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Wealth & Economics > $21 Trillion and Rising - Does anyone care?

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message 1: by Graeme (last edited Mar 16, 2018 07:57PM) (new)

Graeme Rodaughan The US debt has breached the $21 Trillion mark as per

https://treasurydirect.gov/NP/debt/cu...
and
http://www.usdebtclock.org/

And does anyone care?

As an Aussie, I'm not directly in the firing line on this particular debt pile, but if we examine other locations in the world, it seems that everyone is in debt up to to their eyeballs and clamoring for more.

As a society (I'm talking broadly of the modern world interconnected through arcane webs of finance) can we continue to eat the future in the expectation that somehow a mathematical miracle is going to occur and there will be no significant outcomes in our lifetimes that we will all have to bear - regardless of where we live.

What do y'all think?

Is it a nothing burger? Just "1s" and "0s" on a bunch of disk drives? Or are we in real trouble and just digging ourselves deeper into a hole every day?

If it is a real problem, why are both major political parties in the US committed to increased debt spending (i.e. neither Republicans or Democrats have real policies to spend less than the tax take, and pay down the debt.)

(Note: it's no different in Australia where the current crop of local politicians have never seen a debt they didn't like.)


message 2: by Philip (new)

Philip (phenweb) | 0 comments In the UK we still have austerity and talk of reducing current account deficit with a longer term aim of reducing debt. Trouble is life gets in the way. Cutting spending just increases need to spend further down the line. After a worse winter than normal in the UK we have more road maintenance to do because road maintenance was not kept up to speed to reduce running costs.
The cut in UK currency following Brexit vote improved trade deficit but it still is huge.
The answer post crisis of 2008 was quantative easing i.e. print money or in reality magic money into existence to give to banks
Spending more than you earn is never a recipe for success but governments all over the world are busy doing just that.

UK stats

https://www.economicshelp.org/blog/33...


message 3: by Nik (new)

Nik Krasno | 14878 comments But look at those tremendous credit ratings:
https://en.wikipedia.org/wiki/List_of...
Australia - triple A, US - AA+, so everything's terrific!
The history shows that every once in a while countries, like people and corporations, enter into a default or near default positions. Now, what do you do if the strongest guy on the block owes you money? Sometimes, nothing. I wouldn't worry about the US, that much. They can always print some more or convince the creditors to be nice. Servicing the debt with more debt. Didn't French attempt to trade green papers for gold some decades back and returned empty-handed? After all, they can re-sell Alaska for the highest non-USD bidder -:)
We live in an unhealthy world, prompting everyone to spend more than they have and then breath heavily or choke


message 4: by Ian (new)

Ian Miller | 10664 comments I think it depends on what the debt was incurred for. Also, it makes no sense that everyone is in debt; if they were all in debt to the same amount they could cancel it and everyone would proceed the same. I think the answer is it is governments that are in debt, and it is the people who hold it, so when they cancel the debt, it is the people who carry the consequences.

Also, at the risk of going off beam, I have heard, (don't now how true it is) Russia does not have such debt.


message 5: by Scott (new)

Scott | 42 comments Graeme wrote: "The US debt has breached the $21 Trillion mark as per

https://treasurydirect.gov/NP/debt/cu...
and
http://www.usdebtclock.org/

And does anyone care?

As an Aussie, I'm not directly in the firin..."


Apparently not. Not unless it was spent on, you know, things that actually benefit us Americans...like infrastructure and helping the poor and education and...

Instead we spend it on the military, which is like a huge giveaway to big business and wealthy people, in my opinion. And on walls. Let's not forget walls.


message 6: by Nik (new)

Nik Krasno | 14878 comments Scott wrote: "And on walls. Let's not forget walls...."

-:)


message 7: by Ian (new)

Ian Miller | 10664 comments The good (or bad) news about walls is that Trump has decided a wall is a defensive measure, so can come out of the military budget. Now all he needs to do is take notice East Germany who were strong on walls, and include a few minefields to get at those wretched tunnelers. :-(


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