6 ms·

Do you mean how long this system can last for the world, or for the US? I would be surprised if this system lasted 15 more years in the US.

shadowgovt 2y ago
What causes it to collapse?
- JKCalhoun 2y ago
  What has caused disruption in the past? Greed, I suppose.
- afh1 2y ago
  If I knew I wouldn't tell you
- ursuscamp 2y ago
  Persistently high inflation and economic decline, plus geopolitical blunders, leading toward US treasuries beginning to lose their status as global reserve asset and precipitating a US debt crisis.
- webninja 2y ago
  OP here. Spending more than you take in tax revenue leads to a budget deficit. Budget deficits have to be made up with borrowed money, which in practical terms are treasury bonds. Interest on the borrowed money starts out low. But with the power of compound interest, it will eventually swallow and consume everything if left unchecked because it grows exponentially. The way this is fixed is by balancing the budget and leaving a little budget surplus to pay down the debt. All of the money that would’ve been going towards the military, the schools, the electric grid, the roads, job training & placement for unemployed people, food stamps (snap), social security, medicare, agriculture storage, and the various 3-letter departments must go to interest on the debt first and none of the money is left over to go to programs for The People anymore. What would you do as a congressman if for every $4.5 Trillion you brought in from taxes, you saw $6.2 trillion being spent and were left with a $1.7 Trillion budget deficit? $870 Billion of the money spent (14%) is the interest growing on the total government debt which is at 34 Trillion now. These are all the real numbers. What would you do as a congressman whom has the power to make changes and balance the budget?
  - shadowgovt 2y ago
    I don't think the story is that simple when we're talking about a country that can print the currency that be debt is demarcated in. A budget deficit means that the government has chosen not to print enough money to offset its spending. Now, the government printing its way to liquidity does have consequences, but fundamentally balancing the US federal budget is not like balancing a house budget. And because the government can print the money at any time, it really doesn't matter how fast the interest is growing. What matters is whether people keep showing up to give the government the money.
CSMastermind 2y ago
I'll take that bet. I don't even think we'll see an attempt at the federal government being fiscally responsible for another 15 years (though I do suspect things will get better in the late 2030s). Either way the US will be fine barring something stupid maneuver like embracing modern monetary theory.
wg0 2y ago
In general I mean. Governments spending more, collecting less and the difference keeps growing.

shadowgovt 2y ago

What causes it to collapse?

JKCalhoun 2y ago
What has caused disruption in the past? Greed, I suppose.
afh1 2y ago
If I knew I wouldn't tell you
ursuscamp 2y ago
Persistently high inflation and economic decline, plus geopolitical blunders, leading toward US treasuries beginning to lose their status as global reserve asset and precipitating a US debt crisis.
webninja 2y ago
OP here. Spending more than you take in tax revenue leads to a budget deficit. Budget deficits have to be made up with borrowed money, which in practical terms are treasury bonds. Interest on the borrowed money starts out low. But with the power of compound interest, it will eventually swallow and consume everything if left unchecked because it grows exponentially. The way this is fixed is by balancing the budget and leaving a little budget surplus to pay down the debt. All of the money that would’ve been going towards the military, the schools, the electric grid, the roads, job training & placement for unemployed people, food stamps (snap), social security, medicare, agriculture storage, and the various 3-letter departments must go to interest on the debt first and none of the money is left over to go to programs for The People anymore. What would you do as a congressman if for every $4.5 Trillion you brought in from taxes, you saw $6.2 trillion being spent and were left with a $1.7 Trillion budget deficit? $870 Billion of the money spent (14%) is the interest growing on the total government debt which is at 34 Trillion now. These are all the real numbers. What would you do as a congressman whom has the power to make changes and balance the budget?
- shadowgovt 2y ago
  I don't think the story is that simple when we're talking about a country that can print the currency that be debt is demarcated in. A budget deficit means that the government has chosen not to print enough money to offset its spending. Now, the government printing its way to liquidity does have consequences, but fundamentally balancing the US federal budget is not like balancing a house budget. And because the government can print the money at any time, it really doesn't matter how fast the interest is growing. What matters is whether people keep showing up to give the government the money.

CSMastermind 2y ago

I'll take that bet. I don't even think we'll see an attempt at the federal government being fiscally responsible for another 15 years (though I do suspect things will get better in the late 2030s). Either way the US will be fine barring something stupid maneuver like embracing modern monetary theory.

wg0 2y ago

In general I mean. Governments spending more, collecting less and the difference keeps growing.