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My knowledge of these topics isn't very deep. But the fact that the deficit is in USD should make this case different. The US is overspending in a resource that
by fellellor 8y ago
My knowledge of these topics isn't very deep. But the fact that the deficit is in USD should make this case different. The US is overspending in a resource that it has complete control of, so the impact of that behavior should be quite different from what a typical borrower would experience.
- gremlinsinc 8y agoIt's not like the US can just print more money when it needs it, it needs to raise taxes to account for money, to put money in it's bank account. Printing more money can upset the scales of deflation/inflation.. I'm not an economist, so can't say more than that.
- ianai 8y agoInflation is highly preferable to deflation. Government spending has never been according to tax income and shouldn’t.
- fellellor 8y agoI think that's what happens in the case of regular world economies who don't have the luxury of a reserve currency. But if the US really did need to do all that accounting then how come they've accumulated a debt of 20 trillion? I'm not saying that the US economy is completely immune, but they certainly seem more immune than other economies.
- perl4ever 8y agoThere are other countries with a higher debt/GDP ratio, so I'm not sure what facts lead you to assume the US is the sort of outlier that demands a special explanation. The number $20T does not seem meaningful in a vacuum.