Topic: What US can do with its dept? Genuine question. - page 3. (Read 546 times)

The US producing money, accumulating debt, and exporting inflation is significant, right? As the world's reserve currency, the dollar has long been unique to the US. What happens when more nations abandon the dollar? As you noted, exported inflation could return to the US, raising prices and possibly causing a recession. A tricky balance, right? Managing the economic effects of such transformations demands a strong and flexible economic strategy. How will the US and others handle global economic changes? Only time and policy will tell.

There is a huge difference between foreign debt and national debt. What your country (and a lot of others have) is foreign debt which is where they borrow money from elsewhere.
The national debt which is what US is suffering from is where you print more money than you should by practically borrowing money from every single citizen creating inflation. Another way to look at it is the government spending more money than they actually have. This is a simplification but I hope you get the difference.

What's gonna happen depends on how dedollarisation goes. You see unlike other countries and other fiats, when US prints money and creates debt, they export that inflation to others. But as more countries dump more dollars, this inflation goes back to United States.
So a period of very high inflation and shrinking economy and even recession is on the horizon.

Suddenly I started thinking about the issue of war from this question and what is happening in many areas, development or competition, economic war between leading countries to prove their position. Most countries have mutual debt, and they could use stricter fiscal policies, such as strengthening budget controls, improving public debt management and building a fair tax system.  As is clear it is a lengthy process and depends on many factors, including political, economic and society.

This is probably not going to happen soon with the proxy wars they've been fighting.

They continue to send funds to Ukraine as they battle Russia and it seems a lot of that money is coming from China. If that's true then it's funny how they're borrowing from one perceived enemy (China) to fight another (Russia). This could be just a rumor but there are some articles that says Biden approved $8 Billion military aid to Israel after the recent attack from Hamas.

First thing they need to do is start to  cut down on their debt. They are making the hole more difficult to get out of. And since interest rates are high they are paying higher interest on their own debt.

Next thing they need to do is get more tax revenue, and I am not talking about blue collar workers I am talking about all the millionaires and billionaires which barely pay any taxes. There are way too many loopholes and they need to be plugged.

Another is they need to start to develop more. Find maybe another useable energy source instead of relying on foreign oil. Make more products in USA instead of overseas. It'll be tough but they can find ways to reduce it. Or at least temporarily prevent it from rising further.

The US has complete confidence in itself. They show that they don't care if they have debt or not. The main thing is that they still control the situation. And debt is a purely economic quantity that can be easily manipulated (the debt ceiling can be raised indefinitely).

Without a doubt there should be a lot of mechanisms for the US to reduce its debts all around the world, what is interesting is that they are not doing anything and instead the US is just increasing its debt ceiling, by this alone I can conclude that somehow the US debt is useful in some way or form, I am not so sure why this is the case as I am not an expert on the topic, but this makes sense, as otherwise the only other explanation that could explain why this does not happen is that the politicians in control of the US government do not know what they are doing.

I feel like that's becoming the norm and there is really nothing that anyone even wants to do about it. That is why it is not getting taken care of right now, I feel like people are just trying to do whatever they possibly could do and saw that nothing changes so they are basically just letting it be. And that's a normal thing, I am not sure if it will ever get solved, it is just going to grow more and more, one day soon it will be 40 ,then 50, then one day it will be 100. So, we just need to let it be, and not worry about it.

What can we personally even do? Not like there is anything we can do, I mean not about USA debt, I mean our own national debt, all of our nations have some debt, surely not as high as the USA one but still all of our own nations have it, and we need to reconsider what we can do about it as well. I get that it may not be all that simple and such, but we still can't do anything about it and we just have to watch it grow at this point, we all gave up.

This website is what I've seen from someone before: https://www.usdebtclock.org/
It's the US' debt and it keeps on moving nonstoply.

There's no way to resolve it because with that amount of $33T, that's a lot of money and will continue to grow with the interest.

All if not, the majority of the countries have huge debt and there's even this meme that I have seen before about where on Earth these countries are indebted. But most of the countries that have huge debt are having hard time because instead of that money will go into their country's budget for many projects for their people, they have to pay it which is an obligation that will time until it gets paid in full.

There can be ways but it's all just like blah blah blah words from them where in fact that there's no way to solve it unless every rich folks in that country contributes and pay for that government debt which is impossible to happen.

all countries have debt.. the funny thing is if one country cancels the debt of another country, that other country can then equally cancel debt amount to that first country.. and if they all done it to rebalance themselves down. the numbers would be far lower for all

for instance US owes japan $1.1trillion
however japan owes the US $274Billion

so just on that statistic the US could bring debt down to $826bill instead of $1.1trillion

now lets say america has a wiggle room to increase its debt, but to do so to benefit another country
next up US owes belgium $354billion
japan owes belgium $236bill

so if belgium cancels $236bill of US
and japan cancels the $236 debt to belgium, and takes belgiums US debt and adds it to the US debt to japan.. bringing the debt US owes japan back to $1.063trill
belgium can be clear of all debt to japan and the US is still under the $1.1trill ceiling

the US can then do a similar thing in opposite direction with another country to get the US to japanese debt down again
repeat, repeat, repeat
...
but here is the thing, debt is a tool. if US has demands on say the UK, then the UK are beholden to agree to certain trade terms or other sanction details else the debt will become due so the US want other countries having US debt. so i dont see the US doing a debt cancellation program of world economics to bring all countries debts down.. yes its mathematically possible just not politically possible

The past cannot tell us much. The economic situation has changed dramatically since 1971, and the United States was able to place dollars in the world without a monetary cover. The United States’ debt is paid by all countries that bear the cost of this debt. Unless there is a military change or a world war, it will not survive. Any country that can replace the dollar from the throne of the best currency.
The debt of the United States is increasing because they are trying to always be the best and excel in areas such as military science, cybersecurity, energy security, and new technology in addition to patents.
All countries bear the bill for this research, and they cannot do much because they depend on the dollar.

There are probably a hundred available approaches to it. Especially to rich, influential, and powerful countries like the US, there must be a lot of ways to confront it.

For one, just like in individuals and families, government debts could actually mean greater productivity. And I'm sure that whenever the US gives generous aids, for example, there are a team of economic experts that have already computed the benefits that would come out of it.

Moreover, there's the power of the government to impose all kinds of taxes. And then they also have the absolute power over the money printer.

There is a solution but its boring and requires a budget surplus, hard work to repay debt and how will you win an election without giving away tax breaks and other things in the run up the vote.  Its just not going to happen unfortunately, what will occur is loose money and repayment via inflationary loses to the capital value of the debt.  Thats really more damaging because inflation causes harm to the economic prospects of especially small business and business people.
   I have a few dramatic ideas but again would not be popular, its feasible for USA to use only natural gas for its energy.   The main challenge with natural gas is its a much more bulky energy then oil or coal.   If they use natural gas, the oil can be exported creating the value to repay the debt with a surplus trade balance and also revenue just run to service the debt repayment.   Theres enough gas in the ground to provide all USA energy usage for over half a century, excluding anything like hydro and other new forms of power.
  Current oil policy has been to use up the strategic reserves so I think we're going in the wrong direction as far as being rid of the control oil has on an economy and its costs etc.
   

The truth is they can't do anything about it. They can only witness it grow bigger that's it. Trying to stop or reverse the growth will definitely lead to more printer go brrr and eventual collapse.

I mean you pay the old debt, and you keep increasing the new one and you keep it going, that's as simple as that. You borrow money today but you pay it 10 years later, with inflation you hope you did better with that money than you should be paying it back, and by that time you are going to get more debt anyway, so when the time for your debt comes, it has been 10 years since you took it.

Plus most of the "debt" is not really debt, that's just inflation, they are literally printing money every year anyway, so that means they are going to just use that and pay it back and hurt their currency a little bit but because other currencies are doing even worse, they will be fine. Look at the last situation with pandemic, they printed trillions and they still did fine compared to other currencies.

Not just US, as others have said, a lot of countries around the world are in debt. Even super power countries like the US, Japan and China itself. The thing is that their country is also moving, so at least they were able to survived, unlike any other countries that really sink in the hole and can't get up and not sure how they are going to pay for it. Perhaps they will do trade and barter with the countries that they have a loan and that's what most of them are doing. However, it's very difficult on how this situation will be resolved and it might be cyclical. After they paid, then they have to re-loan again and again. Printing money could be any option, but it's not the answer as it will cause inflation pushing their economy down.

My country is in huge dept especially after they took several loans form other countries that includes China, but my country is not a power house in terms of economy and that's difference between them and the US, the US took depts and even though ever country is a bit corrupt the US can be able to manage the loans they took and channel it into something productive and then they should be able to clear their depts before the deadline.

But in most developing countries where corruption thrive borrowed money are mostly mismanaged, embezzled or use to be put into things that aren't productive that why it's harder for an underdeveloped country to clear their depts than a developed country.

They do have a choice usually they will have 2 on their hands. War or print money.  Usually, An empire will pick the printing of money since ancient times but before it happens there will be war in an attempt to grab resources and riches. Roman Empire, Ottoman Empire, and even the Chinese Empire did the same thing, there was always a war before the empire collapsed.

It seems to be the pattern of this world. One nation rises up as a global leader and then collapses after hundreds of years. The US is no different to them.

The question is moot because this is not the first time in their history that they have a debt. Maybe it looks bigger now to you, but they always had a lot compared to the time they had it, when it was just 1 trillion dollars for the first time ever, that was a lot of money for its time, when it peaked at 10 trillion dollars that was the biggest ever of its time, now they have a new one and they are %100 going to increase the ceiling as soon as both parties get what they want, and they are going to just keep going. Whatever they did with the previous "biggest of its time" before this, they will do exactly the same thing. If we were talking about a nation that wasn't like this before and suddenly became a big indebted nation then we could have considered the answer, but its just going to be "whatever it did so far" and nothing more.

In modern economy debt is the gold. Earlier countries used to have gold reserve which used to derive their purchasing power. Now that system has been replaced with debt. So every country in the world have huge amount of that on them and that's how the money circulation happens.

There is literally no solution until we go back to the gold reserve again. That is how the money is printed.