How Dangerous Is U.S. Government Debt? (No one is talking about it)

[whichphilosophy]

If the US reaches a point where it defaults then the value of its bonds will decease as it cannot repay these.

The US is nowhere near that point. You might as well worry the effect of a giant meteor hitting the planet.

Currently but concerns would relate to the future based on current trends at about US$3,506.00 per second and rising.

 

[laughing dog]

The US is nowhere near that point. You might as well worry the effect of a giant meteor hitting the planet.

Currently but concerns would relate to the future based on current trends at about US$3,506.00 per second and rising.

Even with the trends, the US is nowhere near that point. You might as well worry the effect of a giant meteor hitting the planet.

 

[bilby]

That's right, they can. Might not be a good idea, but there's no constraint.

The problem is more will people be productive. If enough goods and services are produced, the economy can absorb the money.

Economies don't grow unless someone spends more than their income.

It's a sad state of affairs when the only way to have "growth" is through debt. Maybe we don't need this "growth"?

'Debt' and 'money' are synonymous.

How the fuck could you expect economic growth without money?

It's not so much "a sad state of affairs", but rather "bleeding bloody obvious" that we can't have growth without debt.

As to whether we 'need' growth, simply ask yourself, 'would I rather be richer in five years than I am today, or would I rather be poorer?'.

If you think most people would prefer to be poorer, then growth is, indeed, needless.

 

[whichphilosophy]

Currently but concerns would relate to the future based on current trends at about US$3,506.00 per second and rising.

Even with the trends, the US is nowhere near that point. You might as well worry the effect of a giant meteor hitting the planet.

Politicians who say that there is no long term problem are doing so on the assumption that the US economy is strong but currently the interest rates to manage this have been held artificially low. It cannot simply print off billions of dollars as a solution because eventually this will lead to devaluation. GDP has actually slowed down and soon there will be a lot of baby boomers in retirement on government pensions.

Maybe things are okay now but then the great recession and bankster bail outs happened suddenly.

The European Union is also heavily in debt with countries such as Spain, Greece. Italy Ireland and Portugal having already faced financial crises.

 

[barbos]

It's a sad state of affairs when the only way to have "growth" is through debt. Maybe we don't need this "growth"?

'Debt' and 'money' are synonymous.

How the fuck could you expect economic growth without money?

It's not so much "a sad state of affairs", but rather "bleeding bloody obvious" that we can't have growth without debt.

As to whether we 'need' growth, simply ask yourself, 'would I rather be richer in five years than I am today, or would I rather be poorer?'.

If you think most people would prefer to be poorer, then growth is, indeed, needless.

If what you describe were true then Debt/GDP ratio would have been constant. Instead it grows. US has rather tiny economic growth which is supported by huge growth in debt. I think the whole mantra of economic growth is a bullshit and not applicable to developed countries anymore.

 

[whichphilosophy]

'Debt' and 'money' are synonymous.

How the fuck could you expect economic growth without money?

It's not so much "a sad state of affairs", but rather "bleeding bloody obvious" that we can't have growth without debt.

As to whether we 'need' growth, simply ask yourself, 'would I rather be richer in five years than I am today, or would I rather be poorer?'.

If you think most people would prefer to be poorer, then growth is, indeed, needless.

If what you describe were true then Debt/GDP ratio would have been constant. Instead it grows. US has rather tiny economic growth which is supported by huge growth in debt. I think the whole mantra of economic growth is a bullshit and not applicable to developed countries anymore.

There are still a lot of poor people in America and those not covered by insurance and pensions. The economic growth is not complete.
However growth can also be sustained by productivity and profitability of manufacturing and business services. It costs money to build cars but more money comes in once they are sold.

 

[DBT]

There are environmental/ecological limits to growth. Which we may have already exceeded.

 

[barbos]

If what you describe were true then Debt/GDP ratio would have been constant. Instead it grows. US has rather tiny economic growth which is supported by huge growth in debt. I think the whole mantra of economic growth is a bullshit and not applicable to developed countries anymore.

There are still a lot of poor people in America and those not covered by insurance and pensions. The economic growth is not complete.

American poor are a result of a broken system, not the indication of potential economic growth.

However growth can also be sustained by productivity and profitability of manufacturing and business services. It costs money to build cars but more money comes in once they are sold.

No, not "also", this is the only kind of "growth" which is allowable in developed countries.

 

[laughing dog]

Politicians who say that there is no long term problem are doing so on the assumption that the US economy is strong but currently the interest rates to manage this have been held artificially low. It cannot simply print off billions of dollars as a solution because eventually this will lead to devaluation.

First, devaluation of a currency is not a bad outcome. Second, debt is harmful when one does not have an ability to repay it. Most of our gov't debt is owed to ourselves - that debt represents redistribution to ourselves. The gov't debt that is a potential repayment burden is the debt owed to foreigners which is around 1/3 of the total outstanding gov't debt. When understood in that manner, our gov't debt "problem" is more than easily managed. Third, debt is a repayment problem when one does not have the means to repay it. The US gov't has sufficient assets and ability to repay the entire debt even if it took the economically ignorant course to do so.

The European Union is also heavily in debt with countries such as Spain, Greece. Italy Ireland and Portugal having already faced financial crises.

None of those countries has an independent monetary authority nor do any of those countries have the economic "prestige" of the US.