt
held by the public,
or gross debt, or both.
3.
You need to make tax revenue assumptions.
4.
You need to make assumptions about GDP growth rates.
5.
You need to make assumptions about interest rates on existing and/
or new debt.
6.
You need to make assumptions about growth rates of assorted federal programs.
Your a
ctual write
-up will include a description of the current debt situation, a discussion of your
methodology including assumptions, discussion of re
sults including several sensitivity analyses,
and your opinion as to whether the U.S. federal debt can ever be repaid. I do
NOT
want a
spreadsheet. I DO
want charts and tabulated results, as appropriate.
