US Debt in real time

[antipop]

Originally Posted by PHC1

Tick, Tock, Tick, Tock... $27 Trillion and rising. Debt to GDP ratio of 130%.

https://usdebtclock.org/index.html#

It has been 5 years since I have updated this thread. Let's just say debt is not going away.

Well it doesn’t matter. Japan is at 300%. If you are a monetary sovereign then the debt is not a problem.

The debt for the government is an asset for households and businesses. So it should not be seen in isolation.

As for inflation, the central banks have been trying to actually start some inflation but it’s not happening. So we have room to print plus with COVID we’re far from full employment.

[PHC1]

Originally Posted by antipop

Well it doesn’t matter. Japan is at 300%. If you are a monetary sovereign then the debt is not a problem.

The debt for the government is an asset for households and businesses. So it should not be seen in isolation.

As for inflation, the central banks have been trying to actually start some inflation but it’s not happening. So we have room to print plus with COVID we’re far from full employment.

Keeping in mind that no Empire, Government or Financial system has ever withstood the test of time, historically speaking, saying "it doesn't matter" is not very reassuring.

Sure, there were some that persisted, the Pandyean Empire of wealthy South Indian Kings lasted 1850 years... It still ended as did Byzantine, Silla, Ethiopian and Roman Empires...

Australian Aboriginal culture has remained intact, with largely continuous religious and political structure, for more than 50,000 years (and possibly 65,000 or more). Australians Aboriginals have never formed empires or states in the same sense as the other known nations.

The US has been around for 244 and already there are some big questions as to where it is all headed with such a debt and budget deficits. The 2025 US Debt, according to the same clock will be $49 Trillion...

[PHC1]

While on the topic, pretty good video on the US Debt Limit explained https://youtu.be/McclWuXy-gY

[PHC1]

Another video of interest. National Debt: Who Cares? https://youtu.be/tBb6Dh234TE

[antipop]

Originally Posted by PHC1

Keeping in mind that no Empire, Government or Financial system has ever withstood the test of time, historically speaking, saying "it doesn't matter" is not very reassuring.

Sure, there were some that persisted, the Pandyean Empire of wealthy South Indian Kings lasted 1850 years... It still ended as did Byzantine, Silla, Ethiopian and Roman Empires...

Australian Aboriginal culture has remained intact, with largely continuous religious and political structure, for more than 50,000 years (and possibly 65,000 or more). Australians Aboriginals have never formed empires or states in the same sense as the other known nations.

The US has been around for 244 and already there are some big questions as to where it is all headed with such a debt and budget deficits. The 2025 US Debt, according to the same clock will be $49 Trillion...

They didn't end because of the national debt or a financial crisis.

The government is not a household and shouldn't manage its budget like one.

[PHC1]

Originally Posted by antipop

They didn't end because of the national debt or a financial crisis.

The government is not a household and shouldn't manage its budget like one.

Actually, it was exactly what happened. History does have a tendency of repeating itself, just seems different...

"With soaring logistical and admin costs and no precious metals left to plunder from enemies, the Romans levied more and more taxes against the people to sustain the Empire. Hyperinflation, soaring taxes, and worthless money created a trifecta that dissolved much of Rome's trade. The economy was paralyzed."


History is full of sudden currency collapses. Argentina, Hungary, Ukraine, Iceland, Venezuela,  Zimbabwe, Germany. A collapse of the dollar is an unlikely scenario...

Since the days of Bretton Wood agreement, our (US) government relies on the power of the military and NATO to make sure the dollar stays the world reserve currency and anyone that opposes that will have to try and take that away. It's really that simple. It is not the only reserve currency but by far the dominant one.

There were examples when some bold leaders that got the bright idea of doing things differently and it didn't end well for them. I'm not going to get into that.

[PHC1]

So what happened the first time around, with our Continental money?

Let's see...

Continentals refers to paper currency issued by the Continental Congress in 1775 to help fund the American Revolutionary War. Continentals quickly lost value, partly because they were not backed by a physical asset like gold or silver, but also due to the fact that too many bills were printed.


That sounds familiar.

[PHC1]

Well worth seeing. https://youtu.be/bgPDW0ZpgJU

[GSOphile]

This is like a giant game of musical chairs.

[JBT]

Originally Posted by antipop

Well it doesn’t matter. Japan is at 300%. If you are a monetary sovereign then the debt is not a problem.

The debt for the government is an asset for households and businesses. So it should not be seen in isolation.

As for inflation, the central banks have been trying to actually start some inflation but it’s not happening. So we have room to print plus with COVID we’re far from full employment.

Lots of inflation out there or just call it asset bubbles. Since Nixon closed the gold window the dollar has lost 80+ percent of its value and at the end of 1971 our debt stood at 395 billion. Today without gold in the mix the debt is 28 trillion. Without the restraint of gold this freed up politicians to spend as much as they wanted because the FED would just print more money. Before 1971 if politicians wanted to increase spending they would have to raise taxes and that never sits well with voters