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Many people imply that the US needs no debt, but then again I don't believe these same people realize what the US has being the world reserve currency which is fueled by our debt. Do those people who want us to have no debt, want the world to have a new world reserve currency? I mean, even the Bush administration and US Treasury realized that if the US were to continue down the surplus Clinton years (surpluses are good from time to time like now would be great), the world would be unstable in finding a new world reserve currency. With that being said, I do agree to debt reduction but the thought of zero debt and the loss of the world reserve currency is a scary thought for us; what do you all think?
Russia, China, France, Arab countries, and South America, have been working as a group to stop the US dollar from being the worlds reserve currency for many years.
Many people imply that the US needs no debt, but then again I don't believe these same people realize what the US has being the world reserve currency which is fueled by our debt. Do those people who want us to have no debt, want the world to have a new world reserve currency? I mean, even the Bush administration and US Treasury realized that if the US were to continue down the surplus Clinton years (surpluses are good from time to time like now would be great), the world would be unstable in finding a new world reserve currency. With that being said, I do agree to debt reduction but the thought of zero debt and the loss of the world reserve currency is a scary thought for us; what do you all think?
there was never a surplus. as long as there is a national debt, there will never be a surplus.
if the USA gets off of the world reserve currency, then the USA will crash and burn as politicians realize that they just cannot tax and spend nor borrow and spend.
the only solution after that is to declare bankruptcy and start over.
I bet England thought the sterling would be the reserve forever and look what happened. When the day comes, and it will, it's going to make the Obama train wreck look like a time of wonder and amazement.
Obama train wreck?
The main reason those countries are getting away from the US dollar is because of GW Bush.
When B. Clinton was in office our budget was balanced, and the value of the US dollar was high. But GW Bush gave the rich $3 trillion dollars in tax cuts (and added that $3 trillion to our national debt.)
Then GW Bush attacked Iraq for nothing, and added another $750 billion to our national debt.
GW Bush's deficits and national debt brought down the value of the US dollar. When a countries currency is judged that countries national debt level is a major factor. (the lower a countries national debt and deficits, the higher its currency value.)
The US economy and US dollar are deeply connected to all of the worlds economies, and when America's economy/currency has problems, the whole worlds economies also have problems.
But since Obama has cut GW Bush's debt growth rate in 1/2, and since Obama has spent less money than any president since Eisenhower (Obama has helped the value of the US dollar in major ways.)
Yes, the decision is no longer ours. Liberals need to start understanding that are consequences in wild and uncontrolled spending and debt.
The dollar is becoming worthless. There will be consequences to that also.
The world is not going to stand by and take it and as others have pointed out other countries are making moves. With Russia and China joined together and getting other nations on board to trade in other currencies what can the U S do? Declare war on the whole world? Would it be right to force the whole world to use a currency they do not want?
there was never a surplus. as long as there is a national debt, there will never be a surplus.
if the USA gets off of the world reserve currency, then the USA will crash and burn as politicians realize that they just cannot tax and spend nor borrow and spend.
the only solution after that is to declare bankruptcy and start over.
How would that work? People always saying these kind of things, never explain how exactly that would work? Who's going to call the US on to the carpet to get them to pay in the event they want to "call in US debt?"
It wouldn't be China, they're the number one supplier to US consumers so they'd be pissing off their #1 customer, it wouldn't be the other BRIC nations they don't hold as much debt even collectively as Japan does, speaking of Japan it wouldn't be them being the US's #1 Asian ally, who have extremely close political and military connections to us.
The overwhelming majority of US debt is held by the US itself. And then even with a loss of reserve currency status which really only means that nations hold assets in USD because it's the most liquid and easy to transfer, it wouldn't disappear the 300,000,000+ Americans who are still going to need to buy things, and because our manufacturing base is now mostly foreign, there's no possible way the scenario you're playing it out could ever happen.
Special drawing rights are constituted by a majority US Dollar, then Euro, Pound and Yen. SDR isn't a direct competitor to the overall supremacy of the USD, but it could lead to a situation where the reserve currency is a basket of major currencies rather than the singular USD.
The way I see it there are 2 paths that China and Russia can take. One keep gobbling up other nations that will ditch USD and trade in their currencies. Or the second both countries currencies being added to a basket that is counted as SDRs.
China will eventually surpass the US. The Euro and Pound are stronger than the dollar. The US has gotten away with keeping the dollar as reserve currency through old trade deals and military strength. Eventually China will overtake the US, and countries will abandon the dollar.
Many people imply that the US needs no debt, but then again I don't believe these same people realize what the US has being the world reserve currency which is fueled by our debt. Do those people who want us to have no debt, want the world to have a new world reserve currency? I mean, even the Bush administration and US Treasury realized that if the US were to continue down the surplus Clinton years (surpluses are good from time to time like now would be great), the world would be unstable in finding a new world reserve currency. With that being said, I do agree to debt reduction but the thought of zero debt and the loss of the world reserve currency is a scary thought for us; what do you all think?
Tell that to Greece who overtime borrowed so much that nothing is now produced worth exporting.Clinjton surplus years where what even he called the Reagan peace dividend. Like all democrats since the 60's instead of investing it in infrastructure that had return on investment ;;he invested it in wealth sharing program that returned what we see now;dependents of welfare.
The main reason those countries are getting away from the US dollar is because of GW Bush.
When B. Clinton was in office our budget was balanced, and the value of the US dollar was high. But GW Bush gave the rich $3 trillion dollars in tax cuts (and added that $3 trillion to our national debt.)
Then GW Bush attacked Iraq for nothing, and added another $750 billion to our national debt.
GW Bush's deficits and national debt brought down the value of the US dollar. When a countries currency is judged that countries national debt level is a major factor. (the lower a countries national debt and deficits, the higher its currency value.)
The US economy and US dollar are deeply connected to all of the worlds economies, and when America's economy/currency has problems, the whole worlds economies also have problems.
But since Obama has cut GW Bush's debt growth rate in 1/2, and since Obama has spent less money than any president since Eisenhower (Obama has helped the value of the US dollar in major ways.)
Budget's are the lesser part of the financial picture. Just like any corp income, assets and returns matter more. All that so-called budget surplus was promptly leveraged and offshored with the real "surpluses" to fatten all the investment funds for govt et al. (mostly under Clinton)
D's and R's don't matter. They simply pass the football.
How would that work? People always saying these kind of things, never explain how exactly that would work? Who's going to call the US on to the carpet to get them to pay in the event they want to "call in US debt?"
It wouldn't be China, they're the number one supplier to US consumers so they'd be pissing off their #1 customer, it wouldn't be the other BRIC nations they don't hold as much debt even collectively as Japan does, speaking of Japan it wouldn't be them being the US's #1 Asian ally, who have extremely close political and military connections to us.
The overwhelming majority of US debt is held by the US itself. And then even with a loss of reserve currency status which really only means that nations hold assets in USD because it's the most liquid and easy to transfer, it wouldn't disappear the 300,000,000+ Americans who are still going to need to buy things, and because our manufacturing base is now mostly foreign, there's no possible way the scenario you're playing it out could ever happen.
This is very important. It should ring in people's ears. People need to stop thinking country and think corporate. Even the so-called "Foreign" Debt investment. They need to look at who is actually invested in that debt. The article I posted earlier in this thread examines how the US is in debt to itself, including foreign investments. One must follow the money.
Quote:
Originally Posted by CDusr
I think looking at the breakdown of this and attempting to track it would be far more fruitful.
Go to pg 144.
Think it's worth looking into the breakdown of that category called "other". Even though the seem a bit behind on their tracking of who owns what. They seem to feel they got the debt part right.
quote: 3. Other debt (green), i.e., debt in public hands, including foreign governments.
Quote:
Originally Posted by CDusr
If you look at the breakdown of the debt.(slightly larger now) Except for the 43.7% (4.1tril), which could be gone through, all those other categories are really govt owned, this includes the publicly traded corps. Might be a few exceptions. Some might debate the FED quasi thing. I am sure they will do their best to get John Q. Smuck to pay for it.
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