Ladas wrote:
Arathain Kelvar wrote:
Sure it does. I'm not comparing how or if they can make payments, I'm comparing the debt to income ratios. You keep talking about whether I can make my payments like it affects debt to income ratio.
In other words, if you look at the two ratios, and if they were identical, AND if I can make my payments, THEN the Fed should be reasonably likely to make theirs (or be reasonably close).
But the ratios aren't the same. So you're comparison of whether or not we can both make our payments doesn't make any sense.
I just demonstrated why this isn't the case. Income, as an aggregate as you stated earlier, does not give a satisfactory picture of actual disposable income allocations, so there is no way to be able to claim because one entity has sufficient funds to service the debt that another does with the same income to debt ratio, since you aren't considering the ratio of discretionary income to disposable income.
The Fed has no discretionary income at all, and doesn't have enough of what would be considered disposable income in this analogy to cover annual costs.
What was that comment you made to Khross about questionable understanding of household finances?
I see, you're getting a bit off topic. I'm talking about DEBT TO INCOME RATIOS. I've also made it very clear that it's not directly comparable. I'm not sure why you're going down the expense road when that's not what I'm discussing.
I can come up with a whole host of things that are different between my personal finances and the Fed's. For example, they can raise revenue. They can print money. They can do a whole lot of things I can't. But since I'm not talking about these, it doesn't matter.
So I'm comparing DEBT TO INCOME RATIOs. They are comparable, but no - not the same. Can it be simplified enough to say that the % of disposable income is the same if the ratios are the same? Of course not. But neither are any two households. I suppose you are suggesting then that no two households are comparable. That's fine - I disagree.