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Scritto da Fatcheek, 29.01.2021 at 15:49
Scritto da Fatcheek, 28.01.2021 at 21:58
and no, US debt is not fine. 27 trillion dollars of debt, about to be 29 trillion btw, is pretty bad. the US can't borrow forever. Debt should not be bigger then the economy itself. Eventually, private borrowing will be crowded out if the government's debt continues to grow, and interest rates will rise. investors will just stop investing in the US, and that's where the recession happens. The system is just bound to fail, just not for now. but keep borrowing from the future..
Look what he said:
'USA debt is fine... if you had knowledge of economics you'd realize debt in this financial world is good, as long as you have a good economy and or in USA case, as long as you hold the dominant power'
Lol.. 1970's schools of economics taught students that if national debt exceeds 70% of GDP the economy IS collapsing. And look at US now, 110% debt, UK 300%, Japan 300%, Luxemburg was at 900% in 10-15 years ago.
And what is Itssgg1122 definion?: 'as long USA is the dominant power'. Basically he is saying as long we are imperialists we're good. Let's plunder, steal and underpay resources and services. And if Western regimes change the rules again (like 100% debt is 'good' now), he will keep supporting them and cite bloombergs and other imperialist and oligarchic platforms.
He still have to learn that capitalism and imperialism are different ideologies.
Don't waste time, he lack basic knowledge about the topic and keep repeating age old trope.
Did i somewhere mention that i support the usa policies? Again your putting words into another.
As long as USA is the dominant power means, the currency will hold its reserve world currency. Its currency will stay stable, countries nor financial markets wont ever think that the US will go bankrupt. Please educate yourself, this isnt some rocket science...
And about imperialism, yes the USA is in my opinion an empire and has imperialistic characteristics. Idk why or how its relevant since i dont disagree with you there. The subject of the matter was that US debt wont matter as long as confidence in USA is good.
And now about your statements, oh boy how easy it is to trash anything you say. You make it so easy.
Japanese debt to gdp is 237%
Uk debt to gdp is 88%
Usa debt to gdp is 106%
Can you provide me some sources of luxembourg debt to gdp from the last 15 years, and especially where it says 900%. Lol.
The western world hasnt also experienced unlimited growth. Please use your brain. I said as long as the confidence in the economy is good. For example, Netherlands, germany, whole west europe , should actually take more debts and boast their economy if that economy is not growing as fast as it should, just like now with corona. Good economies with confidence from markets can borrow almost unlimited to save their economies, bad and unhealthy economies, for example Brazil will go bankrupt. Just look at what bolsanaro said two weeks ago, "we dont have money" we gonna go bankrupt and theres nothing i can do".
Andartes, 1970 is 50 years ago. Dont you think knowledge about this has been improved? Remember how people thought in 1920 and compare it to 1970. Cmon man
From all your comments, i get a feeling, that u think you know shit, while in truth u know nothing. And i hope people will factcheck you when they read any of your statements. Because its mostly some vague, false, complot theory, without any sources.
Apparently, you have a really bad understanding of the economy. Considering you think you can just borrow money forever the way the US does... no you really can't. When your debt grows above your economy then there is something really wrong with your country. Debt cannot grow faster than the economy does, Investors will eventually decide that the US is not a trustable investment when they realize the US economy is screwed. To pay for the loans, you have to create more money. Considering the debt is now bigger than the economy, Inflation will eventually catch up and kill the US economy. This isn't hard to register since it's basic economics. Once investors stop loaning the US Government money, It's basically a dead country. The US Economy will obviously start to inflate, interest rates will go up, and the economy will collapse. I wouldn't be surprised if US Credit Score is decreased considering it's coming to the point where US Debt will be impossible to repay, The mere fact that it's still an AA+ is funny.
It's only a matter of time at this rate. An economic crisis is lingering over the united states at this rate, Which will just cost future generations.
Youre not giving any arguments, youre just giving your opinion and say that you think that its a matter of time that these rating agencies will give usa lower rating and usa will pay more interest rates.
Explain to me why USA pays only 0.1% interest on its bonds right now? Since you know, their debt is so fucking huge.
Here do you understand what it says here?: https://prnt.sc/xu1afk
" And even though the debt to GDP ratio has more than doubled since the late 1980s and early 1990s, interest payments over the next decade are projected to be a smaller share of GDP than they were back then"
Also stop putting words into my mouth, i said good economies can borrow almost unlimited. When your inflation is low, money printing or giving out more dollars doesnt matter for the economy it only benefits it.
And i already said. When and or if the USA economy becomes unhealthy then raising the debt will be a huge problem for them. So no they cant borrow unlimited because they need to have good economy. Now with the interest rates at all time low, and considering there is inflation. Interest rates are then actually even negative, now tell me how the fuck debt is a problem when u have negative interest rates? Cmon fatcheek this is easy. When there is high inflation, the CB can use the interest rates to lower the inflation. Easy. Since the interest rates are at all time low, and inflation is normal there isnt really a problem. They can borrow money and put more dollars available and make inflation rise and use interest rates to lower the inflation again.
If you want i can search a good article explaining this stuff. Its called macro economics.
Caricamento...
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Scritto da Fatcheek, 29.01.2021 at 15:49
Scritto da Fatcheek, 28.01.2021 at 21:58
and no, US debt is not fine. 27 trillion dollars of debt, about to be 29 trillion btw, is pretty bad. the US can't borrow forever. Debt should not be bigger then the economy itself. Eventually, private borrowing will be crowded out if the government's debt continues to grow, and interest rates will rise. investors will just stop investing in the US, and that's where the recession happens. The system is just bound to fail, just not for now. but keep borrowing from the future..
Look what he said:
'USA debt is fine... if you had knowledge of economics you'd realize debt in this financial world is good, as long as you have a good economy and or in USA case, as long as you hold the dominant power'
Lol.. 1970's schools of economics taught students that if national debt exceeds 70% of GDP the economy IS collapsing. And look at US now, 110% debt, UK 300%, Japan 300%, Luxemburg was at 900% in 10-15 years ago.
And what is Itssgg1122 definion?: 'as long USA is the dominant power'. Basically he is saying as long we are imperialists we're good. Let's plunder, steal and underpay resources and services. And if Western regimes change the rules again (like 100% debt is 'good' now), he will keep supporting them and cite bloombergs and other imperialist and oligarchic platforms.
He still have to learn that capitalism and imperialism are different ideologies.
Don't waste time, he lack basic knowledge about the topic and keep repeating age old trope.
Did i somewhere mention that i support the usa policies? Again your putting words into another.
As long as USA is the dominant power means, the currency will hold its reserve world currency. Its currency will stay stable, countries nor financial markets wont ever think that the US will go bankrupt. Please educate yourself, this isnt some rocket science...
And about imperialism, yes the USA is in my opinion an empire and has imperialistic characteristics. Idk why or how its relevant since i dont disagree with you there. The subject of the matter was that US debt wont matter as long as confidence in USA is good.
And now about your statements, oh boy how easy it is to trash anything you say. You make it so easy.
Japanese debt to gdp is 237%
Uk debt to gdp is 88%
Usa debt to gdp is 106%
Can you provide me some sources of luxembourg debt to gdp from the last 15 years, and especially where it says 900%. Lol.
The western world hasnt also experienced unlimited growth. Please use your brain. I said as long as the confidence in the economy is good. For example, Netherlands, germany, whole west europe , should actually take more debts and boast their economy if that economy is not growing as fast as it should, just like now with corona. Good economies with confidence from markets can borrow almost unlimited to save their economies, bad and unhealthy economies, for example Brazil will go bankrupt. Just look at what bolsanaro said two weeks ago, "we dont have money" we gonna go bankrupt and theres nothing i can do".
Andartes, 1970 is 50 years ago. Dont you think knowledge about this has been improved? Remember how people thought in 1920 and compare it to 1970. Cmon man
From all your comments, i get a feeling, that u think you know shit, while in truth u know nothing. And i hope people will factcheck you when they read any of your statements. Because its mostly some vague, false, complot theory, without any sources.
Apparently, you have a really bad understanding of the economy. Considering you think you can just borrow money forever the way the US does... no you really can't. When your debt grows above your economy then there is something really wrong with your country. Debt cannot grow faster than the economy does, Investors will eventually decide that the US is not a trustable investment when they realize the US economy is screwed. To pay for the loans, you have to create more money. Considering the debt is now bigger than the economy, Inflation will eventually catch up and kill the US economy. This isn't hard to register since it's basic economics. Once investors stop loaning the US Government money, It's basically a dead country. The US Economy will obviously start to inflate, interest rates will go up, and the economy will collapse. I wouldn't be surprised if US Credit Score is decreased considering it's coming to the point where US Debt will be impossible to repay, The mere fact that it's still an AA+ is funny.
It's only a matter of time at this rate. An economic crisis is lingering over the united states at this rate, Which will just cost future generations.
Youre not giving any arguments, youre just giving your opinion and say that you think that its a matter of time that these rating agencies will give usa lower rating and usa will pay more interest rates.
Explain to me why USA pays only 0.1% interest on its bonds right now? Since you know, their debt is so fucking huge.
Here do you understand what it says here?: https://prnt.sc/xu1afk
" And even though the debt to GDP ratio has more than doubled since the late 1980s and early 1990s, interest payments over the next decade are projected to be a smaller share of GDP than they were back then"
..Are you looking at what i just said? I just gave an easy to read explanation of what will happen. Read again.
Why is the US paying only 0.1% on interest right now? It's been reduced only recently because of the recent pandemic which caused it to lower it. And as i said, the effects aren't immediate.
..not changing the fact that the debt itself is still pretty bad, its not harmful at the moment but if its increased.. oh boy for future generations
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RP is terrible, but NWE is the worst of all
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Quota: Quota: Quota: Quota:
Apparently, you have a really bad understanding of the economy. Considering you think you can just borrow money forever the way the US does... no you really can't. When your debt grows above your economy then there is something really wrong with your country. Debt cannot grow faster than the economy does, Investors will eventually decide that the US is not a trustable investment when they realize the US economy is screwed. To pay for the loans, you have to create more money. Considering the debt is now bigger than the economy, Inflation will eventually catch up and kill the US economy. This isn't hard to register since it's basic economics. Once investors stop loaning the US Government money, It's basically a dead country. The US Economy will obviously start to inflate, interest rates will go up, and the economy will collapse. I wouldn't be surprised if US Credit Score is decreased considering it's coming to the point where US Debt will be impossible to repay, The mere fact that it's still an AA+ is funny.
It's only a matter of time at this rate. An economic crisis is lingering over the united states at this rate, Which will just cost future generations.
Youre not giving any arguments, youre just giving your opinion and say that you think that its a matter of time that these rating agencies will give usa lower rating and usa will pay more interest rates.
Explain to me why USA pays only 0.1% interest on its bonds right now? Since you know, their debt is so fucking huge.
Here do you understand what it says here?: https://prnt.sc/xu1afk
" And even though the debt to GDP ratio has more than doubled since the late 1980s and early 1990s, interest payments over the next decade are projected to be a smaller share of GDP than they were back then"
..Are you looking at what i just said? I just gave an easy to read explanation of what will happen. Read again.
Why is the US paying only 0.1% on interest right now? It's been reduced only recently because of the recent pandemic which caused it to lower it. And as i said, the effects aren't immediate.
..not changing the fact that the debt itself is still pretty bad, its not harmful at the moment but if its increased.. oh boy for future generations
Is this your explanation?:
"Apparently, you have a really bad understanding of the economy. " Its your opinion to me
"Considering you think you can just borrow money forever the way the US does..." again your opinion
"no you really can't" again your opinion
"When your debt grows above your economy then there is something really wrong with your country."
Now explain to me, i asked you 5 times with many example: How does debt affect you when your inflation is normal, interest rates below zero and your economy is considered one of the best. Confidence from markets are good. Would it really matter if usa debt grew now? Or would it matter if there would be some crisis which would plunge us economy into recession and people wont spent while the interest rates are low. Then again usa can just give out more bonds and put more dollars on the market/ invest/ give more dollars to their civilians. Just like what they are doing right now witht the corona crisis.
So no you have it all wrong here.
"Debt cannot grow faster than the economy does, Investors will eventually decide that the US is not a trustable investment when they realize the US economy is screwed"
First of all here are the statistics for usa debt to gdp ratio % by year. https://www.thebalance.com/national-debt-by-year-compared-to-gdp-and-major-events-3306287
As you can see its debt grows and decreases depending on whats happening with its economy.
Now lets see what the yields of bonds did in the same period :
https://www.macrotrends.net/2016/10-year-treasury-bond-rate-yield-chart
Now explain to me why the USA debt to gdp was 30% in the 70s with highest bonds rate ever for USA. And it only kept decreasing while the debt to gdp kept increasing. By your logic it should be the other way around. Again youre proven wrong here.
"To pay for the loans, you have to create more money. "
Now who said this? Whats your argument here? Do you mean extra loans which would need extra dollars to finance it?
"Considering the debt is now bigger than the economy, Inflation will eventually catch up and kill the US economy."
So because USA debt is now bigger than its economy, its inflation is bound to rise now? Because of what, where is your arguments or explanation.
Last time USA had high inflation rate above 5%-12% It was fucking 41 years ago...
https://www.thebalance.com/u-s-inflation-rate-history-by-year-and-forecast-3306093
Now explain to me why in the 70s its debt to gdp was stable but the inflation was skyhigh, and while in the next period its debt rose exceptionally high, its inflation was really low.
"This isn't hard to register since it's basic economics."
Basic economics? dude you have no idea what youre talking about. Please use arguments and facts and cite anything you state.
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Scritto da Fatcheek, 29.01.2021 at 15:50
Scritto da Fatcheek, 28.01.2021 at 21:58
and no, US debt is not fine. 27 trillion dollars of debt, about to be 29 trillion btw, is pretty bad. the US can't borrow forever. Debt should not be bigger then the economy itself. Eventually, private borrowing will be crowded out if the government's debt continues to grow, and interest rates will rise. investors will just stop investing in the US, and that's where the recession happens. The system is just bound to fail, just not for now. but keep borrowing from the future..
Look what he said:
'USA debt is fine... if you had knowledge of economics you'd realize debt in this financial world is good, as long as you have a good economy and or in USA case, as long as you hold the dominant power'
Lol.. 1970's schools of economics taught students that if national debt exceeds 70% of GDP the economy IS collapsing. And look at US now, 110% debt, UK 300%, Japan 300%, Luxemburg was at 900% in 10-15 years ago.
And what is Itssgg1122 definion?: 'as long USA is the dominant power'. Basically he is saying as long we are imperialists we're good. Let's plunder, steal and underpay resources and services. And if Western regimes change the rules again (like 100% debt is 'good' now), he will keep supporting them and cite bloombergs and other imperialist and oligarchic platforms.
He still have to learn that capitalism and imperialism are different ideologies.
Don't waste time, he lack basic knowledge about the topic and keep repeating age old trope.
yeah I should probably stop responding since I'm loosing braincells but oh well
You first need to have some braincells in order to lose any dude. Youre all wrong in this discussion.
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And about the usa debt. Here is a book about the myth of deficit. Read chapter 5.
"The Deficit Myth: Modern Monetary Theory and the Birth of the People's Economy by Stephanie Kelton"
https://blogs.lse.ac.uk/lsereviewofbooks/2020/06/22/book-review-the-deficit-myth-modern-monetary-theory-and-the-birth-of-the-peoples-economy-by-stephanie-kelton/
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Scritto da Red.Army, 10.01.2021 at 22:56
USA could do with some communism. Capitalism is killing the country, killing the people. It's nothing but a materialistic degenerate economic system which exploits the working class and promotes usury.
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