Well...the money has to balance somehow. This is not something that pays for itself through economic growth like education/R&D/infrastructure. In fact, it has the opposite effect as it incentivizes people not to work or produce anything.
Debt Ceiling Fight 2023
- Thread starter UsualName
- Start date
Can you imagine the workplaces with people working until 75? Construction guys climbing ladders and walking i beams at 75. Totally unrealistic.
Well he has confused the hell out of us plebes who do not understand the jargonation of economic language...
"The U.S. does not borrow. That's just a myth. The U.S. has no real debt. The National debt is simply the sum of outstanding Treasury securities, but these do not represent real debt."
https://www.elitetrader.com/et/threads/the-fed.369902/page-2#post-5684136
So there IS "national debt", but it is not "real debt". I wish my CC balances were not "real debt", and I could skip paying the minimum due each month. That would be Ab Fab.
It is true that it is not debt as a person or business would have. I get that’s hard to understand but it is true. At the same time it is calculated as debt but there is no”credit card.”
It’s important to note that a lot of the doom and gloom stuff is carryover from when currency was connected to the gold standard and money changed completely when the fed was given the dual mandate.
Last edited:
Oh fuck the dual mandate shit. Let us try to get to the basics here.
The Fed controls the money supply. The government says "we need a billion bux". The Treasury, in collusion with the Fed says, "OK US congress, give us 1 billion in tax receipts to buy 1 billion of our treasury notes. And we are going to charge you interest on the money you borrowed from us. And by the way, the one billion in tax receipts you give us were already loaned to you at a certain interest rate."
US government goes yay, we got a billion bux to spend on whatever. Medicare, defense, etc.
So in a few years, when the notes mature, the government gives the treasury their one billion back, but the Fed goes "Hey, where's the interest we charged you on the 1 billion?" The USG goes hamina hamina, and borrows more money in the form of treasuries to pay the interest they now owe, and then go on to borrow more money for government funding in the next round, and the cycle repeats? Do I have that right?
Increase taxes on the rich and corporations.They benefit the most from workers make them pay their retirements.
In a way yes. With not enough debt we can stymie growth and if we stymie growth then the “debt” becomes a drag. This doesn’t mean blow out the budget for the sake of growth either. But we can become self destructive if we pull the plug on debt.