bilby
Fair dinkum thinkum
- Joined
- Mar 6, 2007
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- Strong Atheist
Why would it ever need to be paid off?US debt is currently at $34T, an insane amount many times more than can ever be paid off.
Are you expecting the US to die, or become too old to work, or to lose her income due to redundancy or offshoring, or to run away from its creditors?
These are the main reasons why lenders won't offer open ended credit to individual people. People die, get fired, retire from working, or do a runner. Nation states do none of these things. The US will be wealthier in the future than she is today; Like a person in their youth, with a good job and excellent prospects, it makes a lot of sense for her to borrow a load of money now, and pay it back later when it's worth less, and she has a higher income.
And as she is imortal, she can keep on borrowing indefinitely.
Basing money on gold is utterly stupid; Basing it on the size of the economy makes far more sense.
Tying money to a commodity whose availability has no relationship to the demand for money just ties you into a rollercoaster of inflationary and deflationary upsets.