Balanced budget

Let's say the government runs a """balanced budget""" indefinitely like the Austrians and lolbertarians want, what would realistically happen?

Petrodollar collapses. It is built on oil sales and debt. Cars use fuel/oil, and consumers create money when they use fiat currency to pay for them. Although this is an elementary example.

Where can I find info on petrodollar?

the petrodollar is the agreement that opec only accepts us dollars for oil. This means there is always demand for US paper.

It has literally nothing to do with government spending except for the fact because of it the US government can basically write a blank check forever

>This means there is always demand for US paper.

This. Although some leaders, like Gaddafi, promoted the idea of selling oil and other natural resources for gold instead of USD.

I wonder what happened to that guy...

Why do you want the dollar to crash so badly and ruin the lives of millions of people?

if we ran a balanced budget we would stop borrowing from the future to pay the present. Sooner or later the game is up. it's like a farmer grinding his wheat seeds for food instead of saving them to plant next season.

Sooner or later, we will run out of spensable assets.

i dont want to end the petrodollar overnight that would be disastrous.

do you think opec will indefinitely accept us dollars for their oil? sooner or later they will start accepting other units of trade and then it's over. we need to ween ourselves quickly. it's going to be painful either way.

This. But also: taking on debt is extracting wealth from the future to have it now. The more you extract from the future, the lower your prosperity will be in the future,even while extracting more wrath in the form of debt. The further in the future you extract the wealth the marginally less you are realizing today.

There comes a point where the debt catches up and no matter how much debt you try to issue, you get almost no notable increase in prosperity now.

The process of doing this also systematically funnels wealth vertically in society because fewer and fewer people over time can actually stay ahead of the debt so to speak and remain both producer and consumer. Most Americans are so levered with debt or in such poor employment that they can neither spend nor produce.

Mass immigration is a brute force way to basically increase the number of people who can be levered up with debt to keep the gravy train for those at the top going.

Half the nations in the world, particularly the western world's economies would collapse

Not to mention that sucking foreign oil cock is a policy disaster no matter what you think about climate change.
inb4 Putin only accepts payments in Yuan for Ruskie gas. :^^^^^^)))
Slowed growth in exchange for lasting stability. The Great Depression was a result of America forgetting what they stood for and going full GOTTA CONTROL THE MARKETS HURR.

usury is completely different from the petrodollar

the great depression was caused by central banking

the US government literally paid farmers not to grow crops while people starved in the streets

completely false

That's what I meant with market controls.
>tfw american libshits complain about NASA but never about Agrarian subsidies
Your so-called intelligentsia needs to be brought to heel, user. They're a disease and spreading themselves everywhere.

Yes. The lack of new debt generation and fiscal conservatism would send interst rates negative

i guess I could see that. I always thought negative interest rates would be the result of central banks monetizing debt, but the affect here is the same.

We've really painted ourselves into a corner holy shit.

corporate gib me thats would end(overspending in every single government contract)
NEET&Minority gib me thats would end, and people will riot

Cheap money is the single most degenerate drug on this planet and the hardest to get independence from.

I take heroine away he has a bad time and dies. I take away 's cheap money and his entire NATION goes into withdrawal.

Post pictures of Korean feet

not only that but it distorts and misallocates scarce resources.

it's turned wall Street more into a casino and less into investing

You stop ruining the future as much as we are now and the private sector will get access too more and cheaper resources.

Ayup. Then again, I'm a die-hard capitalist but I L O A T H E most derivatives and consider them another big issue of global stability.

Once money becomes abstracted to this point the entire system is basically just a big fucking circus.

That's probably one argument FOR the gold standard.

Sure, it would induce massive stagnation on a global scale but... at this point I am no longer sure this would be a bad thing.

lol I like derivatives

it's insurance! it's not regulated like insurance but that's exactly what it is.