Posted on 03/05/2024 6:34:42 PM PST by bitt
America won’t go bankrupt - well, it won’t officially go bankrupt. The numbers look bad, and fiscal conservatives are hyperventilating, but the debt is in our own currency and is just a claim on future tax revenues. The Fed, the Treasury and everyone at the top of the monetary system can agree on a painful inflate the debt away process. America is technically in it right now. Inflation that feels like +10% is not happening by accident, and is helping all debtors right now. Buying a home right now is tough for new buyers, but everyone who purchased from 2009 to 2019 is sitting pretty. We do need a stronger or more stable currency to play as a financial hub of an empire, whether global hemispheric or even just the NAFTA area. If this were to become an issue, it plays into the hands of one candidate with unique experience. Former President Trump has a special skill at sales, and his tumultuous but successful career is a peculiar resume that no one else has.
How would Trump sell a restructuring and sell it effectively? He would use his own history in the real estate game, and a national restructuring of debt would involve quite a bit of real estate to sell off, assets to liquidate, assets to protect for future growth and an ability to sell anything to make sure creditors would buy the plan. You can see it now in your mind’s eye. Even more realistic, you can hear the words:
(Excerpt) Read more at theamericansun.substack.com ...
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Inflate my grocery bill and energy costs in order to make the national debt look less imposing? Yeah, sure.
Deficit spending would have to be permanently stopped. Trump would have to become Milei. And have a legislature which goes along. Super unlikely for all that to happen.
Cheating people out of $34 trillion is going to make some of them very upset.
“Inflate my grocery bill and energy costs in order to make the national debt look less imposing? Yeah, sure.”
Inflation is the only way to pay off the debt.
Too bad the politicos will just use it to continuing to excessively spend.
Things to file along with CWII and Great Depression II as never happening.
The future is inflation, spending freezes and tax hikes.
Folks think that they’re suffering now under inflation?
Default and/or restructure-same folks will be on their hands and knees wishing the good old days of only 2024 inflation rates.
Stop baseline budgeting, stop spending fiat money!
This can all stop tomorrow but the bastards in office refuse to address the real issue—stop spending money and abolish all alphabet federal agencies that do nothing.
The federal budget can be balanced with a surplus if only these bastards had testicles. CUT SPENDING, ABOLISH WORTHLESS AGENCIES!
Why give Washington one dollar to get a penny in return? STOP SPENDING!!
Govt spending needs to be 15-25% of GDP-it should be codified.
as that is the range of taxes collected regardless of the tax code since WWII.
Spending has been over 25% of GDP for years on end and they’ve never collected over 25% of GDP in taxes in one year.
> Super unlikely for all that to happen. <
Yes. Trump needs to return to the White House for many reasons.
But when it comes to the deficit, Trump was part of the problem. He did not veto a single major spending bill. And the deficit rose under him at roughly the same rate as it did under Obama.
Sure, Congress is the main culprit here. No doubt about that. But the buck stops at the Oval Office. One can only hope that Trump 2.0 does better in this regard.
My thought is to sell half of Alaska to Hungary and Argentina for about $20 trillion to bring down the debt. Would create great new trade routes, oils lines, etc.
Yeah. Wait until they outlaw cash and force us to use a central bank digital currency.
Then they can let us know just exactly how much our savings are worth. And when we have to spend it.
And how we will have to spend it.
Bkmk
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This idiot doesn’t know what a number 34 trillion means. 34trillion seconds is 10,600 CENTURIES!
The only way this country gets out of debt is to either repudiate the debt or inflate the currency wildly so that an ounce sells for $200,000,000. The first option destroys our credit rating which gives you 30% mortgages and 66% credit card rates. The second option impoverished all of us by making savings and IRAs worthless..
No politicians exist with the political will to do that.
No politician will ever get elected on a “tighten our belts” message.
If something can’t last forever (our rate of taking on debt), it won’t. There will be a reckoning and it won’t be pretty.
Cut Federal spending.
Slash Federal bureaucracies.
Inflate my grocery bill and energy costs in order to make the national debt look less imposing? Yeah, sure.
My grocery bill, insurance, and energy costs are already inflated and continue to inflate, so I don’t see what’s the problem?
/sarc, of course. The problem is unfettered bottomless money for government.
The federal budget, and therefore the structural deficit, is driven be entitlement spending, with Medicare, Medicaid, and Social Security as by far the biggest problems. No discussion of addressing the fiscal crisis that doesn’t start there is credible.
Is the federal budget littered with discretionary programs that we could/should cut? Of course. But that is almost irrelevant in the big picture — little sandcastles on the beach in the face of an incoming tsunami. Draconian cuts in federal discretionary spending and defense are window dressing. At most they might buy a little time.
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