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The point I like to make about student loans: The USA gets to print a great deal of money and run huge deficits without incurring much inflation (even taking i

The point I like to make about student loans: The USA gets to print a great deal of money and run huge deficits without incurring much inflation (even taking into account the recent inflation event). Why? Dollars are the world's reserve currency. Why? Demand for dollars is high, partially because oil is priced in dollars (petro-dollar recycling). Why? Well Iraq tried to change this, look what happened to them.. you get the idea, it's partially a consequence of history and our huge military helps. So then it comes down to who gets this extra money. In petro-dollar recycling, much of it goes to defense contractors. I think it's entirely valid to have a discussion on the equitable distribution of this money and arguments that we can not afford loan forgiveness are total BS. The reason the money goes to the rich is because they own congress. It's in their vested interest to keep the price of labor low- one way to do this is to get people deep into dept as soon as possible.

tracker1 3y ago
The BRICS countries are trying to change that, and they are gaining some momentum in terms of negotiation using China's Yuan becoming an alternative baseline currency. This will likely shake things up quite a bit. So I don't think it will stay USD in terms of lower economic impact from printing more money. I think it will get really bad within the next decade or so. We're rapidly approaching a point where we won't be able to print our way out, or cut spending enough to get out of it at all.
- bamfly 3y ago
  What would you expect to see happening, in a developed country that doesn't have the benefit of debt denominated in USD and of control over USD, if they had an even worse debt:GDP ratio than the US does? I ask because there are a few such countries, and they seem to be doing OK. They shouldn't be, if this is something that'll definitely cause serious problems for the US—right? It should already be "really bad" for those countries, I'd think.
  - tracker1 3y ago
    Everything is fine until you realize that the money is just ink on paper, so to speak, with nothing behind it. The strength of the US economy and position in global markets has been what's kept things strong. I don't know that it will hold, and have no idea when banking institutions won't be able to prop up peoples faith in said system anymore. I'm not sure if I expect market collapse or WW3 to happen first... right now, feels like a crap shoot in either direction.

tracker1 3y ago

The BRICS countries are trying to change that, and they are gaining some momentum in terms of negotiation using China's Yuan becoming an alternative baseline currency. This will likely shake things up quite a bit. So I don't think it will stay USD in terms of lower economic impact from printing more money. I think it will get really bad within the next decade or so. We're rapidly approaching a point where we won't be able to print our way out, or cut spending enough to get out of it at all.

bamfly 3y ago
What would you expect to see happening, in a developed country that doesn't have the benefit of debt denominated in USD and of control over USD, if they had an even worse debt:GDP ratio than the US does? I ask because there are a few such countries, and they seem to be doing OK. They shouldn't be, if this is something that'll definitely cause serious problems for the US—right? It should already be "really bad" for those countries, I'd think.
- tracker1 3y ago
  Everything is fine until you realize that the money is just ink on paper, so to speak, with nothing behind it. The strength of the US economy and position in global markets has been what's kept things strong. I don't know that it will hold, and have no idea when banking institutions won't be able to prop up peoples faith in said system anymore. I'm not sure if I expect market collapse or WW3 to happen first... right now, feels like a crap shoot in either direction.