Jo Jorgensen 2020 - First Female President

[leftyjace]

Here's all you need to know:

MMT is absolute bull****.

The end.

 

[idestroyedthetoilet]

Federal debt wasn't a problem in Greece, until it was a problem, and at that point there was no escaping the their crisis. I realize that the US is nothing like Greece, but it at least has to be a consideration that at some point, this will be a crisis here as well. The Fed can't control rates forever. At some point, no one is going to want to buy our bonds at these rates that are lower than inflation (I don't understand how they are selling them now.) If the fed loses control of rates, how are we going to pay interest on $25 Trillion if the only bonds we can issue are at 5%, 10%. We would be spending over a Trill a year on interest alone at 5%. Interest rates returning to historical averages (15%ish) would cause our entire tax revenue to go to paying interest on our debt.



Not sure I understand. Is a trillion dollar annual deficit not too worrisome? I think you are right that if it was a one-off year, our economy could handle it and adjust moving forward. However, we're doing it year after year after year. What politician is going to commit career suicide (for both them and their party) to eliminate the deficit (either through increased taxation or lower spending).

Thanks for your thoughts, btw. I think one of the biggest problems we have is that the average person (meaning most people) don't truly understand the how the Federal Reserve works, MMT, QE, or in general how our government intervenes with the economy and free markets. I wish more people would take the time to try and understand it.

I tried responding but keep getting an error message. Maybe i can figure it out tomorrow.

 

[idestroyedthetoilet]

Federal debt wasn't a problem in Greece, until it was a problem, and at that point there was no escaping the their crisis. I realize that the US is nothing like Greece, but it at least has to be a consideration that at some point, this will be a crisis here as well.

Greece isn't comparable because they didn't have sovereign control. They had a similar problem as Weimar.

The Fed can't control rates forever. At some point, no one is going to want to buy our bonds at these rates that are lower than inflation (I don't understand how they are selling them now.)

the fed loses control of rates, how are we going to pay interest on $25 Trillion if the only bonds we can issue are at 5%, 10%. We would be spending over a Trill a year on interest alone at 5%. Interest rates returning to historical averages (15%ish) would cause our entire tax revenue to go to paying interest on our debt.

Treasuries are largely purchased because people want a retirement consisting of more than social welfare. If you don't own a business or large swaths of land you are willing to sell at favorable prices, where are you going to park your deferred spending? Gold? You are proposing a massive shift here, millions holding $ trillions finding a viable alternative that will allow them the comfort of not working until they die. Holding debt assets is nothing more than deferring spending your excess, which in our society is measure in the medium of exchange, instead of chickens or cows. Since we dont barter, we don't worry about preserving our excess production in pickling jars. We look to park the representation of that excess, our cash, somewhere in exchange for another spending it now.

2. Debt doesn't roll over all at once. Your what if 5%, 10% doesnt happen overnight (historical average is silly to ponder IMO as modern, lower interest rates are a product of the ever increasing depth and liquidity of debt markets. They didn't gradually lower due to Federal Reserve magic, or violation of some natural law, and there is no reason for them to revert to, say, some 1842 - 1964 average). The gradual process of increasing debt rolling over at higher rates would most likely coinside with higher inflation, which means higher new tax revenue to service the new debt. If you think otherwise then explain to me the mechanisms of how something other than that happens.

Not sure I understand. Is a trillion dollar annual deficit not too worrisome? I think you are right that if it was a one-off year, our economy could handle it and adjust moving forward. However, we're doing it year after year after year. What politician is going to commit career suicide (for both them and their party) to eliminate the deficit (either through increased taxation or lower spending).

Thanks for your thoughts, btw. I think one of the biggest problems we have is that the average person (meaning most people) don't truly understand the how the Federal Reserve works, MMT, QE, or in general how our government intervenes with the economy and free markets. I wish more people would take the time to try and understand it.

I speaking on the possibility of China dumping US debt holdings, not the annual deficit.

 

[idestroyedthetoilet]

The meat of my response won't post. "Oops, something wrong blah, blah, try later". Ih well, I give up.

@Jason get this error message on mobile: "Oops! We ran into some problems. Please try again later. More error details may be in the browser console."

 

[idestroyedthetoilet]

Love that show. Except the prequal, wasn't funny and seemed like more of Netflix forcing content out the door to satisfy The Binge. Amazon did the same with The Boys Season II. Umbrella Academy II was nothing but a repeat of season 1 plot and jokes. Capitalism is ruining great cinema, as it ruined great writing by turning what would have been a trilogy into an open ended, let's see if we extend your contract for a couple more books after the sales figures come in. You could have a Friends or Simpsons here, or you might get cancelled after season 2....

Isn't this the pet peeve thread? How do the Brits get away with 8 episode seasons and PROPERLY ending shows before the audience expects them to, while they are still interesting and good, as opposed to the dry mass production garbage that virtually every US show becomes. It's art, dammit! Or was. Name one show that didn't have to recover from Season 3 and 4 doldrums...

 

[LogGrad98]

Love that show. Except the prequal, wasn't funny and seemed like more of Netflix forcing content out the door to satisfy The Binge. Amazon did the same with The Boys Season II. Umbrella Academy II was nothing but a repeat of season 1 plot and jokes. Capitalism is ruining great cinema, as it ruined great writing by turning what would have been a trilogy into an open ended, let's see if we extend your contract for a couple more books after the sales figures come in. You could have a Friends or Simpsons here, or you might get cancelled after season 2....

Isn't this the pet peeve thread? How do the Brits get away with 8 episode seasons and PROPERLY ending shows before the audience expects them to, while they are still interesting and good, as opposed to the dry mass production garbage that virtually every US show becomes. It's art, dammit! Or was. Name one show that didn't have to recover from Season 3 and 4 doldrums...

Community.