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PicturesOfABetterTomorrow · 41-45, M
@fanuc2013 Still denying objective reality for your orange messiah? Even his own voter base is turning on him. You must be one of the die hard cultists who would turn on their own family for a con man that has no idea you exist and doesn't care now that you outlived your usefulness as a gullible voter.
PicturesOfABetterTomorrow · 41-45, M
@Kypro Not a fan of Trump but if you read up on modern economics like MMT debt doesn't really have that much of an impact on a country. The only caveat is if you are a country that owes that debt in someone else's currency.
For example the US debt would really only be a serious issue if it was owed to say Germany in Euros.
Since the US debt is either to their own country in USD or to other countries in USD it really is not relevant and is a distraction.
In fact even in the US the one time in history that the US paid off it's debt to zero it had zero impact beyond a campaign promise.
For example the US debt would really only be a serious issue if it was owed to say Germany in Euros.
Since the US debt is either to their own country in USD or to other countries in USD it really is not relevant and is a distraction.
In fact even in the US the one time in history that the US paid off it's debt to zero it had zero impact beyond a campaign promise.
PicturesOfABetterTomorrow · 41-45, M
@Kypro Yes. But it is owed in USD so it doesn't matter. They might as well be debts to American expats in terms of the impact.
The currency of the debt is what matters not the geographic location of the bond holder.
The only exception to that is if everyone dumps their bonds but since the US is the issuer of that currency they still have plenty of options to manipulate the currency.
And something Americans don't like to think about but Japan is occupied by the USA and has been for 80 years. That gives the US leverage over their largest bond holder.
The US is also not some country that owes debt in a currency worth 10 times their own currency.
Either way even in a hypothetical situation where countries start dumping bonds it is not something that can be fixed with austerity.
Hell even the IMF issued policy paper a few years back admitting austerity is a scam.
The currency of the debt is what matters not the geographic location of the bond holder.
The only exception to that is if everyone dumps their bonds but since the US is the issuer of that currency they still have plenty of options to manipulate the currency.
And something Americans don't like to think about but Japan is occupied by the USA and has been for 80 years. That gives the US leverage over their largest bond holder.
The US is also not some country that owes debt in a currency worth 10 times their own currency.
Either way even in a hypothetical situation where countries start dumping bonds it is not something that can be fixed with austerity.
Hell even the IMF issued policy paper a few years back admitting austerity is a scam.
PicturesOfABetterTomorrow · 41-45, M
@Kypro Personal debt and national debt are not the same thing. You don't have the ability to just arbitrarily increase your income. Countries do.
Trickle down doesn't work but that is also not what this is about.
Don't forget public debt is also almost always private assets.
So small business loans, social safety net benefits, public and private projects. Those debts go away and those loans go away which means the private sector crashes too.
Politicians pretending it is as simply as your personal budget to scare people is a political tactic but not serious arguments.
Trickle down doesn't work but that is also not what this is about.
Don't forget public debt is also almost always private assets.
So small business loans, social safety net benefits, public and private projects. Those debts go away and those loans go away which means the private sector crashes too.
Politicians pretending it is as simply as your personal budget to scare people is a political tactic but not serious arguments.
PicturesOfABetterTomorrow · 41-45, M
@Kypro Tax cuts and debt are different conversations. They only coincide as tax cuts increase debt. But that is ultimately small potatoes.
The debt ceiling is the dumbest completely artificial and arbitrary gimmick any nation has ever invented.
Raising the debt ceiling has nothing to do with cuts.
The debt ceiling only impacts money the US government has already put on the credit card so to speak.
The debt ceiling has only become an issue since the right figured out with the Tea Party that they can throw a tantrum and threaten a default if they don't get their way.
Not raising the debt ceiling is the equivalent of you just randomly deciding not to pay last month's credit card charges because you don't feel like it.
This is not really a serious risk because the party that keeps threatening a default with the debt ceiling rule the government currently and are not going to create a totally artificial default on their watch for kicks.
The debt ceiling is the dumbest completely artificial and arbitrary gimmick any nation has ever invented.
Raising the debt ceiling has nothing to do with cuts.
The debt ceiling only impacts money the US government has already put on the credit card so to speak.
The debt ceiling has only become an issue since the right figured out with the Tea Party that they can throw a tantrum and threaten a default if they don't get their way.
Not raising the debt ceiling is the equivalent of you just randomly deciding not to pay last month's credit card charges because you don't feel like it.
This is not really a serious risk because the party that keeps threatening a default with the debt ceiling rule the government currently and are not going to create a totally artificial default on their watch for kicks.