>> That’s why the nations of the world are doing everything they can to create new debt - including the US.
>> It’s why student loans went from $300 billion outstanding in 2000 to over $1.8 trillion now.
Bullshit. Your screed is sounding a lot like a support group for Modern Monetary Theory.
Which itself is bullshit upon bullshit.
Actually, it's not MMT.
If you had the ability to read the Fed's weekly H.4.1 balance sheet then you too would be able to understand the creation and flow of debt-based money.
MMT posits that the governments of the various countries can create unlimited amounts of money - therefore can pay off debt or fund government programs with impunity.
It also posits that a limit to government spending is inflation.
You and I would agree - MMT is garbage.
Governments are actually very strapped when it comes to money creation - they don't create it - there is no government printing press.
Governments can sell securities (claims on the future labor of its citizens) - and they can alter tax code. They can also encourage others to take out new debt, with each dollar of new debt being an added dollar in the money supply.
When debt is paid off then the money supply shrinks by that amount. Nothing fancy - it's what debt-based money is.
I go back to "Cash for Clunkers" in 2007/08. Why was the government begging people to turn in old cars and take out new debt?
Why is the government enticing college students to take out college loans - to the tune of over $1.8 trillion now?
Why are they about to enable the GSEs of Fannie Mae and Freddie Mac to begin offering mortgage refinance loans?
It's all about trying to keep the "money piston" from dropping like a rock into a major recession or downright depression.
China is there. Germany is there. Japan is there. We are there - but pretending we're not.
It's going to get a whole lot worse before it gets better.