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Forums - Politics Discussion - What Do You Think About The United States Debt?

Tbh, I'm more concerned about monetary policy at this point. We've reached the point where we need to keep interest rates at next to nothing in order to keep the economy functioning at all. If we hit another recession at this point, we've got nothing left with quantitative easing to help.

The joys of Keynesian economics...



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It is greedy people today selling out future generations. It is a sad thing, but people who tell you it can be sustained without consequences are lieing to you. There is no such thing as a free lunch. Bond holders (normal everyday people, corporations, governments) are going collect their money eventually, and chances are it will happen all at once (when there is economic insecurity.) A sizable portion of the debt is offset to everybody in the form of inflation, and the negative effects of inflation on inelastic consumers and producers is quite notable.



The USA's debt to GDP% isn't that much more than several other countries. Japan is far and away in the worst position in that concern.



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Unsustainable and the US will eventually default on it.



Debt is just another asset. As long as the US dollar is the world currency nobody can afford to collect on the debt as that would only kill their own assets.

Foreign debt is much lower, interestingly Japan holds a lot of it while being very much in debt itself.
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Debt creates money, it's been that way since the gold standard was abandoned.
http://positivemoney.org/how-money-works/how-banks-create-money/



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People who go on about government debt have no idea about economics.
A government only needs to be able to pay the interest on its debt.
Unlike a company or family a government can make money magically appear out of thin air by using its Reserve Bank to print more money.



Dark_Lord_2008 said:
People who go on about government debt have no idea about economics.
A government only needs to be able to pay the interest on its debt.
Unlike a company or family a government can make money magically appear out of thin air by using its Reserve Bank to print more money.

I agree with you half way. The interest last I check is 300 billion a year which we cover really easily with no problem (we have companies that are worth over 500 billion dollars and continue growing). The second part I disagree. We have to have products/services in order to back the money up.