7 ms·

The US currently has $30,395,962,543,534.33 in debt and a GDP of ~$20,953,030,000,000.00 coupled with rising interest rates and record inflation. I think that's

The US currently has $30,395,962,543,534.33 in debt and a GDP of ~$20,953,030,000,000.00 coupled with rising interest rates and record inflation. I think that's the "leader's gamble" to be really concerned about.

StanislavPetrov 4y ago
And if you think that's bad look at Japan.
rghw35hw3 4y ago
Has this dynamic led to the US being downgraded amongst its creditors or to a noticeable decrease in demand for US debt?
rtpg 4y ago
What? The US can print dollars. It controls the funny money. Yes there are things that happen when they do that, but it is functionally impossible for the US to run out of dollars.
- berkes 4y ago
  By this reasoning, it's irresponsible for a leader of a country that is not the US, to pin its economy on this "funny money" that it cannot print, but that others can. Which is what El Salvador did untill recently. They still do, but no longer exclusively.
  - rtpg 4y ago
    Turns out that having full control of fiscal policy that can be coordinated with other policy decisions is a good idea for a nation!
  - kergonath 4y ago
    > By this reasoning, it's irresponsible for a leader of a country that is not the US, to pin its economy on this "funny money" that it cannot print, but that others can. Yes, yes indeed. That is a terrible idea. Though there are circumstances when it might not be the most terrible of terrible ideas and the alternative is worse. But no sane country that is not already in dire straits should do that.
keewee7 4y ago
Oh it's another case of Libertarians deceptively portraying national "debt" as the same as personal debt. There are plenty of countries with a higher national "debt" ratio that provide much better quality of life to the bottom 95% of the population than the US.
- garydevenay 4y ago
  I'm exclusively talking about sovereign debt, I am not talking about personal debt at all. The problem the US has is that it is one of the largest creditors of its own liabilities. The US prints its own money to issue itself debt with it. History's biggest ponzi.
  - keewee7 4y ago
    National "debt" is not debt at all and doesn't work like a person going to the bank and loaning money. There are plenty of countries with higher national debt / GDP ratio than the US and doing better than the US in terms of quality of life.
    - garydevenay 4y ago
      No one is implying, or actually discussing personal debt or likeness to personal debt but you. Of those with Debt:GDP higher than the US, who exactly are you aspiring to in terms of quality of life? https://worldpopulationreview.com/country-rankings/debt-to-gdp-ratio-by-country https://worldpopulationreview.com/country-rankings/debt-to-g...
qgin 4y ago
Inflation is good for those who hold debt. 5% inflation means you owe 5% less, in real terms.
- postingawayonhn 4y ago
  It depends a bit on what interest rates do and whether your debts have fixed or variable rates.
  - kergonath 4y ago
    It also depends on your salary following inflation, which really is not a given.
    - cudgy 4y ago
      It also depends on how the assets purchased with said debt (previously fueled by low interest rates) perform in a high interest rate environment.
erispoe 4y ago
The fundamental difference is that the US is the currency issuer of the USD, and that the USD is still overwhelmingly a reserve and trade currency for other states. Neither of these are true for El Salvador and BTC.
- garydevenay 4y ago
  The Federal Reserve is the currency issuer, not the US Government.

StanislavPetrov 4y ago

And if you think that's bad look at Japan.

rghw35hw3 4y ago

Has this dynamic led to the US being downgraded amongst its creditors or to a noticeable decrease in demand for US debt?

rtpg 4y ago

What? The US can print dollars. It controls the funny money. Yes there are things that happen when they do that, but it is functionally impossible for the US to run out of dollars.

berkes 4y ago
By this reasoning, it's irresponsible for a leader of a country that is not the US, to pin its economy on this "funny money" that it cannot print, but that others can. Which is what El Salvador did untill recently. They still do, but no longer exclusively.
- rtpg 4y ago
  Turns out that having full control of fiscal policy that can be coordinated with other policy decisions is a good idea for a nation!
- kergonath 4y ago
  > By this reasoning, it's irresponsible for a leader of a country that is not the US, to pin its economy on this "funny money" that it cannot print, but that others can. Yes, yes indeed. That is a terrible idea. Though there are circumstances when it might not be the most terrible of terrible ideas and the alternative is worse. But no sane country that is not already in dire straits should do that.

keewee7 4y ago

Oh it's another case of Libertarians deceptively portraying national "debt" as the same as personal debt. There are plenty of countries with a higher national "debt" ratio that provide much better quality of life to the bottom 95% of the population than the US.

garydevenay 4y ago
I'm exclusively talking about sovereign debt, I am not talking about personal debt at all. The problem the US has is that it is one of the largest creditors of its own liabilities. The US prints its own money to issue itself debt with it. History's biggest ponzi.
- keewee7 4y ago
  National "debt" is not debt at all and doesn't work like a person going to the bank and loaning money. There are plenty of countries with higher national debt / GDP ratio than the US and doing better than the US in terms of quality of life.
  - garydevenay 4y ago
    No one is implying, or actually discussing personal debt or likeness to personal debt but you. Of those with Debt:GDP higher than the US, who exactly are you aspiring to in terms of quality of life? https://worldpopulationreview.com/country-rankings/debt-to-gdp-ratio-by-country https://worldpopulationreview.com/country-rankings/debt-to-g...

qgin 4y ago

Inflation is good for those who hold debt. 5% inflation means you owe 5% less, in real terms.

postingawayonhn 4y ago
It depends a bit on what interest rates do and whether your debts have fixed or variable rates.
- kergonath 4y ago
  It also depends on your salary following inflation, which really is not a given.
  - cudgy 4y ago
    It also depends on how the assets purchased with said debt (previously fueled by low interest rates) perform in a high interest rate environment.

erispoe 4y ago

The fundamental difference is that the US is the currency issuer of the USD, and that the USD is still overwhelmingly a reserve and trade currency for other states. Neither of these are true for El Salvador and BTC.

garydevenay 4y ago
The Federal Reserve is the currency issuer, not the US Government.