Our National Debt - Interest Payments over Time | Page 3 | TigerDroppings.com

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SlowFlowPro
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re: Our National Debt - Interest Payments over Time


well that begs the question

do i spend a lot of my resources now learning to survive the collapse, or do i "live it up" now and take advantage of the high life that won't be available in my lifetime after the collapse?






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SlowFlowPro
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re: Our National Debt - Interest Payments over Time


quote:

So if they won't invest, then why are people lending to governments? In other words, the governments better offer one hell of a return on that investment if they are going to convince people to part with their deflationary currency.

well what they provide has intrinsic value (or at least PERCEIVED intrinsic value)

for example, let's just assume government programs work

can you put a number on defense? security of markets? social stability offered by a welfare state? it becomes difficult

your average perso certainly can't assign these values






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WikiTiger
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Member since Sep 2007
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re: Our National Debt - Interest Payments over Time


quote:

well what they provide has intrinsic value (or at least PERCEIVED intrinsic value)


Even if it's just perceived value, certainly at some point perception is reality.

quote:

can you put a number on defense? security of markets? social stability offered by a welfare state? it becomes difficult

your average perso certainly can't assign these values


No individual can do that. Certainly a market can, though. And the freer the market, the more efficient it will be at pricing that. Perhaps in a world of shrinking governments, the populace will finally accurately purchase the optimal amount of defense, welfare, etc. that is necessary.



As it stands now, our system is self perpetuating in a chicken and egg kind of way. For instance, the military is big and strong because of the ability to inflate the dollar. But in order to protect the dollar as a world reserve currency which protects the ability to inflate, the military needs to be big and strong.



This post was edited on 4/28 at 3:22 pm


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SlowFlowPro
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re: Our National Debt - Interest Payments over Time


quote:

Perhaps in a world of shrinking governments, the populace will finally accurately purchase the optimal amount of defense, welfare, etc. that is necessary.

theoretically possible, but nothing prevents people from just developing a similar system to today, either

i'm just saying that even with competing currencies, we could still see the same thing occur






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NC_Tigah
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re: Our National Debt - Interest Payments over Time


quote:

 our debt is an asset
actually for those with resources . . . i.e., the 1% . . . our debt (increasing interest rates) could be an asset. Sadly, that is not the case for the vast, vast number of Americans or the country.






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constant cough
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re: Our National Debt - Interest Payments over Time


Our Debt is an asset alright. China's asset.





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aaronb023
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re: Our National Debt - Interest Payments over Time


since when is debt considered an asset unless you are the debtee?





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Bunk Moreland
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re: Our National Debt - Interest Payments over Time


quote:

Our Debt is an asset alright. China's asset.


Well, it's like the old cliche...if I owe you $100, I have a problem. If I owe you $10 million, you have a problem. I don't know when this game of chicken ends. How would they even call in the debt? Would they dump dollar holdings? We just need to go to war to clear the decks.






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SlowFlowPro
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re: Our National Debt - Interest Payments over Time


China doesn't hold nearly as much as we do







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constant cough
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Lafayette
Member since Jun 2007
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re: Our National Debt - Interest Payments over Time


quote:

China doesn't hold nearly as much as we do



Well that certainly explains the inflation. But it's comforting know that the Government's left pocket owes it's right pocket. Hmmm I wonder what they're gonna do for more money now?






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TigerDog83
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Member since Oct 2005
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re: Our National Debt - Interest Payments over Time


quote:

1) When will that happen? Who knows....I'd guess within 50 years.

2) Will technology be sufficient enough to soften the blow? If not, there will be a lot of violence and wars.


I've read some theories postulating that the US could be left out in the cold as Asia and the BRICS countries isolate the declining dollar in the future. Now if that is feasible or not remains to be seen, and I could see the US military making every effort to prevent currency wars from taking down their control. I tend to think that your second question regarding the violence and wars could be a real possibility if people start to have a hard time finding food and necessities. Tangible resources would be an advantage and the US does still possess a fair amount compared to other world players.






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