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With the debt we've run up (and continue to expand) combined with the clowns running things in DC it's a wonder our government debt isn't rated on par with junk

by mikece 3y ago

With the debt we've run up (and continue to expand) combined with the clowns running things in DC it's a wonder our government debt isn't rated on par with junk bonds. EDIT: I find it humorous that people are taking offense and down-voting my comment as though I was referring to only a subset of the people in DC as clowns. We've been running a deficit annually since the early 80s (with one anomalous year in the 90s) and the fact we've not had blow-back in the credit markets is astounding. This is only possible when we enforce the petro-dollar system with the might of the US military, something the rest of the world has grown weary of. Once we lose reserve currency status our gov't debt will indeed slide to junk status and right quick.

piloto_ciego 3y ago
I’m not taking offense, but I think your understanding of geopolitics is a little… I don’t know, simplistic? I’m not trying to say that to be rude, but look… as long as we have the power we have and can browbeat other nations, we cannot and will not be coerced in to making good on our foreign debt. That’s it, that’s the whole reason. The entire global trade system depends on us flattening any bad actors with the threat of force. Other players would like to edge us out, but they can’t yet.
- mikece 3y ago
  > ...as long as we have the power we have and can browbeat other nations... I think the sunset on that ability is within view. The petro-dollar is key to our status as the world reserve currency and not only is oil now being sold in Rubles and Yuan but the push to eliminate fossil fuels also undermines the special status the USD enjoys.
  - thsksbd 3y ago
    [dead]
  - ROTMetro 3y ago
    Carl Icahn just lost billions betting against the USA. Your comment sounds interesting until you look at all the other countries in the world. We aren't competing with perfect, we're competing with a Europe still coasting off of it's Imperial power and forced wealth extraction from the rest of the world and China, a country whose central government has tangential control on it's regions, government is dependant on the sale of land to raise income, has levels of pollution that was horrific the last time I was there, population is declining when it is dependant on worker power to translate to world power, and brutal repression which does not lead to the independent thought necessary for dynamic intellectual growth. They are now removing economic numbers and discussion for the public and criminally investigating auditors which will surely to lead to a dynamic economic model that will generate growth for them.
deleted 3y ago
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yamtaddle 3y ago
Japan, Singapore, and Italy all appear to be a worse off than the US (a lot worse off, in the case of Japan), as far as government-debt-to-GDP ratio. They already lack the benefit the US gets from its "petro-dollar system". Are any of their bonds rated "junk"?

by mikece 3y ago

piloto_ciego 3y ago

I’m not taking offense, but I think your understanding of geopolitics is a little… I don’t know, simplistic? I’m not trying to say that to be rude, but look… as long as we have the power we have and can browbeat other nations, we cannot and will not be coerced in to making good on our foreign debt. That’s it, that’s the whole reason. The entire global trade system depends on us flattening any bad actors with the threat of force. Other players would like to edge us out, but they can’t yet.

mikece 3y ago
> ...as long as we have the power we have and can browbeat other nations... I think the sunset on that ability is within view. The petro-dollar is key to our status as the world reserve currency and not only is oil now being sold in Rubles and Yuan but the push to eliminate fossil fuels also undermines the special status the USD enjoys.
- thsksbd 3y ago
  [dead]
- ROTMetro 3y ago
  Carl Icahn just lost billions betting against the USA. Your comment sounds interesting until you look at all the other countries in the world. We aren't competing with perfect, we're competing with a Europe still coasting off of it's Imperial power and forced wealth extraction from the rest of the world and China, a country whose central government has tangential control on it's regions, government is dependant on the sale of land to raise income, has levels of pollution that was horrific the last time I was there, population is declining when it is dependant on worker power to translate to world power, and brutal repression which does not lead to the independent thought necessary for dynamic intellectual growth. They are now removing economic numbers and discussion for the public and criminally investigating auditors which will surely to lead to a dynamic economic model that will generate growth for them.

deleted 3y ago

[deleted]

yamtaddle 3y ago

Japan, Singapore, and Italy all appear to be a worse off than the US (a lot worse off, in the case of Japan), as far as government-debt-to-GDP ratio. They already lack the benefit the US gets from its "petro-dollar system". Are any of their bonds rated "junk"?