T Nation

US Debt Explained in Simple English




i like it


Except it's infinitely more complicated than that. You can not compare private and public debt. Households can not print money or issue bonds, and since the Fed controls interest rates there will always be a market for government securities. Government debt can be rolled over until the end of time with no negative effects on the economy.


2011 congress.
My Most Want to Punch in the Throat and Face list 2012.


And yet I'm still more pissed off about the $2.00/mo. "convenience fee" Verizon is trying to sneak in. Unchecked gov't debt just makes me apathetic.


The scary thing is THIS Congress is the one "the people" voted in to get rid of the previous Congress.....The Democrat-led Congress is looking better and better....thanks to the Tea Party holding the GOP hostage....It's always the few who hold the most power.....


Households don't have a military to tell Citibank to fuck off either.


That whole Super Congress was the biggest pass the buck scam I had ever seen. That shit alone made me lose respect for the people in office. A NYC public grade school kid knows when he is being put in the "special Class" so the school can offset the average. But the people we put in office could not figure this shit out.

Matter of fact a punch is to good. This is "tennis ball in a wet tube sock" time


I'm convinced the Teahadists are out to destroy this country.


Ditto. They were sent to Congress to "stick it" to Congress, no matter what it does to the country. Seriously, a second depression is better than a recession? Letting this country lose it's credit rating is worth saying "fuck you" to the lifers in DC? The GOP is seriously fucked now those people have Boehner and the party by the balls.


On the Intelligence (ha) and the Financial Services Committee.

Leader of the Tea Party Caucus.


LOL@pearl necklace


Not Michele, but another crazy teahadist.


I love Crazy Happy bitches.

I bet she smells like old Hay.


People need to understand that balancing the budget for the sake of balancing the budget makes absolutely no economic sense. Despite what Obama and the rest of the harbingers of doom would have us believe, the government CAN NOT go broke. We are not Greece! Where Greece had no control over the Euro, we have total sovereign control over the $ and can (and should) continue to run a deficit indefinitely. This principle is the very foundation of a fiat money system. Money growth is not only NOT a bad thing, but is absolutely essential for stable economic growth. The concept of government debt is a holdover from the gold standard era and has no application in today's economy. Instead of thinking of the deficit as "debt", think of it as money growth. Every dollar the government spends beyond what it collects in taxes represents another dollar added to the economy. This infusion of cash lowers the interest rate and spurs private investment. In the bottom line, deficit spending = money growth = private sector savings, penny for penny.

Understand that I am not advocating limitless money expansion. There is a resource contraint whereby if we grow money faster than our consumption/investment/etc. can expand, we will face unnecessary inflation. However, this is why we have the Fed and monetary policy tools to make micro adjustments to keep the economy on track.

In case you have forgotten, the US has run a deficit for 99% of the country's history. A period with one of the largest deficits in history, WWII, also saw some of the fastest economic growth ever. The few times we've run a surplus have resulted in recessions. Instead of focusing on the deficit (which is largely arbitrary and endogenous), we should be focusing on real issues like unemployment.


Agree, but the GOP and teahadists are the harbingers of doom.

They get elected through fear and fear alone.


Our biggest problem is Fear and Fear Mongers. People get scared think the world is going to fall around them and stop spending. Companies Fear going under and go for the cheapest way out. And all this shit starts with the fighting in congress over BS and Power.


No negative consequences for the economy?


Yup, I am sure the expectation of hyperinflation or the constant fear of the silent expropriation the monetizing the public debt would be would not influence any investment decision whatsoever.

Like new machinery instead of guns, canned food and lots of ammo.

Which is of course why, no government that had a printing press has ever collapsed.


Actually, you will have a depression ,you can have it now or much, much worse later.

Second, yes they are out to destroy the system.

The system that sucks the productive class dry and enriches special interest and the super wealthy.

If anyone mistakes the leeches for the host, i.e. this corrupt cesspool for "the country", yeah well, the "teahadists" are a terrible, terrible threat.












And, the current champion, Zimbabwe.

Question, what happened in all of these countries that never, ever, could possibly happen if you control your very own printing press?