Fucking boomers dont understand how money works. The treasury (or the fed in the us) can't just print money. It lends money to the government. Money the government has to pay back usually with taxes. You can only print money without borrowing if there is growth because printing money always leads to inflation (which can only be countered by growth).
Well thats incorrect, you can always print more, but it will devalue due to inflation. You have to keep a valance between inflation and growth.
Likewise you can introduce scarcity to increase the value of the currency.
Any how, all this money governments are printing (borrowing) will lead to inflation and credit score downgrades. We will have to "pay" back the loan with taxes (the fed will simply destroy the returned money).
No they don't. Make your own fed or nationalize it.
Jacob Morales
The solution is, we're expecting a lot of growth after the Chinese real estate bubble bursts due to the Coronavirus and the United States is the last super power remaining.
The Chinese economy and CCP regime was dependent on very high GDP growth. They haven't had a recession since 1976.
gotta wonder if the billions of dollars that we give to israel is somehow connected to the debt we owe the bankers
Brandon Ward
Australian boomers know best. If anything goes wrong we can always sell land to China.
Anthony Howard
Like what's the Fed going to do if the US government just turns round and says "we're not paying you back, and we're closing you down"? Complain? To whom? Its very existence is beholden to the US government putting up with it.
Didn’t the Treasury just take over the Fed? Did I miss something?
Wyatt Cruz
>you have to keep a balance between inflation and growth Well, that there is the problem. There's bloat in the fed in our case because the fuckers have been extorting the US taxpayer to fund other nations. It's why Trump made the fed waive interest rates and renegotiated trade deals to favor the US more, they no longer get a cut through interest and to top it off there's growth. This is a re-balancing and the fed being held accountable.
Andrew Stewart
As much as I hate boomers, it's not just them.
Most westerners don't have a clue how money truly is, why it has value or where it comes from. They just assume the status quo is forever and get shocked every 10 years when the banks need bigger and bigger bailouts followed by a further hollowing out of the middle class.
Most of them think that debt is good and more debt is a sign of economic strength.
Jaxon Cook
That's completely false. I don't know what you're doing in Australia. But in the US, we're not paying back anything. We're just tacking new debt onto our existing debt and forgetting about it. And we repeat this process endlessly, as if it was sustainable. Our debt currently sits at about 24 trillion dollars with no end in sight. There are three ways this can ruin us (and the world economy by extension):
1) Our debt becomes so great that we can no longer service even the interest on it.
2) The interest rate rises far enough that we can no longer service the interest on our debt.
3) The world absolutely loses faith in the dollar and strips it of reserve currency status, or starts pricing oil in something else.
The whole developed world is operating according to an economic model that is simply not sustainable.
Xavier Brooks
Yeah we're pretty cucked by China at this point.
Jeremiah Myers
as long as the banks don’t feel like forcing your fiat money into inflation printing more doesn’t matter.
They actually control the economy, the states are their hostages today. Even more so than the used to be as most of them don’t even issue their own curreny but are bound up by the catastrophic Euro.
Henry Davis
>The whole developed world is operating according to an economic model that is simply not sustainable. That's why it doesn't matter to pay it back. The "debt" is just large scary number to make the layman believe he has to do something about it but it's just fear-mongering. If the debt were a serious matter we wouldn't have things like foreign aid or foreign interests lobbyists.
Asher Cox
The other way around Nigel they would Just crash it and go to another privite central bank the Fed is not the only one
Ayden James
So you're telling me that the rest of the world is going to maintain faith in the US government (and the US dollar) if our debt becomes so great that we start defaulting on our obligations? There are only TWO things keeping this funny-money gravy train rolling for the US:
1) The fact that oil is priced in dollars (the petrodollar). 2) The fact that the dollar is the world's reserve currency.
Both of those things require the world to put faith in our country and our currency.
David Myers
No recession since 1976 and nobody questions that?
Ryan Green
you don't understand how money works simply put - money is worthless, now more than ever. it's all relative, and in the digital age, it's literally infinite. debt? just a number. wealth? the same. yes there is a larger picture to this, but that is solely to the benefit of any entity capable of managing the entire thing. you, as an individual, have access to a pittance compared to the total amount floating around. that amount climbs higher and higher, as the perceived value increases to those who don't have any, and lower to those who have too much, meaning when they "give back" they're reaping the benefits of labor and production at a significantly lower cost than the last time they "gave back" it's not news, but the inevitable collapse will make the obvious truly apparent, as it's normally hidden and obscured. invest your worthless numbers into things that matter, shelter, weapons, livestock
Jaxson Hughes
Look up “fiat currency”
Jose Butler
Defaulting on what obligations exactly? Obligated to who?
Gabriel Jones
Step 1: Fed takes all toxic debts onto its balance sheets Step 2: Treasury prints enough to pay off national debts Step 3: now that dollar is printed into the ground, release gold-backed treasury notes
Welcome to the future friend.
John James
they're gonna run out in two weeks, believe me!
Samuel Fisher
>You have to keep a valance between inflation and growth. In reality you don't. The dollar is at an all time strength despite record QE.
All 24 trillion dollars of obligation. It doesn't matter if it's to the Federal reserve, or to China, or to individual bondholders. If the world witnesses our debt become so large that we can no longer deal with the interest on it unless we:
1) Default, or 2) Print more money.
... They're gonna bail out on us. Goodbye petrodollar. Goodbye reserve currency. Goodbye life as you've known it. How do you really fucking think that we can just add another 1.5 trillion dollars of debt to our total every year and be okay?
A fucking drunk nigger could tell you that its gonna fail.
David Campbell
>Q.E.
Ethan Murphy
>All 24 trillion dollars of obligation That's not an obligation, you retard. It's a fuckton of pointless interest tacked onto obligations that have been paid in one form or another already.
Oliver Evans
>can't just print money. It actually can though
Robert Smith
God you're fucking stupid...
Jose Jenkins
>Noooo you can't just give everyone money!! It's not fair! Everyone should just starve and die!
You’re right except >pay back with taxes ...which would require the Government to take out another loan as it can’t produce any money itself. Paying back the debt was literally never going to happen, it’s been this way since 1913. We are slaves.
