Comment by pjmorris
2 days ago
Government debt is a result of government spending into the real economy. It is where we get the taxpayer dollars that we spend, some of which go back to the government itself. A government without debt is also an economy without money.
Governments with central banks can mismanage their currency, but they can't run out of it.
They won't run out of currency, but the people that use it will run out of faith.
> They won't run out of currency, but the people that use it will run out of faith.
Which is what happens when bond yields go so high that governments default. To my limited understanding, US Treasury bonds are used to determine the 'risk-free rate' of return because the US government reliably pays its bills.
When? At what specific (magic) number does everything come crumbling down? We're at ~36 Trillion today, would 37 Trillion the number that will cause people to run out of faith? I mean that's only one more than we have today, surely people won't run out of faith for one more. So maybe it's 40 Trillion? But come on, we're at 36, people can't possibly give up on the US dollar just an 8% increase. How about 100 Trillion? 500 Trillion? I'm not sure you know how this game is played.
I'm not just talking about US citizens, by the way. Foreign alliances are forming to dethrone the dollar as we speak. It will not last forever. I didn't say it would come crumbling down overnight. It will be a gradually shift away from the dollar. To believe the dollar is invincible is incredibly naive.
Why wait to spend that (magic) money at all then? What is the point of setting an annual budget? Earmarking contracts out for all these organizations by little million increments every year seems illogical when you can literally just put a few trillion in their hands today.
Why not spend all 500 trillion today? What are we waiting for?
I am entirely certain you do not believe in your own position.
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