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Financial system cannot operate without snowballing debt since all the money come into existence as "debt", economy growth demands money supply i.e. "debt" growth to infinity and beyond. Debt levels mean nothing for as long as people are willing to jump over themselves to get money.
Financial system cannot operate without snowballing debt since all the money come into existence as "debt", economy growth demands money supply i.e. "debt" growth to infinity and beyond. Debt levels mean nothing for as long as people are willing to jump over themselves to get money.
Are infinite "growth" and infinite debt expansion possible in a finite realm?
This system is tragically absurd. It will crash and burn because it must- that is what it was designed to do. This system was set up for failure from the beginning.
However, the sovereign debt is just the tip of the debt iceberg. You have state, municipal, corporate, household, and financial institution debt. Together with the sovereign debt, that adds up to $77.4T.
But wait, there's more! This is just a funded portion of the debt, where the US government sells a bond and somebody owns that bond. It doesn't include liabilities like what the government owes for Social Security, or guaranteed bank deposits, or mortgages, or student loans, or all that nonsense. These are debts that the government hasn't figured out how to pay for yet. Alltogether they amount to $147.7T.
So total debt + unfunded liabilities= $225.1T.
The GDP is currently $21T and declining.
Many people say that we're the "cleanest dirty shirt in the hamper." They're wrong. We're one of the most financially messed up nations in the world.
You don’t really understand what the debt means so what is the point of even engaging in this conversation.
However, the sovereign debt is just the tip of the debt iceberg. You have state, municipal, corporate, household, and financial institution debt. Together with the sovereign debt, that adds up to $77.4T.
But wait, there's more! This is just a funded portion of the debt, where the US government sells a bond and somebody owns that bond. It doesn't include liabilities like what the government owes for Social Security, or guaranteed bank deposits, or mortgages, or student loans, or all that nonsense. These are debts that the government hasn't figured out how to pay for yet. Alltogether they amount to $147.7T.
So total debt + unfunded liabilities= $225.1T.
The GDP is currently $21T and declining.
Many people say that we're the "cleanest dirty shirt in the hamper." They're wrong. We're one of the most financially messed up nations in the world.
The only thing holding up the farce is the dollar being the world's reserve currency. This is why, before that changes, there will be a major war, because to allow, China, for instance or a "world currency"....would doom the US. We will bring everyone down with us. Misery loves company.
Comrade Taggerung, did you get those numbers at the Socialist Worker's Party meeting?
The national debt is exactly $0.
The federal debt is $25.6 TRILLION, but $18+ TRILLION is owed to Americans and American entities.
Quote:
Originally Posted by Taggerung
But wait, there's more! This is just a funded portion of the debt, where the US government sells a bond and somebody owns that bond. It doesn't include liabilities like what the government owes for Social Security, or guaranteed bank deposits, or mortgages, or student loans, or all that nonsense. These are debts that the government hasn't figured out how to pay for yet. Alltogether they amount to $147.7T.
There's a lot more that they didn't tell you at the Socialist Worker's Party meeting.
There's receivables.
Why did you not count them?
And, as someone else astutely noted, there's assets that you ignored.
Quote:
Originally Posted by Taggerung
So total debt + unfunded liabilities= $225.1T.
The GDP is currently $21T and declining.
Your Socialist Worker's Party meeting forget to mention that's over the next 75 years.
In other words, it comes to about $3 TRILLION per year for the next 75 years.
Quote:
Originally Posted by Mathguy
Please explain what I'm missing then.
1. We're still paying our obligations (the very definition of insolvent).
2. If you're pushing a bankruptcy angle, you make no recognition of assets.
However, the sovereign debt is just the tip of the debt iceberg. You have state, municipal, corporate, household, and financial institution debt. Together with the sovereign debt, that adds up to $77.4T.
But wait, there's more! This is just a funded portion of the debt, where the US government sells a bond and somebody owns that bond. It doesn't include liabilities like what the government owes for Social Security, or guaranteed bank deposits, or mortgages, or student loans, or all that nonsense. These are debts that the government hasn't figured out how to pay for yet. Alltogether they amount to $147.7T.
So total debt + unfunded liabilities= $225.1T.
The GDP is currently $21T and declining.
Many people say that we're the "cleanest dirty shirt in the hamper." They're wrong. We're one of the most financially messed up nations in the world.
might is right. Do US really have to pay back this debt to anyone? Can anyone compel and force US to pay it's debt to anyone? lol Think about it.
Bernie is wrong, we are not the wealthiest country on earth.
Not per capita and certainly not when factoring in our debt.
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