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It is quite simply a fact that the us government can only voluntarily default.
Did I say something about default?
It is quite simply a fact that the us government can only voluntarily default.
I understand. The issue is printing money without consequence.
Trump is correct! This will lead to some very interesting discussion.
Trump: U.S. will never default 'because you print the money' - CNNPolitics.com
Maybe Trump listened to Greenspan?
Greenspan: US "Can Pay Any Debt It Has Because We Can Always Print Money" | RealClearPolitics
(Trump is still an idiot, but the fact he has said this is a huge deal.)
Trump is correct! This will lead to some very interesting discussion.
Trump: U.S. will never default 'because you print the money' - CNNPolitics.com
Maybe Trump listened to Greenspan?
Greenspan: US "Can Pay Any Debt It Has Because We Can Always Print Money" | RealClearPolitics
(Trump is still an idiot, but the fact he has said this is a huge deal.)
All it proves is what I have long thought...Trump is a macroeconomic ignoramus.
This ridiculous, dangerous, weak, mooch-based, unimaginative theory is what simplistic economists suggest...and none of them can offer the slightest, unbiased historical statistics/proof that it would actually work (i.e. help the economy).
If you hear someone suggest such a thing then you KNOW that they do not understand how macroeconomics works in the real world. They probably have never been either successful entrepreneurs and/or investors (like Krugman whose entire real world experience is with that disaster, Enron).
Trump is a buffoon...this is just further proof.
And anyone of his fans should realize that if they think this guy is NOT part of the establishment..they are dreaming. This latest 'printing money' nonsense is almost exactly what the establishment/Clinton/the Fed are proposing.
Anyone who thinks this guy is genius is probably as dumb as he is.
One can only hope that he realizes that it is a truism that has very little to do with real life. There are actually people that think this means a country can borrow with impunity.
Except QE hasn't caused any inflation, after trillions.
a fine argument for expanding it instead of paying the bills, no?
Let me ask you this, what is stopping me from refinancing my house forever?
When the country is experiencing incredibly slow growth with millions unemployed, with stagnant wages, a massive loss of demand.. Spending is the key.
which should have been the strategy in 2009. at this point, i'd be happy with all income being taxed as income above a cap, and a reprioritization of how we spend our tax revenue.
which should have been the strategy in 2009. at this point, i'd be happy with all income being taxed as income above a cap, and a reprioritization of how we spend our tax revenue.
Please, correct me if I'm wrong, I've done very little research into economics (the whole thing kind of baffles me), but wouldn't adding significantly more dollars to the existing pool simply water down the currency and drive up inflation?
We're all still waiting for you to explain to us why we can't "print" money to pay debt. Or should you just say "good day" and abandon another thread? Don't start talking about some other country. Don't use your typical logical fallacies of bad correlation. Just tell us why trump's statement is incorrect. Just walk us thru the steps of what is actually stopping us?
Don't say "massive inflation" because that's not an answer. Even we allow you to suspend disbelief and imagine all of the resource constraints that would require that to be true, we'd still be paying the debt, inflated currency or otherwise.
Don't say "confidence" - because if all you have is feelings then you've got no "statistics/proof" either.
P.S. Trump is an idiot, but the sun shines on even dogs butt sometimes.
It seems to be liberal "policy" to understand how things actually work, while it is conservative policy to imagine things work in the way you would like them to work.
Why else do you think he wants to lower the federal debt? Why he is afraid of inflationary fiat? To gain crossover votes as a Conservative might say? Inflationary fiat is bad for Trump's business as well as bad for every American.One can only hope that he realizes that it is a truism that has very little to do with real life. There are actually people that think this means a country can borrow with impunity.
Well, when dollars enter the economy, they are generally spent in (or given to people who will spend it in short order), which elicits new production. So you aren't just increasing the denominator, you are also increasing the numerator. Plus you have multipliers - secondary and tertiary spending of the same dollars, which also elicits new production. So there is no reason to think that prices would go up.
You do realize that since 2007, between the Fed and the federal government that over $12 trillion (with a 't') has been simply created to try and stimulate the economy (through deficits, QE's and toxic asset purchases)? And this was all at record low interest rates. And still the economy is stagnant and there is zero proof that had the government not done anything and just let the economy fix itself that the economy would not be far better off by now.
There have been recessions/depressions every 6-8 years in American history and almost every one of them ended just fine with the government doing little or nothing to intervene. If that policy worked so well for hundreds of years...why change it now?
That have been shrinking and have been targeted at pet projects/etc, all while you ignore the massive output gap/lost demand in relation to the deficits.through deficits
No negative affects.
And?toxic asset purchases
Yeah, central banks are running out of options, it's why we're looking towards fiscal policy.And this was all at record low interest rates. And still the economy is stagnant
LOL? What? This was the largest crisis since the great depression. Unemployment skyrocketed, people lost homes, desperately deleveraged. Your almost absurd claim that had the government done nothing we would be fine is absolute lunacy. (Thank god for automatic stabilizers.)zero proof that had the government not done anything
Yes, and before the government responded with monetary/fiscal policy, they were longer, more brutal, and happened more often. You never want to mention that.There have been recessions/depressions every 6-8 years in American history
Because it didn't work well for the unemployed, the poor, the people who lost everything..If that policy worked so well for hundreds of years...why change it now?
Explain that to John from Cleveland.Please, correct me if I'm wrong, I've done very little research into economics (the whole thing kind of baffles me), but wouldn't adding significantly more dollars to the existing pool simply water down the currency and drive up inflation?
Yeah. What was the price of beef in 2006? And now? Gas in 2006 then now? Eggs in 2006 then now? Health care insurance in 2006 then now? We have debilitating inflation in the US, folks, even though the federal government is positing an almost non-existent inflationary rate.They did though, about 20% since 2006. Have wages and economic growth kept up?