No. of Recommendations: 8
hclasvegas: Lie about how much we love them. American debt and counting...
Is "For American grand parents who Lie about how much we love them" some sort of riddle?
hclasvegas: ...btw way. Obama, Trump, and Biden are equally to blame.
Equally?
Now that there's a Democrat president in the White House and it's an election year, Fight Clubber Tyler Durden is worried about the nation's debt. Did Tyler worry about it when president Trump was adding nearly $8 Trillion dollars to the debt during his four years in office? I didn't think so.
So is this just another turd you're dropping in the punch bowl or would you like to have an actual discussion on debt, debt to GDP, and America's unparalleled fiscal policy autonomy? I mean, we ain't Japan or Greece or Venezuela.
The last time I checked, our gross debt as a percent of GDP was better than the G7 average. The US enjoys far more monetary and fiscal policy autonomy than Eurozone members like Italy and Greece -- the US borrows in its own currency and has a floating exchange rate.
The US issues the world’s dominant global reserve currency.
Much of the capital in the world is denominated in dollars and investors’ demand for holding our debt and currency holds steady.
Finally, if you look closely at Fight Clubber Tyler Durden's chart, the dramatic rise in debt occurred during the Trump years when the world was grappling with a once-in-a-century pandemic. BTW, you left out George the Lesser, who shoveled money at the financial crisis and then conveniently handed the shovel to president Obama to dig us out of the mess he inherited.
But please tell us about the economic trade-offs of using debt or taxes to finance infrastructure, scientific research, education, health care, the military, or <name your favorite or least favorite program>.
I suspect we'll quickly move away from an economic discussion into a political discussion because the US, given its dominance in the global financial system, can afford pretty much whatever it needs and wants. The question becomes which are the needs and which are the wants... and how will those costs be borne?
Just don't tell us the government should be run like a household because you'll only be wasting our time.
