The United States is $222 trillion in debt

They can't accept failure as part of the Trump MAGA plan.

 

No since this is God's planet and all the wealth extracted is a gift we are commanded to share the blessing.

 

perception is key... as long as wages go up to match, doesn't mater the price of bread as the cost of labor goes up too

 

what happened to the tea party? lol

 

I vaguely remember mean wages going up a couple hundred K like the price of housing in the past 20 years.

 

Ok, you give 39% and do your part

 

yep, it's time to raise the min wage, the min wage has not kept up with inflation.. agree

we need to tie the min wage to Congresses cost of living increases - bet it would never fall behind again

 

Inflation is kept up with by accruing debt, as all currency enters the system is the form of debt

 

When I get

When I get that much I'll be like Trump and keep it.

 

You have to get all the other nations to agree to that first. And I don't see that happening.

 

You address the plank in your eye, then we can address the mote you perceive in the eyes of Democrats.

 

OK, you refuse to address my points and questions, cant say I'm surprised. I asked you first, you answer, I will do likewise.

 

yes, and wages should keep up with inflation or the system fails

 

From your source:

This is like the most retarded things I’ve read in a while.
They take expenditures, deduct tax revenue and apply some interest to it to arrive to present value of perpetuity (which means indefinite forever).
No consideration is given to inflation. No consideration to the fact that deficits and proficits are never stable in long term.

Here is a good analogy to illustrate he fault of this thinking - let’s say you are earning $20,000 per year and this year you spent $21,000, which means your deficit is $1,000 and you have that balance on your credit card. Now, we apply that thinking employed by that “economist” and apply this $1,000 perpetuity to 10% interest and now we have $1,000 / 10% = $10,000.
Now, do you owe $10,000? Absolutely not, you owe $1,000. The other $9,000 was pulled out of that smart Boston university professors anal opening in an attempt to make a smart comment.

If that person is a real economist in that university than he should be fired.

 

Would people want a significantly devalued U.S. dollar? Probably not. That says nothing about the nation's ability to pay its obligations.

 

It doesn't really matter if the U.S. dollar is heavily used in trade. In order to lend in U.S. denominated currency, one needs to sell their currency and purchase U.S. dollars. As long as people are willing to exchange their currency for U.S. dollars, the U.S. dollar will be considered valuable. However, the value of the U.S. dollar says nothing about the U.S. government's ability to not repay its debt.

 

Ahh, read the fine print of that graph. That's the deficit as a percentage of the GDP.

 

There isn't really theoretical about it. We pay our existing obligations by simply borrowing more money. The United States can default if people choose not to lend, but U.S. denominated debt is considered the closes thing to the "risk-free rate." Aside from that, the only thing that can bankrupt the U.S. is the U.S. deciding not to repay.

Hyperinflation is a separate issue.

 

The Debt Venezuela defaulted on was EXTERNAL; meaning it was debt denominated in a different currency which it does not directly control (U.S. Dollars) .

Which only proves my point: a nation with control of its own currency (that borrows in its own currency) can never have a debt crisis. Greece, Spain, and many other nations that borrows from the IMF can suffer a debt crisis.

Nations similar to the United States are different. They issue their own debt and issue reserve notes in similarly denominated currency. Therefore, nations in control of their own currency can never suffer a debt crisis.

 

If the United States issues its own debt (which it does), it an always issue currency (another thing it also does) to monetize it. The value of the currency is irrelevant to whether the United States can fail to repay its financial obligations.

 

Democratic hopeful Yang wants to give every "resident" of the U.S. over the age of 18 a thousand dollars a month. That's about 300,000,000 million people receiving $1,000 every month will only increase the U.S. budget by $3.6 trillion every year. An 81% increase in spending is nothing. Who cares if today we pay $2.50 for a gallon of gasoline and tomorrow it cost us $4.52.

 

The issues with a UBI will most likely be related to cost-push inflation; not necessarily due to hundreds of millions of people spending more.

 

Just because the printing press can print money to pay its financial obligations does not mean it cannot go broke. If the value of our currency drops to zero - that currency can no linger buy things. Of course we can default on our debt - which is essentially what you are talking about - that happens as a matter of course on the way to broke.

 

Assuming all things held equal, yes, that is literally what it means.

You're conflating financial instruments with consumer goods, which is wrong. All financial instruments are are monetary contracts between two or more parties. Then the government issues debt, it holds a bond auction. The government outlines how much it wants to borrow and the borrowers outlines the lowest yields they're willing to accept.

If the government wants to borrow $10 million for 5 years at 2.67%, then that is how much it has to repay (plus interest). Regardless of how much (or how little) inflation occurs, that doesn't change the fact that the government still has to repay $10 million, plus interest. The value of that debt instrument doesn't change. The only thing the government needs to do is come up with $10 million to repay 5 years later (plus interest). The value of that $10 million is irrelevant.

In fact, as a borrower, higher inflation is probably what the government would prefer because it reduces the real cost of borrowing. Regardless, the value of the currency (nor the amount of inflation) doesn't constrain its ability to repay financial obligations because inflation is a different variable entirely.

 

Raising minimum wage won't make the mean keep up