Does National Debt Even Matter?
- Thread starter cam_blev
- Start date
When we’re no longer able to carry the debt with other countries, no longer able to get additional lending. In the simplest of terms, a bit like your mortgage. When the bank forecloses or won’t lend to you as you’re living in your car.
I don't know. I'm going to guess that it was a democrat.
Are you saying that that also means liberals care more about budget than conservatives?
If i had to guess I would say Clinton was able to do it as the tech bubble and housing bubble were starting to get out of control.
So yeah, we always pay our debt. Problem is we are always borrowing more than we have before. We do this by issuing bonds, which are held by both foreign powers (who buy our treasuries sobthatbwe import their products), domestically in private accounts, and intergovernmentally to things like the social security fund. If we actually started defaulting on bonds that were due we would have a serious problem because nobody would then be willing to buy our bonds anymore. We wouldnt be able to function as a government at that point as things stand now.
Also, as debt claims higher in relation to GDP it can cause debtors to demand high interest payments because of increased risk. It also can cause a lower dollar, which in turn makes our bonds less attractive since the payment is worth less relatively. There is also the looming issue of social security insolvency if we cant pay that fund back quickly enough to cover retirements.
So... If debtors demand high interest payments does this include the fed raising interest rates? If the Fed raises interest rates they have to start paying back higher interest on their loans also (possibly only new loans/bonds sold)?
by magic spell? build on your theory by sharing their dastardly methods or is that top secret?
I'm not saying for sure that it could or will happen just that it wouldn't surprise me.
You could possibly start by raising or lowering interest rates just slightly more extreme than would be normal. I'm sure there are economists that could point out a bubble that would take much to pop. I'm no economist. I believe there are enough people in power that would prefer it over Trump getting re-elected.
A trick meaning you don't think it could be done? You don't think there are enough powerful people that want Trump out of office or just not enough to do that?
Or by imposing stricter and stricter tariffs on imported goods?
Sorry, I shouldn't make that jab, but I couldn't resist. Regardless, I don't see how one side of the aisle instigates a recession all by themselves. The Fed is supposed to be apolitical. It has also been verboten historically for politicians to look as if they were trying to sway the Fed in one direction or another. That's changed recently.
What do I know, maybe the Corona Virus ends up the most deadly virus of all time. We should probably all panic right? This is going to cripple the global economy?
I'm sorry but the Dems didn't cause this virus outbreak and the Dems don't control the stock market amazingly enough. carry on
No one ever said only democrats have power, but you cant deny that they have the power to affect markets with media rhetoric.
BTW I stand by the fact the the economy is not nearly as healthy as most Trump supporters have claimed but this seems pretty clear to me. I expect in the end we will look back and say the Corona virus hysteria was overblown.
As do Repubs. What are the Dems saying these days that is affecting the stock market?
I suspect that they are blowing the Corona virus's effect on global markets out of proportion, the current market reaction is not because Corona virus has affected the market it is a reaction to people fearing it will have a long term negative affect on the market which is fueled my corporate media.
https://markets.businessinsider.com...-coronavirus-pandemic-fears-2020-2-1028949177
This is under Election 2020 News:
https://www.bloomberg.com/news/arti...ise-points-finger-when-they-fall?srnd=premium