Maxed Out

[Lord Tammerlain]

The US is not Zimbabwe. Heck, even Mexico and Argentina aren’t Zimbabwe.

If it tries really hard it can be. Just cut all taxes to zero and find the government through the fed buying all debt, then writing it off after 10 years

 

[Jezcoe]

To answer in another way that isnt as “ooh i discovered this shiny thing” way most MMTers describe it the limit on the money supply is when inflation hits.

And that taxation is a control on inflation.

 

[Exquisitor]

To Who?

That is the big question. There is all of this concern about the debt, but who do we actually owe it too? So looking at a debt of $28 Trillionish...

22% of it Intragovernmental holdings. So that is over 8 1/2 Trillion that the Government owes to itself. What is the value of that debt?

Of the rest of it... the 78% that is public holdings. The Federal Reserve holds a little over $7 Trillion of that piece of the pie.... so what is the value of that debt?

So we are looking at a over $15 Trillion of that debt basically owed to ourselves. And yes... the rest is an enormous sum of money but seeing as how the largest foreign holder of US debt is Japan... it doesn't seem quite as scary.

Debt is owed to people that hold bonds, to the Chinese and Mideast countries.

When I borrow from my cash asset, I must pay it back, or I have less cash asset.

We don't have a cash asset other than the inflating printing press.

 

[Exquisitor]

No you are not, the fed can make as much money as the US government needs

I believe it holds 30% of US federal government debt

Yes we are maxed out, and if we don't do something about it, we'll find out.

 

[Exquisitor]

In the past, I DID live off the credit card.

I recall realizing that if I didn't pay off the credit card to zero every month, I'd be paying for that cheeseburger bought in the Hilton Hawaiian Village for the rest of my life.

Paid it off. Haven't been back to the Hilton Hawaiian Village since or seen the lovely young lady that accompanied me for a long while. Both the girl and the cheeseburger were quite enjoyable. So is the current financial stability.

We make choices. My individual choices are informed by my experience and seem to get more beneficial over time.

The decisions of our government are continuously more stupid on every succeeding day in every perceivable way in any area you might care to cite.

What's wrong with this picture?

Why do you create this for yourself?

So far the Demoncraps only did stupid to give Reprobates any legitimacy in 2008 and extend the Bush tax cuts.

 

[bomberfox]

Yes we are maxed out, and if we don't do something about it, we'll find out.

Maxing out depends on how many resources we have.

 

[code1211]

The US Sovereign debt is not like household debt.

True. I never had the ability to print my own money.

 

[code1211]

Why do you create this for yourself?

So far the Demoncraps only did stupid to give Reprobates any legitimacy in 2008 and extend the Bush tax cuts.

I'm missing the connection between your post and mine.

 

[Exquisitor]

I'm missing the connection between your post and mine.

You're complaining about the Government and feeding your Creative energies in a way other than the solution.

 

[Exquisitor]

I'm missing the connection between your post and mine.

You might complain about "the solution," being "der solution," but look what they were handing me, and I was nice and didn't make them take Hillary (I listened to my Russian Trolls).

 

[code1211]

You're complaining about the Government and feeding your Creative energies in a way other than the solution.

No help.

 

[OrphanSlug]

Anyone else curious why all of a sudden we are "maxed out?"

Not last year, the year before, 4 years ago, or whatever else... all of a sudden now.

 

[code1211]

You might complain about "the solution," being "der solution," but look what they were handing me, and I was nice and didn't make them take Hillary (I listened to my Russian Trolls).

Still no connection.

Your thinking seems to be running independently from what I posted.

 

[Exquisitor]

Still no connection.

Your thinking seems to be running independently from what I posted.

I highlighted the part of your post I was speaking to, but it's under the scroll.

 

[Mircea]

we dont have to pay it back.

Actually, you do, you just don't have to pay it all back tomorrow.

I'm guessing people don't quite grasp the concept of a 30-year treasury bond.

I'm sorry, did I miss the part where the dollar is no longer the global currency?

That's short-sighted. Nothing lasts forever.

China, Japan and Korea have been in negotiations for a unified Asian currency for some time. I wouldn't dare speculate on what they might call it.

In typical Asian fashion, they move slowly and deliberately, and I'd venture to guess they'll use supercomputers to analyze Billions of scenarios from every angle before they finally introduce it.

And then 5 Billion people will no longer be using the US Dollar.

Sucks to be you.

 

[j brown's body]

Maxed Out:

We're going to be paying over half a trillion dollars in Debt per year.

If it goes any higher, we won't be able to pay it back with even a trillion dollars a year.

So pay for your infrastructure and then balance that budget.

Are we presently rolling the half a trillion?

Much of this is because it has been put off for too long. Put it off longer and it will cost more.

 

[Exquisitor]

Much of this is because it has been put off for too long. Put it off longer and it will cost more.

That is why a stitch in time saves nine.

If we had had a little more stimulus, minimum wage, highways bill and education in a timely manner under Obama and Trump could have ruined an even better economy with his tax cut.

 

[Tbird]

Do you know what you mean by, "Should not have done?"

Consider if we let Trump and the Republicans get away with they way they behave?

We're all so much better off under Biden.

How can you say that? He is a failure and we will have to pay the price.

 

[Exquisitor]

How can you say that? He is a failure and we will have to pay the price.

So is it unto you.

He hasn't even started yet and already he's a failure?

What price is there for cutting revenue and maxing out?

 

[mrjurrs]

Actually, you do, you just don't have to pay it all back tomorrow.

I'm guessing people don't quite grasp the concept of a 30-year treasury bond.



That's short-sighted. Nothing lasts forever.

China, Japan and Korea have been in negotiations for a unified Asian currency for some time. I wouldn't dare speculate on what they might call it.

In typical Asian fashion, they move slowly and deliberately, and I'd venture to guess they'll use supercomputers to analyze Billions of scenarios from every angle before they finally introduce it.

And then 5 Billion people will no longer be using the US Dollar.

Sucks to be you.

Are you holding your breath?

 

[Patriotic Voter]

No, my instructions are put what you need on the credit card and then start paying it back.

You never identified "it" because whatever "it" is, actually does not exist. Finances do not work the way Republicans say they do either personally or publicly.

 

[highroller]

True. I never had the ability to print my own money.

Or had the ability to tax people to pay for common resources like roads, dams, and schools.

 

[highroller]

Actually, you do, you just don't have to pay it all back tomorrow.

I'm guessing people don't quite grasp the concept of a 30-year treasury bond.



That's short-sighted. Nothing lasts forever.

China, Japan and Korea have been in negotiations for a unified Asian currency for some time. I wouldn't dare speculate on what they might call it.

In typical Asian fashion, they move slowly and deliberately, and I'd venture to guess they'll use supercomputers to analyze Billions of scenarios from every angle before they finally introduce it.

And then 5 Billion people will no longer be using the US Dollar.

Sucks to be you.

It depends on what you can purchase with that currency. China would have to give up a lot of control for their currency to reach reserve status. Who in their right mind would buy a currency whose assets are in a communist country?

 

[code1211]

Anyone else curious why all of a sudden we are "maxed out?"

Not last year, the year before, 4 years ago, or whatever else... all of a sudden now.

The runaway spending was initiated by the first of the two worst presidents that ever served back to back: W. He almost doubled the debt.

Obama about doubled the debt left by W. For perspective, Clinton, the debt grew by less than $1Trillion and actually strung four years of surplus together ended in 2001.

Trump slowed the rate of increase under Obama and W. through the end of 2019, but was still a deficit producer. Due to the rules for what we laughingly call "budgeting" at the Federal level we are condemned to deficits forever.

Enter Biden. He is spending $1Trillion left over from Trump's Covid Stimulus, $2Trillion from his own, $3Trillion in "Infrastructure Spending" and the normal and usual $1Trillion in overspending.

It used to take about 100 months to grow the National Debt by that amount. Biden's going to do it 100 days. This is really quite amazing.

Along with his attacks on the Constitution, now saying that Amendments aren't real laws, this growth of the debt is amazing.

You can vote your way into Socialism. You'll need to shoot your way out.

 

[code1211]

I highlighted the part of your post I was speaking to, but it's under the scroll.

No help. I posted about the stupidity of government.

How you leapt from there to the ideas you posted is a mystery.