HODL! U.S. debt Alarm

[buwaytress]

Whether a huge national debt indicates a bad economic situation in the country has been always a big question for me. Look at the list of top 5 countries with the highest external debt:

Wish I could find another thread talking about interest rates and inflation, and how much money's printed by a central bank, and how it's quite closely related to GDP, spending, and debt.

Now debt alone is a terrible factor to decide if the economic situations is bad. As someone else mentions above, what you produce economically has to play an important role as well. Especially if, as most economies try to do, the idea is to borrow so you can develop and build an economy that will pay back that debt and then some.

I can think of at least 1 country without external debt (Brunei) that has been very worried about its economy for the past few years since oil price dropped. Had they borrowed money -- and invested their income from oil in sovereign funds for example, instead of lavishing their reserves -- to develop and diversify their economy, they might not be in their problem today with stagnating industries and unemployment.

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[fiulpro]

It's Trump that you are taking about.
He is bound to increase things that is destructive well guess why ?
Because the doesn't know anything about it and he doesn't even care what might happen .. to people who are involved in it.
This is the reason everyone is against the president .

[sana54210]

US will never be able to pay their debt, it is almost impossible to grasp the amount of their debt.
It is absolutely huge.

For sure there is big lobby to go in even bigger debt , to take more money not only to buy stuff from lobbyist niches but also to pay more percents to those who gives out these debts. It would be interesting to see how these interest rates are progressing over time, what are the values of their paid debt monthly and yearly. For sure there would be some interesting stuff

Never say never, all they just need the right approach to it. there might have been worst debt than that which they have overcome and I believe they will overcome this too, just might not be in the term of Trump because I don’t know if trump is a curse on then or blessing, he has his own positive side though but without a solid financial system, he his just a failure because this is what could bring down the power of America over the world.

If trump is to win the second term, he needs to do everything possible to bring this debt down rather than increasing it the more before they declare state of emergency on their economy, and I expect him to have been thinking of how they can take advantage of the new cryptocurrency to see what they can do about it.

[Betwrong]

~
I can think of at least 1 country without external debt (Brunei) that has been very worried about its economy for the past few years since oil price dropped. Had they borrowed money -- and invested their income from oil in sovereign funds for example, instead of lavishing their reserves -- to develop and diversify their economy, they might not be in their problem today with stagnating industries and unemployment.

I agree with you. Borrowing money for further development is an integral part of the modern economy. Since there is no better economic model around yet, judging about the economic situation in a country by the size of its debt is a fallacy. If only the countries with much smaller debt were prospering, but this obviously not the case.

[South Park]

US will never be able to pay their debt, it is almost impossible to grasp the amount of their debt.
It is absolutely huge.

For sure there is big lobby to go in even bigger debt , to take more money not only to buy stuff from lobbyist niches but also to pay more percents to those who gives out these debts. It would be interesting to see how these interest rates are progressing over time, what are the values of their paid debt monthly and yearly. For sure there would be some interesting stuff

Never say never, all they just need the right approach to it. there might have been worst debt than that which they have overcome and I believe they will overcome this too, just might not be in the term of Trump because I don’t know if trump is a curse on then or blessing, he has his own positive side though but without a solid financial system, he his just a failure because this is what could bring down the power of America over the world.

If trump is to win the second term, he needs to do everything possible to bring this debt down rather than increasing it the more before they declare state of emergency on their economy, and I expect him to have been thinking of how they can take advantage of the new cryptocurrency to see what they can do about it.

But he cannot do that, in fact no one can, the current system is based on borrowing money to try to accelerate the economic growth, if the US stops printing and borrowing money it will decelerate to the point that it will create a recession or even a depression around the world, there is no way to solve the problem central banks around the world have created except for the implementation of a new economic system and that only happens when the previous one has been proven to not work anymore.

[pugman]

HODL bitcoin or not, the recession that's at our necks is gonna fuck us all, and we can do literally nothing about it.

It's going to be nasty. Italy already went in to a recession last year, and looking at the same again this year. Other major economies, such as China, Germany, UK, and South Korea, have already seen a contraction in one quarter this year so far, and are therefore on the brink of a recession. There are plenty of other smaller economies in the same situation, and some other countries already in a recession. Impossible to say when it's coming, but it is, and we are all entering it in a far worse economic state than we did in 2008.

The world economy somehow got through the 2008 recession because it wasn't as massive as the concurrent one, I don't know how businesses are going to survive through the recession, or any global tragedy,economic or not. Regardless of how much money there's been put in the hands of the general economy, its safe to say that it is still not enough for 60% of the population to get through the crisis through and through.

Worse part is, I was told that a few countries are charging fines for the people who dare say that their country is going through a recession. That surely is one way to go at it.

If you prefer to fight with the latest guns than to eat, then you have a problem.

US government spending is ridiculous, and the national debt will only increase with the money being allocated as it is. The US spends more on defense than the next seven highest spending countries combined. The US alone makes up over one third of global military expenditure. Other ridiculous spending includes healthcare; between medicare, medicaid, and other health spending, the US spends around 23% of its entire budget on health. In terms of both dollars per capita and GDP, the US spends at least twice as much as most other Western nations on healthcare (and gets worse outcomes for it, but that's a whole other discussion).

Healthcare is way too important in the US, as ridiculous as it is, its a necessity, for the state that US is in, if they don't invest in their health care properly, they won't withhold for long. While the military spending isn't required as much, they could certainly allot the spending into much smarter choices, but alas that's not how things work. :"/

[1Referee]

If trump is to win the second term, he needs to do everything possible to bring this debt down rather than increasing it the more before they declare state of emergency on their economy, and I expect him to have been thinking of how they can take advantage of the new cryptocurrency to see what they can do about it.

I don't think Trump (or anyone else for that matter) can actually do anything to bring the debt down. It's already at a stage where you can calculate forward as to how much debt there is next month, next year, etc. The most they can do (realistically speaking) is to slow down the rate at which the debt is groing. The US is too far gone to actually reduce the debt. It's wishful thinking to expect that.

And no, I don't think that they have spent a second thinking about how they can benefit from crypto. Instead, they have spent their time thinking about how they can firmly regulate it.

[o_e_l_e_o]

The world economy somehow got through the 2008 recession because it wasn't as massive as the concurrent one

The world also entered the 2008 recession in much better economic state than we are entering this one. Interest rates are already at a record low; they have not recovered to any meaningful degree since being cut massively during the last recession. Therefore, they can't be cut again like they were in 2008 to encourage more borrowing and therefore more spending. Debt is skyrocketing. Household debt, government debt, national debt, all way up compared to 12 years ago. Increasing government spending to provide a stimulus (again, which already happened in 2008) will face more resistance and is likely to be smaller due to adding to the already skyrocketing debt. Add in all the new tariffs which are going to apply to huge markets, such as between US-China and between UK-EU, and we are in for a very rocky time. It's going to be bad time to be holding fiat.

Healthcare is way too important in the US, as ridiculous as it is, its a necessity, for the state that US is in, if they don't invest in their health care properly, they won't withhold for long.

It's a necessity, sure, but with some sensible healthcare reforms the US could save literally billions of dollars and still receive better care. By almost every objective measure, the US system is the most expensive, least efficient, least effective and has the worst outcomes of any western nation. The problem is there are too many people who cry "socialism" and stop listening as soon you mention healthcare reform.

[santiagomaicon]

US debt is here to stay and Trump cant change it. People are believe in the US economy