The Unofficial But Kind of Official US Pawliticks Thread

[Poopadoop]

If the US goes bankrupt, the entire globe enters a new Dark Age. As it always has been, the biggest and baddest subjugates everybody else. What we are currently seeing is the US doing so well that every other nation is depending upon it. And don't bring up the EU crisis as a counterpoint unless you want to demonstrate that you're unaware that their problem is really just a technicality in having monetary unity without fiscal unity.

It never ceases to amaze me how much you guys are brainwashed to believe the whole world revolves around the US, and we can't possibly manage to feed ourselves without you. Fact is, the US is no more than a cog in the world's wheel. A big cog, granted, but not any bigger than Europe, and slowly and surely getting smaller all the time.

The EU crisis is not due to a 'technicality'. That is lolable. It is a common market with a common currency, but if releasing countries like Greece, Ireland, Spain, from that bond would have solved their problems, don't you think it would have happened by now? In fact, those countries are pleading to stay in the EU because it is much better for them than the alternative.

The US's place at the top in the complex hierarchy is more reinforced now than it has ever been. This is why many wealthy investors are willing to take a loss on their investments in order to reduce risk by putting them in the US.

Any hard facts to support these assertions? A lot of economists use GDP as an index of economic power, so what index are you using?

Also, who are these people who are so wisely investing in a negative EV proposition when everyone else is buying up precious metals? And what are these investments they're making, and what do they have to do with the US gov't? Pretty sure T-bills still pay interest if that's what you're referring to, but correct me if I'm wrong.

The US economy is such a juggernaut that it can write off its debt or not even pay it without much problem, but if it does so every other nation would convulse. The rest of the world has more incentive for the US to stay true to its debt than the US does.

You're again overestimating the power of the US in the world economy. No doubt it would be bad for everyone if it defaulted on its loans, just like it's bad for everyone that the EU has broke countries in it. Everything is interconnected.

But the idea that it would not be much worse for the US itself is where you're off. The US gov't runs on credit; they simply can't manage without it as things stand. So having no more credit means you would have to balance the budget. Today. That would be worse for you than everyone else. And since most of your credit comes from your own citizens and corporations, it's mostly going to fall on your people if those loans are defaulted on.

Not only does nobody know what the magic number for "bad debt" is, but we have strong evidence that the US is nowhere close to where that number would be.

Because there are other countries where the debt:GDP ratio is greater that haven't gone bankrupt? That's fine, but how can you be sure the same will be true for you? And please don't just repeat its because the US is a big economy again. That's not convincing.

I would like the US to pay down its debt gradually and becoming a longterm lender

Well then we are closer to agreeing than I thought. Fwiw, I never said you should crash the economy just to pay the debt off right away. My point when i first started posting ITT was that you are spending all kinds of money on military for no tangible gain, while your debt is expanding exponentially towards whatever the 'magic number' is (and we're both clear that number is not infinite). Ergo, military overspending is damaging to your economy.