How is America gonna fix its ever growing national debt?

How is America gonna fix its ever growing national debt?

If you don't act quickly inflation is gonna hit you harder than Zimbabwe and a can of soda is gonna cost $8

Other urls found in this thread:

bloomberg.com/news/articles/2016-03-14/there-s-only-one-buyer-keeping-the-s-p-500-s-bull-market-alive
money.cnn.com/2016/12/22/news/economy/us-inequality-worse/
usdebtclock.org/
twitter.com/NSFWRedditVideo

It's all part of the plan goyim

Destruction of America will usher in the one world government

Little had OP known I am the hacker known as Sup Forums, and I have taken control of his web camera and snapped a photo of him.

who do they owe it to?

>can of soda is gonna cost $8
That what a beer costs in Sweden

and im not even joking

It won't in its current state. The US will collapse and eventually recover from the economic failures caused by the stupid demographic.

The debt causes deflation.

Themselves

Wait a minute, I thought that the deficit in the US went DOWN during the Clinton years. That chart can't be accurate.

There was a very brief period of surplus but the debt kept on growing because they fudge the numbers with the deficit to make it look smaller.

They default
People chimpout
Things go back to normal

>america collapses
>millions die
>only the white gun-owners survive
>ancapland created
>superpower by 2020

the deficit went down, not the total debt. the deficit is how much money per year they are in the red. He shrunk the deficit but we still had lots of debt

Thats handy then, so debt is just a meme?

OK, i'm taking out a £300k loan and not going to pay it back

Next Time the banks want a bailout they can fuck off.

bail out the debtors, not the creditors.

The only solution is to remove the right to private banks. You can only buy money with money, and how are you going to pay for it if you don't have money? Interest. How will you pay that off? Buying more money, of course, which then leads to more interest.
That is the only solution.

When the great reset happens, everything will be replaced by automation and government social services.

>The debt causes deflation.
how
shouldn't be the contrary

My older bro's solution was to sell all of our government property like NASA and shit.
Is this a good idea?

It is not about how much debt you have but how much it costs compared to what you can pay back. Also, the deflation is mostly a consequence of the low economic activity or recession than other issues.

Japan has low inflation due to the stagnant economy and their debt did not burst due to their population having mountains of savings. On the other hand, here in Brazil we just suffered a major crisis mostly due to debt issues and our overall debt level is low, the issue is few have any savings at all so even that was above the sustainable threshold.

Printing money is debt. The more people, the more money needed. If you look at the national debt chart with population size, they grow pretty much together. Debt will never be wiped until we either give all printed money back to the fed. reserve or go back to the gold standard, then we will have a different kind of debt. Since we have nothing to back our dollar, it is all debt.

you're a lot smarter than me on all this.

All i know is i want to live in my capital, but dont have the coin becuase overseas pension funds have bought it all up, apparently.

Is that a ponzi? or a bubble?

Its a joke anyways and I hope it turns to shit, fuck paying 3k a month rent for a 2 bed flat.

Good thing I bought a soda stream 6 years ago.

US debt is irrelevant so long as the petrodollar system creates artificial demand for the dollar and petrodollar recycling buys up US debt.

This is why we will support the Saudis to the very end.

>Just write it off

it'll be paid by a late-night excise tax.

>debt
>deficit

...ahem....

>under clinton

under gingrich.

The chart seems to show that. There's a brief period where the debt stalls, but a surplus doesn't negate the debt particularly when it's this large.

But the fact still stands if the U.S was unable to service its debt and can't pay back its creditors it would lead to catastrophic global events

10/10

The U.S Federal Reserve isn't owned by the U.S though. it's a private entity. That's why there is debt. They give out money, and we owe it to them. We all do, anyone in the U.S or anyone handling dollars owe it back to them.

...

Bush said the taxpayers deserved to get their surplus refunded.

Most of their money is on the form of military equipment, and weapons lever lose their value, guns are power. If you spend more than every other conutry on the earth combined on you military budget, then those money are not wasted they are only locked in the military hardware, and remember that guns are worth more than money, a guy with a gun can rob a guy with money.

Exactly. Boomer genocide, when?

They give the banks special notes(does not know what its called in English, am not native speaker), and they loan these bonds to the banks for interest, and since it was them who created the money how can you pay interest?

The same thing with Euro, is also debt based currence which EU get to pay for. I am just glad that in my country whe still use gold stanard. (Something Nixon abolished I think in the 70? )

In theory a sovereign country not being able to service debt in its own currency cannot happen. Defaults are usually on debt denominated in foreign currency. The US has debt issued in dollars, worst case they just need to print more money.

The exception being debt tied to inflation ratings because printing money creates lots of inflation.

Of course in practical terms things are a bit different because some politicians could just decide not to pay it for whatever reason and then done. This is why debt ceiling debates are worrisome.

We should just default on all T-Bills held by China. Tell them to fuck off.

wanna head down the road with me?

There was an overall budget surplus, but supposedly it only existed because Clinton borrowed from social security and never paid it back. I've never really bothered to check because its a drop in the bucket now.

You borrow $1 million, the bank owns you; borrow $23 trillion, you own the Chinks. Best national defense

American has already collapsed, think ancient rome before the germanic invasions. Pax Americana ended when Russia annexed Crimea and sent ground tropps to Syria.

Sorry US fags, if Trump cant make good deals with RUS/tradeparners, then the east will be the new superpower, not us west.

If it was not for the world wars EU would have been a bigger super power than bout US and Russia + china.

pretty sure that would piss off more than just china. it would destroy the world economy

....and you own the jews.

we are fucked

Chinese/European banks
They owe China/Chinese banks around 3 trillion

Pensionfunds within the US, which means they kinda borrowed it from themselves, but when people get old they have the right to get their pension.

Obligations/bonds to the public other instances

All americans surplus have to do with the petrodollar, if you dony believe me then google it. Otherwose you are broke and in huge debt, both to countries and jews, sorry to say bro but American hegemony is over bro, if Trump does not fix it.

The Federal Reserve only owns 2 trillion of the national debt
The rest is by Americans and foreign nations

But they do lose value over time as maintenance requirements grow higher and spare parts more scarce. Besides, technology does not stand still, the relative combat capability decreases over time as the technology advances, which then requires retrofitting and upgrades until a limit when a new weapon generation is necessary.

But since you have invested all your money in military hardware you are still an incredable force to be recon with(even without nukes), huge industry, modernised and automated industri wich can outproduce all conutries(Military industry complex)

All of our money is debt

If we pay off the debt we no longer have any money

Let's go trump feminism is absolute garbage

If you don't pay your debt. You loose your credibility, which means noone will ever loan you money or invest in the country.

The only way to do so then is to write bonds with at least 10% interest rate.

Countries like NL, Germany and Belgium can write very low interest rate bonds, because everyone knows they will pay it back, whatever happens

Yes I understand your points, but think of it this way. 2015 model new generation tanks, with 10 hangar boats(which are modern) and a ridiculous big air army and fleet, with minimum of one millions volounters at callen time without drafting is a real fucking force to reckon with, even after 30 years, look at north korea, they have shit from 60-70 but US still have not gone in and unification the country under capitalism.

Guns/weapons/cannabons/tanks/boats have long life time.

Old Hickory killed the bank and balanced the budget. That was the only time the US budget was balanced.

Wasn't America's credit rating reduced a few years back?

The only way to get away (sort of) with it is to have a surplus so you don't need the new loans.

The problem is that at the very least it will cause a domino effect of loans going bad due to those who were expecting to collect the interest. Things are so inter connected that a liquidity crisis can be devastating.

And there is the issue concerning how the rest of the world will react.

>debt
Who is gonna come to collect it and how?

Government spending is pretty much the same relative to total economic activity. The only reason debt has spiraled out of control is that the wealthy aren't getting taxed 90% anymore.

As such, the wealthy are making all the money, but not spending much of it and the government is doing all the spending. Only difference between now and in the past is that the wealthy are making money and sticking it in offshore accounts rather than it just being taxed plain and simple. Inflation won't be particularly different at all.

It is for all intents and purposes owned by the US. The "shareholders" of the Fed get some compensation for being legally forced to park their money there. It was about $2 billion in 2016. Meanwhile the Fed's actual profits, $92 billion in 2016, go straight to the Treasury and the US taxpayer.

Right after $24 billion dollar Cruz shut down the government for a month.

Literally, $24 billion so we could listen to him read Green Eggs and Ham.

But, now that Republicans are in control, I hear they tell us that fillibustering is bad, mmm'kay?

No, the debt is created when they
create T-bills out of thin air for auction. The money we all have was used to buy those t-bills. We don't owe the money to the fed. The fed owes the money to the people who buy those treasuries

Yeah, but it was purely political, not because there was any risk of us defaulting

Government spending is what's making primarily making the debt grow
Its only gonna get worse once the Boomers all start retiring and demanding social security from the Millennials who are already in student debt

Student debt doesn't impact social security at all

1) The Fed doesn't create t-bills, the Treasury does. The Treasury is the entity who owes money. The Fed holds a large portion of Treasury debt.

2) The Treasury "creating t-bills out of thin air" is the same as any other entity like GM "creating bonds out of thin air" when they borrow money from debt markets.

Workers pay part of their earnings for social security just like with a Federal student debt

There was pretty serious risk of default from Republicans threatening to do it over and over again. The US' credit rating has returned to AAA.

>(linear scale)

Clinton had nothing to do with it, thank the Republican majority and Gingrich

There's no fix to it. Money printing and lies are all they know. There's no plan B.

THERE'S NO PLAN B.

When the babyboom happend after WW2, many countries expericende "record years", and that's why in our western contries(sorry bro you are polish and also part om my immedete europe). anyways, after the babyboom after ww2, the babbyboombers did not give birth to the right samount of children, they where breedomg to few, that's why people take in immigrants, so the population increases = more profit.

Only reason they were able to drag things out this far since 2008 was 0% interest. But rates are now moving up again and the Fed has to follow as reluctantly as they can.

I'm not sure when things blow up at what rate point, but if rates go too high, the system will come apart, it's way too overleveraged.

It's happening, but use a real fucking neato chart next time, leaf.
It doesn't help being serious about a real problem by using a comically hyperbolic leaf shitpost chart like OP.

US Federal Debt as percentage of GDP

As long as we keep flushing money down the military toilet, the budget is fucked.

A lot of bonds and international debt

This. Companies have been using that cheap debt to buy back their own stocks, keeping the market artificially high. It's a house of cards.
bloomberg.com/news/articles/2016-03-14/there-s-only-one-buyer-keeping-the-s-p-500-s-bull-market-alive

If I get it right, what's happening is that the monetary base of the american economy has been enlarged around 3x since 2008 in order to prevent a liquidity crunch such as that one that happened in 1929. That would be normally a sin for orthodox economists since that should be creating a mad inflation spiral, but that's not happening. I think no economist is quite sure of what's coming in the next decades.

fucking obama

>glub glub glub fug :DDD

It did create inflation, that is why even during the crisis there was no deflation.

It also depends on what is happening with the money, inflation would be a direct consequence of increased consumption. This did not happen, what is happening is money hoarding by large holders, stock buyback is a sign of this. This is why the income gap has been jumping higher and higher, sample:

money.cnn.com/2016/12/22/news/economy/us-inequality-worse/

>How is America gonna fix its ever growing national debt?

Fix?

There is no "fix". We've never had a situation this large before. Sorry to tell you but we're riding this sinkin ship all the way down to the bottom. Whither you like it or not.

There is a silver lining, credit card debt is decreasing as we speak, see:

usdebtclock.org/

Also, you have more assets than unfunded liabilities.

>bloomberg.com/news/articles/2016-03-14/there-s-only-one-buyer-keeping-the-s-p-500-s-bull-market-alive

you fucking faggot why did you make me read this shit.

The debt to GDP ratio of most of the world is like that or worse, yet the dollar keeps gaining strength,


Country Debt as Percent of GDP (2010 est.)
Japan 225.9
St. Kitts and Nevis 196.3
Lebanon 139.0
Jamaica 135.7
Greece 130.2
Eritrea 129.7
Grenada 119.1
Italy 118.4
Iceland 115.6
Barbados 111.6

As of 2015 the US is upto 104%

A) Who would buy it
B) That isn't enough to bail out the debt and only just makes the government weaker

>It did create inflation, that is why even during the crisis there was no deflation.
If that increase had happened in "normal" times, the inflation would be exploding. The whole inflation generated by the expansion of the american monetary base was very timid, only a bare mininum to lift the country above deflation. It's like we're living in a relativistic economic limbo where the law of economics that would normally apply do not.

>It also depends on what is happening with the money, inflation would be a direct consequence of increased consumption. This did not happen, what is happening is money hoarding by large holders, stock buyback is a sign of this. This is why the income gap has been jumping higher and higher, sample:

You're absolutely right, but it's hard to foresse where we're heading to. Everytime I read about current economics I get more appalled.

then trumps wall gotta pause

Oh, how I wish I had a crystal ball...

Praise

How can one man be so based

It was slowing down till 2000

FUCKING BUSH REEEEE

nine eleven