Topic: HODL! U.S. debt Alarm (Read 555 times)

US debt is here to stay and Trump cant change it. People are believe in the US economy

The world also entered the 2008 recession in much better economic state than we are entering this one. Interest rates are already at a record low; they have not recovered to any meaningful degree since being cut massively during the last recession. Therefore, they can't be cut again like they were in 2008 to encourage more borrowing and therefore more spending. Debt is skyrocketing. Household debt, government debt, national debt, all way up compared to 12 years ago. Increasing government spending to provide a stimulus (again, which already happened in 2008) will face more resistance and is likely to be smaller due to adding to the already skyrocketing debt. Add in all the new tariffs which are going to apply to huge markets, such as between US-China and between UK-EU, and we are in for a very rocky time. It's going to be bad time to be holding fiat.

It's a necessity, sure, but with some sensible healthcare reforms the US could save literally billions of dollars and still receive better care. By almost every objective measure, the US system is the most expensive, least efficient, least effective and has the worst outcomes of any western nation. The problem is there are too many people who cry "socialism" and stop listening as soon you mention healthcare reform.

I don't think Trump (or anyone else for that matter) can actually do anything to bring the debt down. It's already at a stage where you can calculate forward as to how much debt there is next month, next year, etc. The most they can do (realistically speaking) is to slow down the rate at which the debt is groing. The US is too far gone to actually reduce the debt. It's wishful thinking to expect that.

And no, I don't think that they have spent a second thinking about how they can benefit from crypto. Instead, they have spent their time thinking about how they can firmly regulate it.

The world economy somehow got through the 2008 recession because it wasn't as massive as the concurrent one, I don't know how businesses are going to survive through the recession, or any global tragedy,economic or not. Regardless of how much money there's been put in the hands of the general economy, its safe to say that it is still not enough for 60% of the population to get through the crisis through and through.

Worse part is, I was told that a few countries are charging fines for the people who dare say that their country is going through a recession. That surely is one way to go at it.

Healthcare is way too important in the US, as ridiculous as it is, its a necessity, for the state that US is in, if they don't invest in their health care properly, they won't withhold for long. While the military spending isn't required as much, they could certainly allot the spending into much smarter choices, but alas that's not how things work. :"/

But he cannot do that, in fact no one can, the current system is based on borrowing money to try to accelerate the economic growth, if the US stops printing and borrowing money it will decelerate to the point that it will create a recession or even a depression around the world, there is no way to solve the problem central banks around the world have created except for the implementation of a new economic system and that only happens when the previous one has been proven to not work anymore.

I agree with you. Borrowing money for further development is an integral part of the modern economy. Since there is no better economic model around yet, judging about the economic situation in a country by the size of its debt is a fallacy. If only the countries with much smaller debt were prospering, but this obviously not the case.

Never say never, all they just need the right approach to it. there might have been worst debt than that which they have overcome and I believe they will overcome this too, just might not be in the term of Trump because I don’t know if trump is a curse on then or blessing, he has his own positive side though but without a solid financial system, he his just a failure because this is what could bring down the power of America over the world.

If trump is to win the second term, he needs to do everything possible to bring this debt down rather than increasing it the more before they declare state of emergency on their economy, and I expect him to have been thinking of how they can take advantage of the new cryptocurrency to see what they can do about it.

It's Trump that you are taking about.
He is bound to increase things that is destructive well guess why ?
Because the doesn't know anything about it and he doesn't even care what might happen .. to people who are involved in it.
This is the reason everyone is against the president .

Wish I could find another thread talking about interest rates and inflation, and how much money's printed by a central bank, and how it's quite closely related to GDP, spending, and debt.

Now debt alone is a terrible factor to decide if the economic situations is bad. As someone else mentions above, what you produce economically has to play an important role as well. Especially if, as most economies try to do, the idea is to borrow so you can develop and build an economy that will pay back that debt and then some.

I can think of at least 1 country without external debt (Brunei) that has been very worried about its economy for the past few years since oil price dropped. Had they borrowed money -- and invested their income from oil in sovereign funds for example, instead of lavishing their reserves -- to develop and diversify their economy, they might not be in their problem today with stagnating industries and unemployment.

US will never be able to pay their debt, it is almost impossible to grasp the amount of their debt.
It is absolutely huge.

For sure there is big lobby to go in even bigger debt , to take more money not only to buy stuff from lobbyist niches but also to pay more percents to those who gives out these debts. It would be interesting to see how these interest rates are progressing over time, what are the values of their paid debt monthly and yearly. For sure there would be some interesting stuff

Yeah, Suda might have the youngest population, not sure about it, but it's pretty damn easy when the life expectancy is 64 years, while in Japan is 84. Of course, ho cares about living 20 years more, right?

What people tend to forget is that there is also another indicator of the wealth of those countries.
And the website we talk about also has it, at the bottom

See this small thingy:



Well, on average it will take the Sudanese people 2 lives to achieve this wealth and only if they do not spend a dime!


What was there to restore? Nothing!
In 3 more terms, he will take the debt to 30 trillion the way he started.

the eradication of national debt so far in a term is impossible. We have to give Mr. Trump another 2-3 more terms so he can do it.
In the first term, he did a very good job of restoring the US economy, the next step would be to gradually eliminate bad debt.

Exactly. The amount of debt doesn't inherently matter, particularly when all major world currencies are fiat monies with floating exchange rates. What matters is lending liquidity and ultimately faith in the underlying currency.

I'm not saying the USD will never collapse, but the people perpetually predicting it for the past few decades remind me of this:

As long as USA is capable of paying the debts they have to right now, the future debts still mean nothing to them, you can have 100 trillion dollars in debt and as long as you have 100 years to pay it then there is no problem for them. Now, the real problem is the debt they have to pay right away and since economy is not doing that well and they are making tax cuts that disables to option to get money right away and pay it, they are having trouble paying it.

If they somehow come up with a solution that would pay the current debt then they will not have any problems at all, all they need to do is increase the taxes for the wealthy people again and I am 90% sure that will be what the democrat candidate will do if they win 2020 so the problem will not live that long.

The US government can afford such high levels of debt, because there is a lot of demand for United States Treasury Bonds and the current interest rate is just 3% to 4% per year. So unlike the other countries, the Americans are able to take out huge loans, at very low interest. But is this going to continue for ever? The largest holder of US bonds is China. And they are planning to offload most of these bonds.

You should always take GDP in consideration when looking at country debt. But of course you also need to look how is debt structured. But there are also other things important. Japan is quite deep in shit. Their population is aging fast.  Sudan have one of youngest population on world.  Also debt dont make economic situation worse, but better. Paying that debt off will make it worse.

USA debt and world debt is rising every day.It looks like there is no limitation
But notice that now we have new kind of money that new money are debt money.Debt is money debt is asset.Debt is slavery tool debt is able to destroy individuals and small and medium companies
However last time we have record gold buy from central banks.Russia sold half of his dollar reserve and bought gold India and China are buying gold as well
Personally i think we are entering in to the end of dollar dominance,what will create tensions,wars and conflicts .

There is very little liquidity within this market, so if there actually is debt flowing into Bitcoin, it will have a massive impact. I however don't think there is much of it flowing into Bitcoin. People hope it is, but that's just how they are.

I do however agree that every form of safe haven capital that is being pumped into Bitcoin will be taken out immediately when investors see the early signs of an improving economy.

This is why I prefer that Bitcoin isn't being used as a safe haven asset by the more traditional investors. People here love it when the price pumps, but as they have proven more than once already, they can't handle large corrections.

The US government debt might help for pumping the bitcoin price,but I don't think the impact is going to be that big.After all,the investors have a lot of options,when it comes to putting their money-real estate,gold,oil,stocks,derivatives,etc.The upcoming recession will scare the shit out of investors and some of them will find a safe heaven in bitcoin,but this is going to be only short term.

Well, I guess it would be cheaper to buy Greenland and then to relocate there, if you do not want to deal with the problems with all the illegal Mexicans that enters the US on a daily basis. No wonder there was a Government shutdown over the Wall he wanted to build between the US and Mexico.    < That wall would have cost up to $25 million per mile and take years to build and it would cost the White House about $5.7 billion to cover only about 230 miles.>   

His government should start to lead by example and implement belt tightening measures to curb government spending on useless projects like that.