Topic: What US can do with its dept? Genuine question. - page 2. (Read 466 times)

If they are rich, why will they need to have a debt? Add in the tax and the money printer but they can't just print more money as that doesn't solve the issue, rather it can only worsen it. There are still rich people who has a debt, and they use the money to improve their business. Maybe the same approach the US are doing. Debts has a different effect to the people who has it.

Maybe it's true that they can be productive or more motivated when they see that their business is improving because of it and they also need to be productive to earn more money to be able to pay it. For others, it can cause a laziness especially if they use the money in things which are not beneficial.

There are possible hypotheses that the debt will cause major problems for the American economy if international entities succeed in replacing the dollar with other currencies, that is, reducing its use. This will reduce the burden on those countries if America thinks about exporting its crises abroad.
The American system will never collapse because of debt because this would require the collapse of the entire global system. America knows this since it decided to violate the Brettonwood Agreement and began printing dollars without a gold backing.

I am sure that US will find a way to “zero out” this national debt. Probably no other “people” has such huge historical experience with public debt as the US. Economists offer “economic” ways to solve this problem, while the government US will find (or has already found and is waiting for the right moment to implement / is already implementing) an alternative. Don’t worry about them, they will easily get out of this situation, but the whole world will “disentangle” the consequences, as it was before.

This is exactly why dedollarisation is mandatory for every nation around the world, that is if they want to survive the upcoming economic crash. The more they decouple themselves from the US economy and the US dollar the less affected they will be.

BTW they tried the solution #3 by cutting the cost from certain sectors like the healthcare, etc. but they increased the military budget and the military spending for overseas wars that not only negated that but also increased the US national debt by over a trillion dollar,... so far....

Most of the country today is all in debt. Now that I know the US, whose debt is too big, there is no back-up of their dollar or currency, unlike other countries that are backed by gold and others that are backed by oil.

If this US can do it, it will be really deep in debt because it is debt after debt, and then they are not doing anything to reduce their debt. Then it seems that the style of the US will lend a large amount of money to a country, and then when they know they can control the country, they will attack it just to get rid of their debt, but this is just what I thought, and I'm not sure if this is the style of the US.

This dept thing is something every nations is experiencing but how they go about it matters alots..probably they might be taking it lightly and going about their daily businesses.

This matter can be resolved if they stop being in Dept's.

The country have resources or means of recovering the money  and pay up their debts but I guess they are reluctant and watching what next will happen.its advice every developed country find a good means of paying off their debts rather than pushing it further for upcoming leaders to deal with.

Iirc, most of their debts are from the Federal Reserve or like their own bank so I don't think that it's really a big deal for them to pay it back anytime soon, they can just accumulate as much debt as they can because it's not like it's coming from other countries. I might be wrong though so I welcome any correction to what I'm saying. If I am wrong about the debt and it's a debt to other countries, US can just use their influence to pay those country not with the money but with favors, I mean a country that have US on their side is a big help especially in terms of military and foreign policy.

It’s like every country is in debt and thus progression of GDP is always high for United States. Even if there is debt they still have decent amount of money to run the country, develop infrastructures, pay the pensions, run entire military operations and what not. So what is the problem here? Ideally there is none because they are seeding more money than the debt but entire focus is on the development of nation.

What they can do is, increase the fed interest rate, put more burden on the supply chain and in house developments of various products and services. I am not sure how far they will keep the debts but they do have capacity to nil it sooner but they aren’t doing it. (secrete alarms) 

1.Solution number 1: The Federal Reserve keeps printing more dollars, which leads to devaluing the US dollar, which devalues the US debt.
2.Solution number 2: The USA defaults and stops paying the debt. All the creditors lose money. The financial markets crash. The economy crashes and we will be witnessing another Great Depression for 10 years or more.
I think that the US central bankers and politicians will choose solution number 1.
There's also solution number 3:The US government cuts 2 trillion dollars government costs and raises taxes in order to achieve a balanced federal budget and get rid of the budget deficit. This is close to impossible.

I think the US foreign affairs, should start with cost containment on decisions to fund "external" wars or to deploy US troops in foreign nations. Their primary concern should be to focus all funding on the war on debt. 

They should also hire independent private companies to audit all government tenders, because the prices for these tenders are inflated and US tax payers are paying a premium for goods and services that are rendered to the government.

They should also reduce non essential projects that are not necessary for the effective rendering of government services.   

The situation will be resolved based on an agreement from both parties before borrowing money is made or carried out by countries that need money from the US. So it seems like it would be a waste of time if we thought about that, because economists also have strategies that they will carry out through anything, including through borrowing money. This will be resolved in accordance with the initial agreement of each borrowing country because the US also has a mission to lend money to countries that need it.

And what the US has not yet acknowledged is that it creates conflicts in other countries. Their war funding started on its own by using other parties, creating massively funded armed groups, and then the US came in with a new face as if they were going to be the heroes. Instead of reducing the conflict, the US actually offered assistance in the form of weapons which were no less free. Like it or not, debt becomes a solution that must be paid after all conflicts are resolved. A conspiracy that has become public knowledge. But other countries can't do anything because the situation demands them to follow US rules.

The debt is ballooning but the US can print more dollars. They say this is all for the stability of the superpowers, so don't be surprised that every country that has exploited its debt to the US will become a chain of chains.

It sounds easy but I think there are thousands of problems to solve. The government has hundreds of thousands of economists on hand but they still don't have any effective solutions, while we don't even know how their economy is working. So for us to come up with ideas to fix this, to me that makes no sense.

In my opinion, things will continue like this, debt will continue to increase every year and at some point it will become too overwhelming and will explode. And everything will be reshaped from scratch as a new world. It could be a pandemic, a third world war or any other major black swan that will reshape the world again and a new world order will be established from there.

It's just like a stuck thing that will last forever and as we say if death and taxes are permanent, there's another one. It's either the US' debt or any other country's debt that has been there forever and has a hard time paying it. And that's like the sad reality that everyone needs to take, that no matter what they do, no how hard we work on it and contribute to it, it's almost not moving and even adding more due to the interest. While some countries have the lowest debt, maybe these countries that have a high national debt can learn from them. But no, I don't think that will happen since most of these global leaders think that there's no other one that's better than their management.

Obviously it is easier to say it than doing it.
I just feel that some branches of the government in USA and over funded, while keeping others underfunded or not using the chance to do some non-essential cuts to face the deficit they have.

With the increase of immigration, I would only expect the federal and local governments to further suffer by stretching their budget, to take care of such humanitarian crisis. It is problem after problem which does not seem to be a solution for, without hurting thousands of people.

It's easier said that done though, not just US but any country that is in dire financial problems will have to borrow money somewhere else otherwise they won't survived specially coming from the worst pandemic we have seen in centuries.


Of course they will have a lot of programs, they are even bailing banks right now just to have their banking system stay afloat. Taxes too will be one great program but the people are not going to like it as they likely to suffer as well with the economy on the brink of disaster.

Abandoning dollar is the definition of the New World Order. Each time the World Order changes, there will be a lot of "chaos" in the world. In other words it is expected in all aspects including economy, energy, food, security, etc. Many countries were already prepared for it, some got prepared for it over the past year and a handful will continue to remain unprepared.

How will they handle this significant global change?
How each country will handle it depends on the countries considering their preparedness, their people, their strengths and weaknesses, their infrastructure, most important of all their resources and their relations (which side they stand with).
For example both Pakistan and Germany have been facing an energy crisis over the past 1.5 years but the effects and how they handle things are vastly different!
India is another vastly different situation as they are transitioning into China's role as a massive "production factory" and has been setting record high economic growths despite being an energy importer too.
Iran is another example but as an energy exporter that despite being in the midst of the longest and largest cold war in history, has the most battle hardened economy and despite all this has been setting record high economic growths from 5% last year to the 7.9% from the first quarter of this year (that is Spring).

As for US itself, they too have plans to prevent hyper super-ultra inflation inside United States as the world dumps the dollar. I haven't done extensive research to fully explain it, just read some articles here and there. For example one way is the laws they have that would practically "block" the dollars from coming back to US mainland! Basically turning any dollar outside of US soil into garbage to keep the "domestic supply" low.

The most Orthodox solution is the most obvious. The United States needs to close gap of their deficit, to get onto green numbers and stop borrowing out of control.

In order to do it, they need to either increase their income or decrease their spending. I am more in favor of increasing their income rather than cutting off social programs which thousands of people depend on.

It is about increasing production and making sure all citizens are paying their fair share.
It would also help to cut on overfunded branches, like the military

There's an article about what the US could do about its debt on Investopedia, I think it's pretty interesting. Aside from setting high taxes, it discusses various over ideas, such as opening borders ('cause immigrants start businesses at twice the rate of US citizens + it would create new demand for various goods, thus stimulating their production) and raising the age of retirement (to cut the spending and to ensure people pay for their social security longer). But most ideas revolve around changing something with taxation.

Like what we are going through, crisis, war, inflation... and the US government is exporting inflation to the world. They are in the position of the world's largest creditor, not a debtor like many other countries. The US government debt rises to record highs every year, but that is only in theory and in reality they are the owners of the world's money printing machine, the Fed and the USD. So to say they will default, that's really unlikely. Unless the USD weakens and is replaced by another currency, the US economy will risk collapsing.