If Obamacare fails, then what?

[Kasz216]

Mr Khan said:

SlayerRondo said:

Mr Khan said:

SlayerRondo said:

 

A measure of a countrys federal debt in relation to its gross domestic product (GDP). By comparing what a country owes to what it produces, the debt- to - GDP ratio indicates the country's ability to pay back its debt.

 

 

Yes their is a large difference. We can print our own money at whatever rate we decide given that our currency is no longer bound to the value of gold. However this leads to inflation and inflation leads to uncertainty and that makes people less likely to buy US bonds or hold on too their currency which will decrease the value of the currency further.

That's the beauty of it, however. Inflation only leads to uncertainty when it leads to uncertainty. The liquidity trap sorts all of that out for the moment.

Japan demonstrates that America's nowhere near the danger zone, especially since the US doesn't have Japan's demographic problems which mess with the tax base.

That's not exactly true though.

Japan's culture is MUCH more debt resistant, because the japanese are ardent investors and savesrs in conservative porfolios.

Japan has the second largest debt market in the world despite it's economy not being anywhere near second, because of domestic demand that is unmatched elsewhere in the world, due to the aforementioend investors, and the corrupt government/corproations willing to prop up pension funds with bad bet government bonds.