bigfish528
New member
Nicely said, hopefully the government does something positive and we can improve for everyone's future.
U.S. debt headed toward Greek levels
- Thread starter Ronkh
- Start date
Nicely said, hopefully the government does something positive and we can improve for everyone's future.
LostHighway
New member
The situation of the US is in no way analogous to that of Greece. The US dollar is still the world's reserve currency and that is not likely to change in the next couple decades. We're also either the largest, or second largest depending on how you count, economy. While our tax system needs major reform we successfully collect most of the taxes legally due. None of this is true of Greece. They gave up control of their currency and hence a large degree of economic autonomy when they signed on to the Euro. They don't produce much and their economy is heavily dependent on tourism. Finally they can't seem to collect the taxes legally due.
The economy of a country is not like that of a person, family or business so long as you control your own currency. The US arguably has too large of a debt as a percentage of GDP but attempting to run the country only on current revenues would act as a major drag on the economy.
The debt/deficit is a sideshow. Both major US political parties serve the interests of the mega-corporations and the 0.1%, although this is not unique to the US. If you want to get angry about something pick a real issue like trade agreements such as the TPP. I would include a hyperlink here but the URL includes a four letter word so it won't fly. Try Googling: global corporatocracy pen stroke
The economy of a country is not like that of a person, family or business so long as you control your own currency. The US arguably has too large of a debt as a percentage of GDP but attempting to run the country only on current revenues would act as a major drag on the economy.
The debt/deficit is a sideshow. Both major US political parties serve the interests of the mega-corporations and the 0.1%, although this is not unique to the US. If you want to get angry about something pick a real issue like trade agreements such as the TPP. I would include a hyperlink here but the URL includes a four letter word so it won't fly. Try Googling: global corporatocracy pen stroke
Bunky
Detailing Gnosis
No matter what the vote, the lenders (banks in Europe) will likely be hungry for some arrangements as they of their money back. Once again greedy lender meets someone in debt that wants more money.
While much of what you say is true, when you control your own currency, inflation will continue to devalue the buying power of said currency. Yes, we can effectively print more money to "pay" our debts, but all that will do is devalue everyone's savings, investments and income, effectively lowering everyone's standard of living. Also, if one of our debt holders decides to stop buying our debt, the cost of that debt may increase to find another suitable creditor willing to take the risk.
LostHighway
New member
The relationship between the money supply and inflation is far from linear and there are more than two variables in play. I'm absolutely no fan of Bernanke and Fed's policies/actions but the hand wringers have been saying for eight years now that QE would imminently lead to hyperinflation and there is zero sign of that happening. Countries like Japan that have attempted to boost inflation as a deflation remedy by putting more money in circulation haven't been having much success. The Fed's policies of driving down interest rates have, however, directly negatively effected the standard of living for huge numbers of retirees. It should be clear by now that the economic models that have dominated neo-liberal policy making (both political parties are/have been effectively ideologically neo-liberal going back at least to Jimmy Carter) for the past thirty-five plus years are deeply flawed. I'm not entirely convinced by the newer theories like MMT but the prevailing neoclassical (and allied variants) economic wisdom is clearly seriously wrong.
Bunky
Detailing Gnosis
We already see it where the banks are just as interested in solving the Greek situation as Greece. It is not like they can call the loans and foreclose on the country. I wonder how much they could get for the ruins.
LostHighway
New member
The Greek situation is sort of a slow motion cluster intercourse. Chancellor Merkel and at least two parts of the Troika are essentially still trying to extract blood from a turnip in the case of Greece. The IMF (one-third pf the the Troika) has belatedly declared that Greece can only survive if the creditors accept a massive haircut and a long (decades) extension in the repayment terms. So far, the ECB and the Euro Group have rejected this, partially out of political concerns and partially because they don't want to set a precedent for other EU debtor nations. Certainly the Greeks got themselves into this but they had outside help digging this hole. I do not see much prospect of a happy resolution to the crisis.
Swanicyouth
New member
May be time to fire up the panzers.
WhyteWizard
New member
What might be worth knowing about Greece.
"The point is that if you really worry that the U.S. might turn into Greece, you should focus your concern on America’s right. Because if the right gets its way on economic policy — slashing spending while blocking any offsetting monetary easing — it will, in effect, bring the policies behind the Greek disaster to America."
If you were in debt, would you try to spend less but at the same time try to be more productive and increase income?
Robert
"The point is that if you really worry that the U.S. might turn into Greece, you should focus your concern on America’s right. Because if the right gets its way on economic policy — slashing spending while blocking any offsetting monetary easing — it will, in effect, bring the policies behind the Greek disaster to America."
If you were in debt, would you try to spend less but at the same time try to be more productive and increase income?
Robert
Swanicyouth
New member
On Thursday an older person came in to pick up some meds.... My cashier was looking oddly at their money... Then, she came up to me and said that there was something wrong with their money and asked if we could take it (we get counterfeit bills from time to time).
So, I looked at the bills. They were silver certificate dollar notes from the 1930s.
I told her you can take these - these were actually worth something. Today's money - who knows.
So, I looked at the bills. They were silver certificate dollar notes from the 1930s.
I told her you can take these - these were actually worth something. Today's money - who knows.
