We Can't Go Bankrupt (Be afraid, be VERY afraid)

Twitter ^ | 09-11-2021 | Chairman of the Budget Committee Rep. John Yarmuth (D-KY)

[Tallguy]

The US Dollar is gradually losing its place as a world reserve currency. At some point the IMF or some such organization will present a list of demands to the Federal Reserve Board. Then our wings are clipped.

[Wuli]

O.K.

But your statement (all branches of government will ignore the Constitutional mandate that the debt, even if nothing else, gets paid), in no way implied your chaos theory projection.

And since I do not have a crystal ball I can assume anything is possible, including anything other than your chaos theory prevailing. Just what? No one knows.

[Pearls Before Swine]

If Gordon Gono lived in the US, he could advise the Dems on MMT.

For those unfamiliar with the name, Gono was Zimbabwes treasurer.

[Qui is]

The dude is dumber than a bag of hammers.

[cgbg]

When folks start to get hysterical, the Constitution will be the last thing on their minds.

That is my point.

My analogy would be a family of meth-heads staring at a stack of bills with zero money in the bank...while watching their one vehicle getting repossessed outside.

[rlmorel]

"...We absolutely cannot go bankrupt because we have the power to create as much money as we need to spend to serve the American people..."

CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)
CHAIRMAN of the Budget Committee Rep. John Yarmuth (D-KY)

[Publius]

The global US dollar pool is the only pool of currency deep enough to handle $4 trillion of foreign exchange per day in the FOREX markets. There is an insatiable demand for US dollars, both as physical cash and as T-bills represented by bits and bytes. Those T-bills are the collateral of the world banking system.

How do you keep up with that demand? You spend more than you take in. If you’re a Democrat you expand entitlements. If you’re a Republican you fight endless wars.

If we attempted to even reduce those annual deficits – forget balancing the budget or paying down the debt – it would collapse the world banking system.

It would be like the Panic of 2008, where the real estate bubble collapsed, and Goldman Sachs exacerbated the problem by shorting its own mortgage-backed securities. A black hole opened up in the real estate pits accompanied by a global margin call. Banks feared they could not open due to a shortage of dollars to grease the world’s financial machinery. We had to create vast trillions of dollars (TARP) to bail out the banking system and keep the machinery greased.

As long as the US dollar is the world’s reserve currency, we can’t go bankrupt because we create the reality of that currency. If some other currency takes on that status, or the world returns to some kind of hard money standard (gold), then the game is over, and we have to go back to the way things were before 1933.

[yefragetuwrabrumuy]

Sensible conservatives say to “invest in gold” (rarely mention silver, for some reason, no idea), and if suggested they go beyond that, they say “and guns and bullets”.

However, then they stop short. They need to expand their horizons.

One of America’s first reliable currencies was liquor. Without improved roads, excess crops were a burden unless distilled down. Then their value went up and was stable, they were transportable, not prone to spoilage, and convertible.

During the Great Depression, some local areas were protected by what amounted to coupons, called “Scrip”. There was a paper currency and coinage shortage (much like today but without electronic transfer), and Scrip filled the gap.

That is, some amount of workers pay was made with scrip, which could buy many of the same things as cash, but with a discount on them. You would get more for scrip than for cash.

Scrip was *not* “legal tender”, so was dependent on trust of the issuer. But when that trust existed, everybody benefited. The local economy continued to function, and cash was concentrated to buy things that could only be bought with cash, and taxes.

A modern form of scrip could be made at home in a copy machine, with a large encrypted dot matrix code printed on the back, authorized with a phone picture and a PIN.

In any event, back to the “buy gold, silver, guns and bullets” argument, why not expand that list to other things?
Just in metals along, investment grade metals include platinum (about half the price of gold), palladium (somewhat higher than gold), and rhodium (very volatile, in ‘16 was $620, now $27,000).

All three of these metals have been minted into coins.

[napscoordinator]

We owe China 1.1 trillion dollars. Not sure how much they owe us. I’m not sure where this we owe China nonsense started. Out of 30 trillion, we hardly owe them anything.

[napscoordinator]

I think a 25 percent cut in social security would be a good start. Of course that won’t happen. Charge 500 a month for Medicare is helpful too. 144 dollars a month is embarrassingly low.

[napscoordinator]

So stupid. Prove that lie.

[Adder]

Let them call the note. We’ll just print that amount.

We owe ourselves the biggest amount. I bet someone will propose we deem that forgiven and voila...problem solved

[LittleBillyInfidel]

They now have learned to print ballots as well.

[A strike]

“The debt is only $29t. ... Not that big of a deal yet.”

Some recent NOOBs seem to be skating close to troll ice.
Bears watching.

[wastedyears]

$GME to the moon.

[cgbg]

Economics always was the “dismal science”...gonna get real dismal soon enough...

[Catfan15]

You aren’t exactly an oldtimer. You certainly put yourself on the radar.

[Jim W N]

Well, the fact of the matter is, the U.S is bankrupt, they just don’t know it yet.

And the the answer is most certainly to drastically cut the mostly unconstitutional federal government and their drunken-sailor spending and restore our Free Constitutional Republic. I don’t care if the world banking system goes haywire for awhile.

Sometimes a drunk has to go through withdrawals on his way to recovery. So be it. Otherwise the drunk, and in this case our Free Constitutional Republic, dies.

[StAnDeliver]

73 years old, decrepit pisspants, and yet no one willing to take him on in 2022 in an anti-incumbent election.

[cgbg]

We are talking meth withdrawal here—could kill the patient, but the patient is not going except in chains—and nobody has any chains.