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The only reason the United States isn't in bigger trouble right now is that other countries keep buying our debt. How long before we are where Greece is? Do you think we will avoid it? 10 years? Longer? Socialism doesn't work. Eventually you do run out of other people's money. Greece is the textbook. Germany didn't blink like Greece thought they would. Can just kicked down the road and Greece I think hS hit a point of no return . Hopefully Portugal, Spain etc. will learn from Germany's actions. How about the United States? How far are we away from where Greece is now?
The US can never have Greece's problems because we have our own currency.
Countries buy our debt so they can sell more product to us than they buy. If they stopped, it would be a really good thing for the US. Domestic investment and wages would increase.
The U.S. Is different from Greece. But overall, the U.S. Is declining.
The decline here will be more gradual. It may not be a default on debt.
The standard of living will continue to decline, and unemployment will remain high for several decades. This is a wealth shift from the west to east Asia. Until labor cost in the rest of the world catches up, nothing much will change.
The U.S. Will continue to lead in technology. There will be high paying jobs in tech. But, more Americans will face financial difficulty in raising a family, paying off debt, and trying to retire. There will be enormous distance between those who have the dream job and live a wonderful life versus those who never seem to be able to build a career.
We may not be like Greece overnight. But social programs face insolvency in the not so distant future. Eventually, much will have to be eliminated. The American high education system is being walmartized. In a few decades, it'll be very different. Either expensive education or cheaper but crap education. Useless, worthless degrees.
The US can never have Greece's problems because we have our own currency.
Countries buy our debt so they can sell more product to us than they buy. If they stopped, it would be a really good thing for the US. Domestic investment and wages would increase.
The ONLY thing that is propping us up now is that for some reason other countries are willing to buy our debt. When that stops we are Greece.
All we are doing now is servicing the interest. When rates increase, we are dead.
The ONLY thing that is propping us up now is that for some reason other countries are willing to buy our debt. When that stops we are Greece. All we are doing now is servicing the interest. When rates increase, we are dead.
You've been mislead. Do you want to understand any of this, or do you just want to keep saying US = Greece over and over?
07-15-2015, 11:29 PM
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n/a posts
Quote:
Originally Posted by rruff
You've been mislead. Do you want to understand any of this, or do you just want to keep saying US = Greece over and over?
Clearly the latter.
The country is filled with armchair economists who don't have the faintest idea how any of this works yet will still sit around parroting empty talking points and pretending to be experts.
The only reason the United States isn't in bigger trouble right now is that other countries keep buying our debt.
Okay.
Quote:
Originally Posted by Burkmere
How long before we are where Greece is?
Greece's debt is ~177% of its GDP.
Looks to be around 2070-2075.
Quote:
Originally Posted by Burkmere
Do you think we will avoid it?
Avoid what?
177%?
US federal debt is currently 25% of World GDP. At present rates, US federal debt will be 1/3rd of World GDP by about 2025 or so. US federal debt will be 50% of World GDP by about the mid-2040s at current rates.
How much longer do you think the world can afford to buy US debt?
Quote:
Originally Posted by rruff
The US can never have Greece's problems because we have our own currency.
Greece had problems even when it had its own currency.
Quote:
Originally Posted by rruff
Countries buy our debt so they can sell more product to us than they buy.
That is not why they buy US treasury securities.
China 1263.4
Japan 1215.7
Carib 295.5
OPEC 292.9
Brazil 262.7
Belgium 228.9
Switzerland 215.8
Ireland 215.7
UK 194.8
Hong Kong 183.1
Luxembourg 171.0
Taiwan 170.3
India 110.3
Singapore 109.7
Mexico 87.4
Turkey 77.8
Germany 76.3
France 75.0
Canada 72.5
Korea 71.8
Norway 66.6
Russia 66.5
Philippines 39.4
Sweden 38.9
Netherlands 37.6
Colombia 35.6
Australia 33.8
Italy 32.7
Spain 31.4
Thailand 29.0
Chile 28.3
Poland 27.6
Kazakhstan 27.1
Israel 20.9
Denmark 16.4
Vietnam 13.4
Peru 10.8
South Africa 10.3
All Other 180.4
Quote:
Originally Posted by rruff
If they stopped, it would be a really good thing for the US. Domestic investment and wages would increase.
I hate it when people lie by omission. The price of everything increases at a uniform rate, specifically the rate of Monetary Inflation.
In Greece when the rate of Monetary Inflation was 29.5% in 1999-2000, the price of everything increased by 29.5%, including wages.
Factually...
The country is filled with armchair economists who don't have the faintest idea how any of this works yet will still sit around parroting empty talking points and pretending to be experts.
The only reason the United States isn't in bigger trouble right now is that other countries keep buying our debt. How long before we are where Greece is? Do you think we will avoid it? 10 years? Longer? Socialism doesn't work. Eventually you do run out of other people's money. Greece is the textbook. Germany didn't blink like Greece thought they would. Can just kicked down the road and Greece I think hS hit a point of no return . Hopefully Portugal, Spain etc. will learn from Germany's actions. How about the United States? How far are we away from where Greece is now?
The question is flawed, because the US can create new dollars and Greece cannot create new Euros.
I am not, of course, saying that massive inflation is a good thing, however, it is an option that can be used in an emergency. Greece does not have that option.
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