American Economics Thread


LesAdieux

Junior Member
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to bring down the debt/GDP ratio, intra government holdings and Fed's balance usually don't count. excluding intra government holdings is sheer accounting manipulations; and treasury purchased by fed will turn into real debt once it comes off Fed's balance.

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EU sets a 3% deficit limit for it's member states, and the US is going for 15%, part of the American exceptionism! it's interesting to see how will it finance the deficit after the normalization.
 

Michaelsinodef

Junior Member
Registered Member
EU sets a 3% deficit limit for it's member states, and the US is going for 15%, part of the American exceptionism! it's interesting to see how will it finance the deficit after the normalization.
There was some stupid talk about a 'great reset'.

So maybe that or maybe the US will led their vassals to 'just cut debts' for some stupid reason or whatever, although that would severely undermine current financial system and also the dollar position/status.
They could maybe convince nations by saying they want to create a new world currency led by the UN, and that every nation has a stake in it depending on their economy size.

Besides the above wild ideas i don't see how else they are gonna finance the debt.
 

LesAdieux

Junior Member
There was some stupid talk about a 'great reset'.

So maybe that or maybe the US will led their vassals to 'just cut debts' for some stupid reason or whatever, although that would severely undermine current financial system and also the dollar position/status.
They could maybe convince nations by saying they want to create a new world currency led by the UN, and that every nation has a stake in it depending on their economy size.

Besides the above wild ideas i don't see how else they are gonna finance the debt.

cutting debt is almost impossible under democratic capitalism. it's one of the fundamental flaws of the system.

democracy means you always have opposition, which means you cannot have your way as you wished, you can only have "half of your way".

the Democrat's way is: tax and spend, but raise tax is hard, even rolling back Republican's tax cuts is nearly impossible, so Democrats usually get half of their way: spend.

the Republican's way is: cut tax, cut spending. The Democrats will resist any spending cut, so the Republicans usually get half of their way: cut tax.

the gap getting wider and wider, and the debt piles up.
 

antiterror13

Brigadier
cutting debt is almost impossible under democratic capitalism. it's one of the fundamental flaws of the system.

democracy means you always have opposition, which means you cannot have your way as you wished, you can only have "half of your way".

the Democrat's way is: tax and spend, but raise tax is hard, even rolling back Republican's tax cuts is nearly impossible, so Democrats usually get half of their way: spend.

the Republican's way is: cut tax, cut spending. The Democrats will resist any spending cut, so the Republicans usually get half of their way: cut tax.

the gap getting wider and wider, and the debt piles up.

But, it works very well in NZ until C19. NZ had a very low debt/GDP, just increased because of C19
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NZ govt is much more generous than the US to social spending .... the unemployment benefit in in NZ is very very good relatively
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Perhaps NZ spend very little in military, unlike the US
 

LesAdieux

Junior Member
But, it works very well in NZ until C19. NZ had a very low debt/GDP, just increased because of C19
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NZ govt is much more generous than the US to social spending .... the unemployment benefit in in NZ is very very good relatively
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Perhaps NZ spend very little in military, unlike the US

this may have something to do with the demographic structure, in a homogenous society, people are willing to compromise.
 

styx

Junior Member
Registered Member
cutting debt is almost impossible under democratic capitalism. it's one of the fundamental flaws of the system.

democracy means you always have opposition, which means you cannot have your way as you wished, you can only have "half of your way".

the Democrat's way is: tax and spend, but raise tax is hard, even rolling back Republican's tax cuts is nearly impossible, so Democrats usually get half of their way: spend.

the Republican's way is: cut tax, cut spending. The Democrats will resist any spending cut, so the Republicans usually get half of their way: cut tax.

the gap getting wider and wider, and the debt piles up.
the last president who reduced debt was bill clinton
 

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