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Old 03-25-2015, 09:48 AM
 
13,087 posts, read 10,440,462 times
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Quote:
Originally Posted by rruff View Post
All else being equal the US consumer would be much better off if it had been 25-30 trillion.
In the short term, perhaps. But in the long term being in debt to our eyeballs can cause damage.
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Old 03-25-2015, 09:58 AM
 
Location: Ruidoso, NM
5,436 posts, read 5,289,969 times
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Quote:
Originally Posted by ncole1 View Post
In the short term, perhaps. But in the long term being in debt to our eyeballs can cause damage.
What is the "damage"?

High debt lowers the US$ exchange value, which closes the trade gap and increases domestic investment and production. Since a lot of our debt is acquired precisely to support a trade deficit (we buy products, they buy bonds), it's self correcting. The reason our economy has been so poor for most citizens is the perpetual trade deficit and off-shoring.
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Old 03-25-2015, 10:05 AM
 
13,087 posts, read 10,440,462 times
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Quote:
Originally Posted by rruff View Post
What is the "damage"?

High debt lowers the US$ exchange value, which closes the trade gap
Uh, no it does not. The real (inflation adjusted) exchange value doesn't change much.

Quote:
Originally Posted by rruff View Post

and increases domestic investment and production. Since a lot of our debt is acquired precisely to support a trade deficit (we buy products, they buy bonds), it's self correcting.
No, consumption does not help. Only investment. For instance if the government issues debt in order to start a bull**** war again, we are no better off in the long run. On the other hand if it is used for infrastructure, R&D, science, education, or cracking down on tax cheaters, then it is a net gain.

Quote:
Originally Posted by rruff View Post
The reason our economy has been so poor for most citizens is the perpetual trade deficit and off-shoring.
Agreed, to a large extent.
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Old 03-25-2015, 10:30 AM
 
Location: Ruidoso, NM
5,436 posts, read 5,289,969 times
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Quote:
Originally Posted by ncole1 View Post
Uh, no it does not. The real (inflation adjusted) exchange value doesn't change much.
Domestic inflation and the exchange rate are two different things. You can certainly effect the exchange rate in real terms.
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Old 03-25-2015, 10:37 AM
 
13,087 posts, read 10,440,462 times
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Quote:
Originally Posted by rruff View Post
Domestic inflation and the exchange rate are two different things. You can certainly effect the exchange rate in real terms.
But not by simply printing money.
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Old 03-25-2015, 11:36 AM
 
Location: Ruidoso, NM
5,436 posts, read 5,289,969 times
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Quote:
Originally Posted by ncole1 View Post
No, consumption does not help. Only investment. For instance if the government issues debt in order to start a bull**** war again, we are no better off in the long run. On the other hand if it is used for infrastructure, R&D, science, education, or cracking down on tax cheaters, then it is a net gain.
I agree completely. I didn't say anything about consumption. The treasuries sold to pay for the trade deficit (consumption) are even worse because it has depressed wages and investment.
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Old 10-14-2019, 09:56 AM
 
Location: New York Area
17,879 posts, read 6,997,749 times
Reputation: 13718
Are we better off with everyone in misery except some well-connected kleptocrats, or some officially tolerated inequality?
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Old 10-14-2019, 11:31 AM
 
Location: The Triad (NC)
29,708 posts, read 64,701,046 times
Reputation: 34604
Quote:
Originally Posted by jbgusa View Post
Are we better off with everyone in misery except ...
some well-connected kleptocrats, or some officially tolerated inequality?
The only meaningful resolution is in having FEWER in that 'everyone' column. A lot fewer.

Even if we turned the entire world economy on it's ear and began paying everyone enough
to support themselves merely because they exist... we would just get to the absolute limit number
even sooner which brings us back to having fewer. An approch which we could start, need to start, now.
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Old 10-15-2019, 08:14 PM
 
4,183 posts, read 3,417,026 times
Reputation: 13794
According to the title, our education system is failing miserably.
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Old 10-16-2019, 12:26 PM
 
Location: Ontario, NY
2,821 posts, read 6,412,143 times
Reputation: 2937
Quote:
Originally Posted by thinkalam View Post
CAPATALISM has failed -- 21 Charts On US Inequality That Everyone Should
Sorry, I don't understand, what exactly does Capitalism have to do with equality? Capitalism has nothing to do with equality, That's pure Communism your thinking of.
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