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I find the idea that the US' willingness to run deficits is an uniquely American thing very curious. To me it is obvious that any country in the world would do
by throwaway4good 3y ago
I find the idea that the US' willingness to run deficits is an uniquely American thing very curious.
To me it is obvious that any country in the world would do systematic deficits if they could do it without tanking the value of their currency.
- uoaei 3y agoThe budget deficit represents the monetary value of everything the government spends money on (e.g., places, programs, assets, investments, etc.).
- throwaway4good 3y agoI was referring to trade deficits.
- uoaei 3y agoAnd I was not. The statement holds for both anyway, in cases of hegemonic, sovereign, fiat currencies.
- nomay 3y agoThen thay are better off doing it their own currency, so they don‘t even have to pay back.
- throwawaylinux 3y agoAside from petroleum profiteers like Norway, Russia, Kuwait, etc., what countries don't run "systematic deficits"?
- spacebanana7 3y agoI find the willingness to run surpluses far more curious. Emerging markets are surprisingly happy to give vast amounts of oil, gold and manufactured products in exchange for claims on overseas assets that can be frozen or devalued at the stroke of a pen.
- TrapLord_Rhodo 3y agowell, they still have to pay the bond notes. The interest due on the US debt is around 40% of income tax.