Obama thinks the National Debt isn't a Problem

Reminder that the Communist Kenyan born big Big Lipped Nigger Muslim Alien Coconut Headed Freak thinks this isn't a problem

youtube.com/watch?v=M7MUExjeLj8

He's right, it's not a problem at the moment. it's not even necessary to pay down the debt, just outgrow it.

But it isn't, at least not with the way it works now. Allan Greenspan said something along the lines of
>the United States can pay any debt is has because we can always print money to do that.
And he is right. Debt is not a problem, at least not as long as other nations require USD to purchase oil.

ARE YOU FUCKING KIDDING ME? The last time the debt went down was 1957! Name one country other than Libya that fully paid down their debt.

That's such bullshit, if we could print our debts away why can't we? Either we aren't allowed, we can't due to hyper inflation, or our FED is being a lazy ass.

Yes, inflation is the answer. USD are required to purchase oil, so all cointries around the world has to stockpile it, and that is where the inflation from printing USD to pay off the debts goes... to other countries. The inflation does not stay in the US so they don't have to deal with it.

>Yes, inflation is the answer. USD are required to purchase oil, so all cointries around the world has to stockpile it, and that is where the inflation from printing USD to pay off the debts goes... to other countries. The inflation does not stay in the US so they don't have to deal with it.
K so if inflation won't happen due to this USD thing why not start printing off the debt before it rockets to 100 TRILLION. At this rate it will get there fast.

...

>defending a nigger aka FREAK
CANT MAKE THIS SHIT UP

Because the debt is most likely in US bonds and they pay interest, so if you don't collect the debt, it will rise and you will get even more money when you eventually do collect.

Based Leaf

The U.S bonds go to pay debt-holders not the U.S federal government. It's bad for the tax payer.

Thanks based Ameribro.

Rising debt is a problem. The debt itself is a trust. Mostly between individual American citizens and their own country (only a small portion of debt is owned by foreign interests). A trust in the stability of the US bond when all other things are unstable. It strengthens the American economy, makes America accountable to its shareholders and makes the shareholders invested in America.

There is a dangerous mentality in the current debt philosophy that basically goes "we always borrow more than we pay, but we always pay what we borrow back with interest and this is because our GDP, and thus our tax income always grows." That's pretty much how the economists world goes round, but over-reliance on that philosophy causes catastrophes when no catastrophes need to exist and tempt the government to print more money (and thus inflate the USD) in order to maintain the growth.

> Mostly between individual American citizens and their own country (only a small portion of debt is owned by foreign interests). A trust in the stability of the US bond when all other things are unstable. It strengthens the American economy, makes America accountable to its shareholders and makes the shareholders invested in America.
No because then Americans who don't hold debt will have to pay the debt holders back.

>There is a dangerous mentality in the current debt philosophy that basically goes "we always borrow more than we pay, but we always pay what we borrow back with interest and this is because our GDP, and thus our tax income always grows." That's pretty much how the economists world goes round, but over-reliance on that philosophy causes catastrophes when no catastrophes need to exist and tempt the government to print more money (and thus inflate the USD) in order to maintain the growth.
Government doesn't print money.

Also this is only presuming that the system doesnt collapse before we can collect. Which at this rate is likely.

>No because then Americans who don't hold debt will have to pay the debt holders back.
By the same logic the people buying bonds are paying for the people who do not. Clearly you do not understand the concept of investment. The fundamental idea is that money now is more valuable than money in 10 years to a growing organization. Because it's true.

>Government doesn't print money.
Literally what? A FUCKING LEAF.

if you reduce debt, it wins

>By the same logic the people buying bonds are paying for the people who do not. Clearly you do not understand the concept of investment. The fundamental idea is that money now is more valuable than money in 10 years to a growing organization. Because it's true.
When you buy a treasury bond you expect to get the money back + 0.17% interest. So inflation makes it WORSE to invest in the economy because when you get your cash back plus almost no interest it's worthless.

>Literally what? A FUCKING LEAF.
It doesn't print money, when it needs money it borrows it. Banks print money via QE.

>>Government doesn't print money.
>Literally what? A FUCKING LEAF
are you equating government with banks? the us oligarchy thing wasn't a meme i guess

Id say our debt is out strongest weapon. We buy so much so often from other countries that, if we were to just stop, countries would crumble. Theyd loose so much revenue if the US or who ever qe are in dept to decide we cant buy anymore

fuckin frog beat me to it

That would fuck things up tho.

>There is a dangerous mentality in the current debt philosophy that basically goes "we always borrow more than we pay, but we always pay what we borrow back with interest
It's not a mentality (if I understand you correctly), it's how it works. When you go to the bank and take a loan you will have to pay back the principal plus interest, but when the banks ask for that money to lend out, they only print the principal. The interest does not exist on the market, so for people to pay off their debts they will always have to take new loans.

EXACTLY! That's how fucked the system is.

>Americans who dont hold debt have to pay

True if we end up having to default, likely

>Government doesnt print money

A factually true statement but the world we live in cares little for facts. The US government disseminates currency and set rates of exchange. They then license out the right to print money to banks as intermediaries

As far as Im aware

>national debt is a problem

You have to go back.

>True if we end up having to default, likely
What do you mean? Everytime a treasury bond matures the gov has to pay that back plus interest from OUR tax money.

>A factually true statement but the world we live in cares little for facts. The US government disseminates currency and set rates of exchange. They then license out the right to print money to banks as intermediaries
Why doesn't the Federal Government print money themselves instead of getting banks to do it? That way we won't have to be in debt.

The only explanation I see is either our Kenyan nigger President is retarded or a shill.

Are you for real? Reddit is a bunch of liberal Bernie idiots who think the National Debt doesn't matter if the gov will give em free college.

Well if we never have to default we can simply keep borrowing until government revenue so significantly exceeds the debt that payment is trivial. Thats not sustainable at the current rate but not an unfeasible model, theoretically. Investing in your society till your society far outstrips its debts.

>Our president
explain yourself leaf
but otherwise yes, its both

>Well if we never have to default we can simply keep borrowing until government revenue so significantly exceeds the debt that payment is trivial. Thats not sustainable at the current rate but not an unfeasible model, theoretically. Investing in your society till your society far outstrips its debts.
Why not just not borrow at all and issue your own currency like what Gaddafi did? Why have the banks be the middle man printing money?

>inb4 inflation
Banks printing and loaning money to the Federal Government causes inflation just as much as if the Federal government did it directly

>explain yourself
Sorry its subconscience. I always think of Canada as an extension of America so when someone says "I hate American pigs" I feel they are talking about me.

CARL THE KEK STRIKES AGAIN!!!!!!

But he is right...

How am I a cuck?

>A nigger is right
DUDE

there is literally no reason to have zero national debt

the ideal level varies by country and economic conditions

some level of borrowing is good for the economy

if you dont understand this you really shouldn't even be discussing this issue becuase you lack prerequisite knowledge

MUZLIMB NIGGER

MUZLIMB NIGGER

KICK. OUT. THE MUZLIMB NIGGER

Ofcourse he thinks that, he will be dead and other people will have to pay it back.

You clearly lack knowledge. A good reason to have a 0 national debt is because sometimes countries like to fund things and they don't want 20% of their revenue going to China.

THIS

THIS

We've paid off most of our high interest rate debt, and all of the new debt we're acquiring is cheap as fuck. The 19 trillion is extremely misleading and it takes a moderate understanding of finance to grasp the concept, something most idiot americans dont understand.

>We've paid off most of our high interest rate debt, and all of the new debt we're acquiring is cheap as fuck. The 19 trillion is extremely misleading and it takes a moderate understanding of finance to grasp the concept, something most idiot americans dont understand.
Dam your dumb

Even if the National Debt had 0 percent interest it would still be a massive problem because that is a shitton of money to pay off.

Speak english, letter agency-man.

Nigger alert.

Im actually a unionist, Canadians ought fly the stripes and send representatives to congress and ratify the constitution. Each territory would have to write their own though.

The answer to all your questions is crony capitalism and centralization.

Its an attempt to create a system of currecy that is elastic and can respond to market conditions without capitulating to the inherent inferiority of government services and centralized inefficiency.

>Im actually a unionist, Canadians ought fly the stripes and send representatives to congress and ratify the constitution. Each territory would have to write their own though.
Will we still have freedom? Usally when a country annexes another they shift all the wealth from the conquered place to the central area. Like when Italy annexed Sicily. And I do think that is a bad idea because our economies are different and a currency can't be valued to match our export levels.

>implying infinitely accruing debt isnt a bad policy
>this system will remain forever consistent and stable

Heres the thing though. Its not numbers that matter. Its the actual people. So if someone decides they no longer have trust in the scheme, they will pull out.

What happens when all of western civilizations pulls out from the fiat scam?

Ofc youd still have freedom. As much as I do here in Wisconsin. Elect good representatives and congressman.

Youd have to write a constitution, and ratify our federal one. All states must have a written constitution organzing their congress, setting state jurisdiction and outlining the rights of its citizens. Then they ratify the federal constitution and send rep.

It wouldnt be conquest it would be union. We would just use the same currency and you guys would have rights like we do that would be legally enforced.

Like the right to inherent freedom of speech, firstly and foremostly.

I will not say I agree to that because if I do I could be accused of hate speech. However the freedom of speech does seem nice. I won't have to lie about my country on youtube so people won't blackmail me saying "apologize or or I will report you to Canada"

>if someone decides they no longer have trust in the scheme, they will pull out
:)

THat's what she said.

But in all seriousness how can you sell negative bonds?

You don't, the holders redeem them.

...

This concept took a while for me to understand too. Basically we are so well developed and militarily powerful that we can make anything within reason happen, like, a prescription drug benefit program. The resources are there but the cash is not so we make it appear by law. As long as we don't abuse it by paving the streets with gold or something absurd then people keep using the dollar worldwide and the economy doesn't suffer.

The consequences are things like getting a downgrade in our credit rating, which right now is excellent.

Thats good isn't it

Are you saying the Federal government just prints money? Then why is the debt skyrocketing if we are printing rather than borrowing?

>we are so well developed and militarily powerful
>keep using the dollar worldwide
Yeah... "Fun" fact, do you know the last two people who stod before OPEC and argued in favour of abandoning the petrodollar?
Saddam Hussein and Muammar Gaddafi.
Look what happened.

Could be. We'll see long term.

>Saddam Hussein and Muammar Gaddafi.
They were killed for trying to print their own money instead of borrowing I believe.

The other idea is that we spend the money on useful things that pay off down the line, like education and military strength, and make the nation wealthier. Not the same kind of debt you get from charging a bar tab or dinner. Of course there are some pretty bad pork barrel projects, and there are people that will tell you that building a bridge in Bumfuck County that connects you to some guy's unimproved hunting property is a good investment because it puts some guy to work for a few months, but dont buy this bullshit.

Not sure about Saddam, but Gaddafi wanted to trade with gold.

>Not sure about Saddam, but Gaddafi wanted to trade with gold.
Really? That seems really dumb. I say this because governments can never expand the money supply to make paying debts easier. In fact due to deflation the debt will only get harder to pay off.

KEK liked the example. But why borrow at all why not print?

But that implies we spend it on reasonable things.

What sounds brilliant about borrowers and debtors in charge of tons of other peoples money?

>tfw when leafs begin to shitpost