Need some Help debating sound money
Do you think borrowing is sustainable forever? What happens if China wants us to pay up?
We only owe China approx. 500 billion, our total debt is approx 15 trillion in actual debt... way more than that in proposed debt.
The Senate and House seem to have no intentions of stopping.
The only thing currently saving the USA is the dollar is world reserve currency.
This is going to change. The United Nations are already proposing a new world currency... IMF and such organizations already exist to take over if US collapse happens...
Yes. As long as the interest rate is lower than the inflation rate (which it is), then we aren't just borrowing money, we're being paid to hold their money for safekeeping. This whole debt "crisis" is a lie. Most of the current debt increase can be directly linked to the loss of incoming tax receipts from the recession, coupled with the increase in outlays for social safety net programs.
China already makes us "pay up". They hold treasury notes, which pay the holder interest over the course of the bond (1, 5, 10, 30 year etc). China may hold 1.2 trillion in US debt, but it will never be paid out all at once, nor is their a legal recourse for them to demand such.
So let me get this straight... you think borrowing money/printing money is sustainable forever?
That was my original post you quoted and commented on.
What's your solution, raise taxes during a recession?
Let me use an example on why borrowing money isn't such a terrible deal for the US govt right now:
A pack of gum costs a dollar.
I want a pack of gum... but not right now. I want it next year. So I put my gum money somewhere safe - US bonds.
I borrow a dollar from the US government, who promised to pay me back that dollar next year.
A year later I now have a dollar, courtesy of the US government/
Gum now costs 1.05.
The US government just made a nickel off me.
That scenario above? Its been happening during bond sales for the past 3 years.
So is government spending/borrowing sustainable right now? Yes.
Eventually the recession will end, spending will drop, income will rise, and yes - maybe even taxes will rise. The top US rate on income was 90% back in the 50's when US growth skyrocketed - so clearly its not an issue.
There is no debt crisis. Its a make believe issue to keep the populace distracted from real problems. In the event of a real debt crisis, we'd just print a trillion dollar billl, tell China that we're even, and everything would cost 5-10% more. Big whoop.
Notice that the debt situation is unchanged from a year ago, when everyone was frothing over it. Yet its barely an issue during the campaign. That alone should tell you something.
Inflation is killing the American public right now. Gas prices are soaring, Food costs are up, and your in favor of more inflation?
You're in favor of stealing money from hard working Amercans and giving it to the 1% in Washington and Wallstreet?
Maybe you're not familiar with the 100 trillion Zimbabwean dollar?
That worked out well for them.
Central banks will always fail, because no group of men are smart enough to micromanage an economy.
I suggest you read a book by Hayek or Mises, they strongly disprove what you are saying.
Your confusing commodity prices and inflation. The Fed doesn't micromanage anything. Micromanage has a specific definition.
I suggest you read a basic book on economics.
Hayek has ideas that I disagree with, but they're all grounded in the same basic facts that Keynes spun his theories from.
You can't discuss economics in a straight face while spouting shit - and I do mean shit - like "what if china wants their money back". Learn the basics, and then you can argue your points with a firm grounding.
(any help appreciated)