Posted on 03/26/2020 6:29:11 AM PDT by j.argese
Okay, I’ve been trying to do some research as to when “The Dafficit” (Hat tip to Daffy Jim Sasser) became a thing. About the only people nuttier than gold bugs and audit the fed crack pots. Country will never be broke, it can do something you or I CAN’T do.
So when did this political-financial flim-flam get started and who did so?
There are literally hundreds of examples throughout history of countries going broke due to deficits and lose fiscal policies.
Or do you think America is somehow special in regards to mathematics?
“Country will never be broke”
You’re dumb. Shut up.
Who’s going to pay the interest?
Compare what US$ bought in 1960 versus what it buys today.
It is like a $ today is worth 15 cents compared to 1960.
At the rate Feds are printing money, a gallon of milk will cost $39.95 in 50 years.
You need to read... This Time Is Different: Eight Centuries of Financial Folly by Kenneth S. Rogoff and Carmen M. Reinhart
Technically you are correct. Because our debt is denominated in USD, we can print as much as we need. But other entities who buy our bonds may decide not to if they see us as essentially inflating our way out of debt. The problem with money printing is that the law of supply and demand still applies. The more you have of something, the less it’s worth. We are risking a severe inflation. Right now the only thing I am buying is gold.
Wow, you and others are really that naive?
Currently about 25% of nations tax revenue goes to pay just the interest on our national debt. Considering how low interest rates are, that’s very worrisome.
The more we borrow as a nation, the higher the interest we pay. And that principal??
It’s not any different than your personal finances. So in that line, it matters not how much money you borrow as long as you can service the interest?
Heaven help us, nobody seems to care anymore about a balanced budget or a plan to reduce the National debt.
There are people living today that will probably experience this and all other nations bankruptcy
-28 yr veteran of finance.
The deficit was always a concern. Especially for Republicans in the mid-20th century. National bankruptcies have occurred elsewhere. They can be disastrous. State bankruptcies have happened here. Please try to learn more about economics and history before you post on topics like this.
Dude it’s going to cost that in 5 years.
We are running the printing presses at warp speed.
Keep’em coming!
That is espousing MMT.
The author good company with the “Squad.”
Is that really where we want to be? Because is unlimited debt is going to be a thing, I am going to go buy a new truck. I really, really want one. //s
Why would auditing a financial institution that is accountable to the public for its actions be considered “crackpot”?
How messed up does your brain have to be to associate fiduciary due diligence with crackpottery? Are you a brainwashing victim?
We do not need a debt money system, we can print or coin sovereign money like our Constitution demands.
Now, could we collapse based on this? Yes, but when? It depends and nobody knows when. The whole worth of this economy; land with natural resources, businesses, infrastructure etc. is much higher than the value of the national debt.
Is the gold standard the only way to value money? I don't believe so, gold is simply an element that we put faith in since it is limited and of intrinsic value. One massive gold strike or if asteroid mining ever becomes feasible and we get an asteroid with a lot of easily recoverable gold and the price could plummet overnight. We could decide to put faith in lead or, what the government has decided to use as a replacement for gold is the value of the economy. When you look at some of these apocalyptic movies you see that when economies collapse people put value in things that satisfy their base (Maslow's hierarchy) needs. And even though they are movies I believe there is some truth to that. And gold isn't likely to be of great value then - but that is my opinion.
>>>Who’s going to pay the interest?
On the short end at the moment, the lender pays.
Eventually we will run out of other people’s money.
I stopped worrying about the debt when I realized it wasn’t going to be our country for much longer.
Simply stopping the flow won’t be enough.
We already have 30 million fraudulently documented foreigners here and nobody is going to make them leave.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.