U.S. Default: It's Not If But When

Discussion in 'Economics' started by schizo, Sep 30, 2021.

When do you believe the U.S.A. will default?

Poll closed Oct 30, 2021.
  1. 1) Within 12 months.

    0 vote(s)
    0.0%
  2. 2) Within 5 years.

    0 vote(s)
    0.0%
  3. 3) Within 10 years.

    3 vote(s)
    11.1%
  4. 4) Never.

    18 vote(s)
    66.7%
  5. 5) Not before we nuke China first, who hold most of our debt.

    6 vote(s)
    22.2%
  1. SunTrader

    SunTrader

    Ummm have to break it to you but ET (yet another one of those acronyms) is social media.
    1. websites and applications that enable users to create and share content or to participate in social networking.
    But I too don't do Facebook, Twitter, Instagram, Tik Tok if that is what you are referring to in particular.
     
    #41     Oct 3, 2021
  2. piezoe

    piezoe

    I refuse to admit it, but I think your right! -- just don't tell anyone.
     
    #42     Oct 3, 2021
  3. Overnight

    Overnight

    Actually, the debt ceiling and the government funding deals are two different issues.

    The shutdown has been avoided, and they have until Dec 3rd now to pass a budget bill to fund the government past that point. The Oct 18th deadline (According to Yellen) is still in effect for the default stuff.
     
    #43     Oct 3, 2021
  4. Kalanim

    Kalanim

    It's almost impossible to predict such a thing as default, nevertheless it's possible for the US. There is a huge amount of factors and reasons which influence the US economy, starting from their position on world goods exchange market and ending with governmental policy. As we can see, the US is famous for its harsh protectionism policy which were conducted by the previous president and it literally dropped down some economic indicators like GDP. Nevertheless, in the US interests protection always prevail over economy protection. So, everything will depend on the policy of the present president actually.
     
    #44     Oct 21, 2021
    cobco likes this.
  5. piezoe

    piezoe

    One comes from the other. Deficits represent new money created and spent into the economy. Since printing to spend is frowned upon, U.S. practice is to match new money with Treasury security sales. Without deficits there would be no money for net household savings. Of course deficits can be too large as well as too small. As long as the economy of a nation like the United States grows through some combination of population and productivity growth the deficit and hence the debt will of necessity have to grow to prevent deflation and recession. The normal course for the "debt", which isn't, is to grow until the economy stops growing.

    Perhaps if you guys worried more about the quality of government you could worry less about the fictitious "debt". It is not the size of deficits that matter, but what's being bought and not being bought and whose pockets the new money created ends up in. That's what matters. And if you get that right the deficits won't be too big.

    Y'all are worried about the wrong things. If you start worrying about the right things, the deficits and debt will take care of themselves.
     
    Last edited: Oct 21, 2021
    #45     Oct 21, 2021
  6. SunTrader

    SunTrader

    If only ..... this MMT fairy tale was reality there would be no worry.
     
    #46     Oct 22, 2021
  7. piezoe

    piezoe

    If you stopped to think you'd realize that it is impossible for what you believe is true to be true. Role back to time zero and ask yourself were money to run a private sector economy including money for savings comes from if every year a government runs a balanced budget; thus taxing back out of the private sector exactly to the penny the money spent into the private sector...
     
    Last edited: Oct 22, 2021
    #47     Oct 22, 2021
  8. SunTrader

    SunTrader

    If you stopped to think world economies functioned very well before fractional banking and non-stop money printing.
     
    #48     Oct 22, 2021
  9. No it didn't :p The world was brutal and violent before the concept of credo boosted Italian cities and expanded the GDP potential. In most of the old days, the strong took from the weak and kept them enslaved via serfdom, outright slavery, or personal debt.
     
    #49     Oct 22, 2021
    piezoe likes this.
  10. piezoe

    piezoe

    Thank you! I just now tuned in, and I find that you have beautifully answered a statement I would have been otherwise obligated to answer.
     
    Last edited: Oct 22, 2021
    #50     Oct 22, 2021