Message from @NewRogernomics
Discord ID: 649084078586331136
look at where hong was and where it is now in terms of global shipping, that was a big part of that spending
China has just so many inefficiencies in their economy that are state driven, that the US could take advantage of...it it finally cut out it's own govt spending issues and ran a surplus one day.
nah my dude, it doesnt work that way
we can't run gov surplus
Lol. Not for many decades at this point...the debt is too high.
gov surplus would cause massive depression unless private debt exploded by tens of trillions per year
absolutely not
national debt is a non issue, there is nothing to it, it's just a bookkeeping device
You couldn't run a surplus for ages away....but then the China-US competition is going to run deep into the future.
your heart is in the right place but you really don't know what you are talking about
gov surplus isn't like a household surplus we can always pay usd denominated debt
macro isn't just micro scaled up
I know that it is a long-term thing, you have to pay off over a long period of time as to not cause issues. 😛
the us even pretending to run surpluses is what causes most of our problem, it lead directly to offshoring everything to china
no, you dont have to pay it off at all, that's not the purpose of the national debt
I used to live in New Zealand, which purposely doesn't pay off the debt, as to not mess up the economy, even though it could probably pay it off outright.
no country using a modern fiat currency can pay off their national debt, it's literally impossible
Well yep.
that's not a bad thing, that's just a feature of monetary economy as opposed to commodity based barter economy
Though you can still keep it to a low level.
no real need to do that either
it's a non issue, really depends on unspent national income and how much employment you want
The US would really have to mess up to end up like Greece of course.
completely different situation, greece is part of a monetary union with other states, they cant devalue or use monetary policy at all
if you owe debt in a 'foreign' currency, all bets are off
EU is a monetary union but not a fiscal union, ulike the US where california taxes are spent in alabam, as well
Well of course, though my point is that what you can do varies by country.
there is no point there, the us can't 'end up like greece' same way denmark cant either. they stayed out of the euro for exactly that reason
Greece had widespread government inefficiencies and corruption that led to that mess.
nah, greece situatin is directly related to the Euro and the monetary union
germany and some others run a surplus, so the other euro countries are stuck because they dont have a fiscal union and they are limited by rules as to what they can do via debt
greek situation was 100% predicted in 90s
Euro zone is a vendor financing scheme for germany, there is nothing the greeks and similar countries could do
Think we are talking about different things. I am talking about a government budget surplus, and the debt directly related only to that.
gov budget surplus is terrible goal under fiat monetary system. the greeks were done no matter what they did as long euro zone has no fiscal union
we arent talking about different things
you just dont understand what you are talking about
i understand why you think the way you do though