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And by “free” we mean “added to the gigantic mountain of debt our children must pay off“

• dlp211 4y ago
  This is not how the national debt works.
  • concordDance 4y ago
    You thinking inflated away or a default? Because those who have bought treasury bills are expecting that money in a few years.
    • dlp211 4y ago
      THere is nothing that says that we ever have to pay off the debt. Debt can, and has continued to accrue to this nation since its founding. It is middle school thinking that debt incurred today must be "paid by our children". It's just not at all how the national debt works...like at all.
      • tomcam 4y ago
        Yes that middle school thinking is called “arithmetic“
      • concordDance 4y ago
        So when bond holders come by wanting their money do you not give it to them (defaulting) or do you just issue more (inflating)? Because those are your two options. Note also that investors eventually get wise to inflation and start putting their money in gold or somesuch.
        • dlp211 4y ago
          We issue more bonds. And because we do issue the bonds and don't simply print the money, it is non-inflationary. This is because there is an asset backing the dollars instead of simply paying out the money, ie: the accounting book is balanced, there is an asset and a liability. It's only when you print money and give it away is the money inflationary. This is why we can continue to increase M1 and not see massive inflation. As the overall economy grows, there are more assets available to back the currency.
• jklinger410 4y ago
  You should keep your concern trolling about federal debt focused on things that are actually bad and not bail outs for citizens who are constantly getting fucked by the economy.
• zuminator 4y ago
  Pay off to whom?
  • carom 4y ago
    Various holders of US debt. The federal reserve, foreign holders, mutual funds, banks, local governments.
• Jerrrry 4y ago
  The government that printed the money was supposed to reduce the money supply, while capturing productivity from more profitable industries, effectively neutering the difference. Turns out it is easier to print money than to burn it. The Fed is trying to command the economy, but ultimately people must be more productive for a little less. QE easing and asset deflation have some part, but unemployment must increase, or we simply won't have the "strong labor market" that increased productivity requires. We don't have the sentiment or confidence, and that is going to be devastating if not quickly corralled - inflation can lead to hyperinflation exponentially. Not for the USD - we have control of the world's economy - which is why the MIC complex and foreign policy is actually an investment in the largest scale. That difference, between productivity gains and captured output, is the price our future generations pay (in inflation) for continuity _now_. But it isn't fair to push such a can down the road. Things need to pop sooner rather than later, and the Fed would like a "soft landing" - no pop, which may not be possible at this point.