The fine GOP House majority

kmgilroy89 said:
The Republicans are basically foreshadowing a debt ceiling showdown. As is, $31 trillion of debt is a talking point, not a problem. It's actually really poor economics to have a balanced budget, because often times the spending pays for itself through growth. However, the projected $150 trillion in unfunded liabilities could break us. We can't have too large of a percentage of our population collecting Social Security/Medicare and not contributing much in taxes. Really the only thing the only the government must pay for is interest. Everything else could theoretically be borrowed. If the interest exceeds tax revenues (or the world expects that it will) we will have an economic disaster. Interest rates would skyrocket higher as our treasuries would become junk bonds and countries around the world would push to remove us as the reserve currency. The government would either face an inflation crisis or default. The easiest/smartest way to address this in the near-term is to increase immigration in order to get a higher labor force participation rate and more workers paying taxes.
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The proper to look at this is debt to GDP. There is no magic recipe either. We are the world’s reserve currency and market of choice. We must grow. If debt is your thing and you’re talking about cutting spending instead of how to increase gdp growth you are totally clueless.
 
kmgilroy89 said:
FYP
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FYP?? are you referring to the Tictok page?
In between the work on your next Tictok shuffle, Tell me your limit on how much monies the government should force out of private hands , What is to much?
 
UsualName said:
The proper to look at this is debt to GDP. There is no magic recipe either. We are the world’s reserve currency and market of choice. We must grow. If debt is your thing and you’re talking about cutting spending instead of how to increase gdp growth you are totally clueless.
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Japan has been able to survive a high Debt-GDP (twice that of ours) for many reasons. One, is their strong currency. They keep inflation low and are able to keep interest rates low. This keeps their interest payments lower. Their rating is A+ where as our rating is AA+. Not a huge difference.
 
Mercor said:
FYP?? are you referring to the Tictok page?
In between the work on your next Tictok shuffle, Tell me your limit on how much monies the government should force out of private hands , What is to much?
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Over 100% would probably be overkill. In all seriousness, it all depends on what we're trying to accomplish. There's no fixed number. I personally prefer direct taxes over dishonest money printing to pay debts. I think it adds more certainty to markets.
 
kmgilroy89 said:
Japan has been able to survive a high Debt-GDP (twice that of ours) for many reasons. One, is their strong currency. They keep inflation low and are able to keep interest rates low. This keeps their interest payments lower. Their rating is A+ where as our rating is AA+. Not a huge difference.
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I wouldn’t look at Japan as the model for fiscal management. The Japanese are unique in their situation. They can’t get inflation to rise because the Japanese are very frugal people and that actually keeps their gdp lower than it would be with healthy inflation levels.
 
UsualName said:
I wouldn’t look at Japan as the model for fiscal management. The Japanese are unique in their situation. They can’t get inflation to rise because the Japanese are very frugal people and that actually keeps their gdp lower than it would be with healthy inflation levels.
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Japan's central bank has been much more reluctant to increase their money supply since their rapid inflation in the 80's. The Fed on the other hand has been printing money like there's no tomorrow with a sharp spike in the last couple of years.
 
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