Road to recovery.
That will be one of those generational sayings if it stays relevant for 4 more years.
I'm saying that if our fiat currency system rests entirely on confidence, then people need to think the debt matters and our government is funded by tax dollars, not money the Federal Reserve hands out for treasuries.
Nations we owe money too need to think we take our debt seriously.
And for those who keep advocating deficit spending or QE to reduce unemployment, what happens when each new $1 in debt creates less than $1 in new GDP?
http://www.zerohedge.com/news/guest...debt-buildup-triggers-another-financial-shock
Mathematically, that brings to mind another crisis in years ahead. Or spending $1 million to create 1 new job.
The world isn't producing any more additional oil each day, hasn't really for years now, and yet our exponential growth on paper must continue onwards.
At ~$17 trillion in debt with no end in sight, it should be clear to anyone with a brain that we don't treat it seriously.People in foreign countries see posts like yours and they flat out know that we don't take the debt seriously.
At ~$17 trillion in debt with no end in sight, it should be clear to anyone with a brain that we don't treat it seriously.
Well, it's more a question of do we take inflation seriously vs the interest rates on long term treasuries. As long as we do, we are taking our debt seriously.People in foreign countries see posts like yours and they flat out know that we don't take the debt seriously. Because if you win, our credit, and our creditors, are screwed.
Then why do we have to pay it back if it isn't like loans at all?
Senate Majority Leader Harry M. Reid (D-Nev.) continues to demand that Boehner open up the government by passing the Senates funding legislation and then broader fiscal talks could begin.
Source: http://www.washingtonpost.com/polit...1aa1fe-305f-11e3-8906-3daa2bcde110_story.html
Isn't that the same as saying "Give me everything I want first, then maybe we will discuss your issues?"![]()
Isn't that the problem? Democrats and most neutrals perceive thats what Republicans have been doing for the last half decade now. Thats the problem when you employ a strategy known to game theorists as "Chicken". If one side doesn't go out of the way, everyone is screwed. The longer the Republicans used their unsustainable strategy, the higher the odds the Democrats would eventually fight back. That's the real problem - Republicans have basically turned Democrats into acting the same way as they are, simply because after a certain period of time when you employ a chicken strategy there is no other choice.
At ~$17 trillion in debt with no end in sight, it should be clear to anyone with a brain that we don't treat it seriously.
No, it's more like if you have two roommates in an apartment who need to cosign a rent check, only one of them refuses to do so because he doesn't like how his friend hasn't been doing the dishes regularly or vacuuming, and he's been seeing this gross girlfriend whose been giving him the creeps.
Senate Majority Leader Harry M. Reid (D-Nev.) continues to demand that Boehner open up the government by passing the Senates funding legislation and then broader fiscal talks could begin.
Source: http://www.washingtonpost.com/polit...1aa1fe-305f-11e3-8906-3daa2bcde110_story.html
Isn't that the same as saying "Give me everything I want first, then maybe we will discuss your issues?"![]()
Ya know, most rational individuals could respond to your post with ...
"Isn't that the problem? Republicans and most realists perceive thats what Democrats have been doing for the last half decade now. Thats the problem when you employ a strategy known to game theorists as "Chicken". If one side doesn't go out of the way, everyone is screwed. The longer the Democrats used their unsustainable strategy, the higher the odds the Republicans would eventually fight back. That's the real problem - Democrats have basically turned Republicans into acting the same way as they are, simply because after a certain period of time when you employ a chicken strategy there is no other choice."
As near as I can tell, Republicans have offered compromise after compromise, while the Obamacrats keep up with the same old, 'My way or the highway'.
Er, I see. When you borrow money loan style, you are borrowing their money, so that you have money, but owe it and more back, and the lender doesn't have that money. And with that loan, you spend that money. And if the lender said "gimme my money" and you had spent that money, you go bankrupt.
That's different from the US.
In the US, the "lender" is actually "the buyer/the depositor" and the borrower is "the seller/the bank". Despite appearances, the Fed is totally part of the US government.
What's going on is that the buyer of bonds is this:
US offers $10 treasury bond
Buyer spends $10 cash for $10 bond.
Buyer now owns $10 bond. It's worth $10+interest.
If buyer holds $10 bond to term, buyer might end up with $10.15 cash at the end of (short term), otherwise the buyer can use that $10 bond as $10 because bonds and cash are both dollars backed by the US government.
In the fairy tale world that a bond hold can demand their bond be immediately converted to cash, the $10 bond becomes $10 cash. The bond is gone and the money turns into cash again. This is an automatic function of accounting at the Federal Reserve (and Treasury).
So short answer is, the "lenders" already own their dollars like you own your dollars in a savings account. Everyone owns their assets. There's no money shortage or leverage risk.