Eliminate billionaires. Boom. Done.
100% tax on any amount greater than $999,999,999 and also tax the churches.
The thought of taxing churches makes me warm inside
Unfortunately this is about the federal government’s “debt,” which is a red herring, and not the country’s international balance of payments deficit.
It's true that they can just print money here, but this leads to secondary effects that the article touches on. Specifically, increased currency volume tends to mean devaluation leading to private lenders to tighten up.
If they print enough of it without shredding any through taxation, yes, but I think this is commonly overblown so Congress can claim they can’t pay for stuff, except of course for military stuff. This article was timed for Congress to make spending decisions; they come out every cycle. Congressional leaders announce an agreement on spending levels, a key step to averting shutdown
Right, as far as public spending goes there isn't really a problem. They can print to an infinite amount because the debt is in their own currency, and as long as you print the currency, you can print however much you want. There's never going to be a default because the fed can just create more credit. The government can always pay its debt by simply printing the money.
The problem for the US economy lies with private debt that is leading to a default. Creditors are tightening their lending which is leading VC funded businesses to crash. Meanwhile, individuals become increasingly unable to service their debts, we're seeing them being forced to forfeit their property. Private banks that are holding debt also end up with bad debt as a result. This sort of dynamic is precisely what we saw leading up to the 2008 crisis. We're now seeing similar things happening, but on a much bigger scale.
The Fed raised their rates in order to tighten credit, cool the economy, and cause layoffs. And they had to have known that people would start defaulting on their debts. I think that’s the main driver here.
My understanding is that the government knows these banks are insolvent from underwater bonds, and quantitative easing is how they’re trying to keep that swept under the rug. It’s some hat trick around the bonds’ values.
The bonds are underwater as a direct result of the Fed raising rates, and they knew, or should have known, that this would happen.
I think this is the QE hat trick currently in play to rescue banks: https://longviewfa.com/how-the-banking-failures-unfolded/
A new facility that was enacted by the Treasury will provide help to these banks by allowing them to place these underwater bonds at the Federal Reserve at full price.
The productivity from AI will save the US from this debt problem. /s but not /s.
The last President with a balanced budget was Clinton. If Republicans cared about a balanced budget so much, why aren’t they asking him how he did it?
can't they just print the money? i don't get why debt is a problem for this case
The article gives a few reasons, one being that private lenders tend to tighten up when inflation is rising because they realize that businesses won't be able to grow at a sufficient rate for them to make a return.
This is the best summary I could come up with:
A boiling frog situation is one in which people fail to act on a potential problem that grows over time, causing it to become more severe until it eventually bubbles over.
It's an issue that has worried economists for years, and calls for something to change have grown louder as the government continues to borrow at record volumes.
The debt picture will only worsen in the coming years, according to the Congressional Budget Office, which estimates that the US's entitlement spending, mandatory spending, and net interest payments on the debt will exceed the government's total revenue by the early 2030s.
"The problem for the US is the starting point; every round of fiscal stimulus brings the US one step closer to debt unsustainability," JPMorgan strategist Michael Cembalest said.
"However, we're accustomed to deteriorating US government finances with limited consequences for investors, and one day that may change (the boiling frog analogy)," Cembalest added.
Risks of a recession are still alive this year, Cembalest warned, though he noted that a coming downturn would likely be mild.
The original article contains 384 words, the summary contains 175 words. Saved 54%. I'm a bot and I'm open source!
As real a threat as the war on Christmas