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I was hoping to learn something from the OP. I didn't. Just a bunch of jibberish designed to protect Democrats and Barack Obama from the Big Spending conversation that will be put before them in the run-up to the election. In other words, Liberals and other left-leaners are very, very scared for their Cabal.
The U.s got to where it was because it's just so great.
It's not because the world was flattened by a world war, and we set up Bretton woods and then the Dollar standard to rob the world blind. The U.s is an empire just like many before it, except MUCH smarter.
Or if no amount of debt matters -- why doesn't the government just add a few more trillion in debt and give us all a million dollars? Wouldn't that solve a lot of problems?
It would cause inflation, and the value of that million dollars would be reduced to barely anything. The government borrows money from the treasury to spend more than it takes in - that is debt. Money that is directly redistributed is credit. However, debt can be a good thing during recession because it can be used to stimulate growth bla bla bla
You do not know how the Federal Reserve System works.
You didn't refute what I said. So come back when you have an actual response.
Actually, I DO know how the system works and why. The truth is the dollar has value, because we or anyone else assign's it value by accepting it as payment for goods and/or services. If it was no longer acceptable as a medium of currency, then it would have no value.
If the debt were paid off, it would simply reduce the amount of taxes we would be paying to the government.
btw expanding debt, does not expand the economy. That's like saying, having more credit card debt expands your household's economy. You do't have enough money for that big house, those 2 new cars, that 72" plasma tv, You go ahead and borrow the money, promising the bank that because you are spending more, it will stimulate the economy, so you can make more.. Ridiculous!!!
Actually, I DO know how the system works and why. The truth is the dollar has value, because we or anyone else assign's it value by accepting it as payment for goods and/or services. If it was no longer acceptable as a medium of currency, then it would have no value.
If the debt were paid off, it would simply reduce the amount of taxes we would be paying to the government.
btw expanding debt, does not expand the economy. That's like saying, having more credit card debt expands your household's economy. You do't have enough money for that big house, those 2 new cars, that 72" plasma tv, You go ahead and borrow the money, promising the bank that because you are spending more, it will stimulate the economy, so you can make more.. Ridiculous!!!
Actually, I DO know how the system works and why. The truth is the dollar has value, because we or anyone else assign's it value by accepting it as payment for goods and/or services. If it was no longer acceptable as a medium of currency, then it would have no value.
If the debt were paid off, it would simply reduce the amount of taxes we would be paying to the government.
btw expanding debt, does not expand the economy. That's like saying, having more credit card debt expands your household's economy. You do't have enough money for that big house, those 2 new cars, that 72" plasma tv, You go ahead and borrow the money, promising the bank that because you are spending more, it will stimulate the economy, so you can make more.. Ridiculous!!!
Again, you're comparing private debt to public debt. Spending on a credit card is not even remotely the same thing as public debt.
"Credit has done a thousand times more to enrich mankind than all the gold mines in the world. It has exalted labour, stimulated manufacture, and pushed commerce over every sea" Daniel Webster
If you notice, the rich countries, and their central banks who have the countries in debt up to their eyeballs are the ones with the high living standards. Now look at the poor countries.
Debt can be bad for th individual and business. Debt for a monetary sovereign is a completely different thing. Debt is money and money is debt. If there was no debt, we would have no money.
Also, you keep saying that we have to dip into savings...or we'll run out of money. Central banks can't run out of money. They can roll over debts indefinately. The serpent eating its own tail. Inflate. Deflate. It matters not to them.
That's simply not true. Your ability to service debt is highly important. Was it fro a vacation or something that will turn out to be a positive investment? What the interest rates were. Is it secured? Someone who makes $100,000 a year with 20,000 debt is in better shape then someone with a 10,000 income and 5,000 of debt, even though the "total debt" is higher for the first person.
For example, the United States has low interest rates, gets to (usually) spend the money on investments in the future, oh and it's not secured by anything.
Meaning, they need to continue to accept paper dollars for our debt. Legal tender for all debts public and private. If they refuse to accept dollars for our dollar denominated debt, the debt no longer exists.
So basically, they need to keep exporting to us....and building dollar reserves to keep the dollar strong....if they ever want to get paid in full value. We control the value of what they will be paid....As greenspan said, we can always gaurentee payment, we just cannot gaurentee the value of said payments.
Debt is debt. Someone has to pay it back, and in an amount greater than the debt itself. The only winner, is the lender, if they get paid back.
You know, the understanding of national debt is pathetic. Why dont you actually make an effort to learn about fiscal and monetary policy, how debt works, tax and diminishing utility - and then voice your opinions on a public forum.
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