What US can do with its dept? Genuine question.

[Darker45]

There are probably a hundred available approaches to it. Especially to rich, influential, and powerful countries like the US, there must be a lot of ways to confront it.

For one, just like in individuals and families, government debts could actually mean greater productivity. And I'm sure that whenever the US gives generous aids, for example, there are a team of economic experts that have already computed the benefits that would come out of it.

Moreover, there's the power of the government to impose all kinds of taxes. And then they also have the absolute power over the money printer.

[1714730189]

1714730189

[Husires]

The past cannot tell us much. The economic situation has changed dramatically since 1971, and the United States was able to place dollars in the world without a monetary cover. The United States’ debt is paid by all countries that bear the cost of this debt. Unless there is a military change or a world war, it will not survive. Any country that can replace the dollar from the throne of the best currency.
The debt of the United States is increasing because they are trying to always be the best and excel in areas such as military science, cybersecurity, energy security, and new technology in addition to patents.
All countries bear the bill for this research, and they cannot do much because they depend on the dollar.

[franky1]

all countries have debt.. the funny thing is if one country cancels the debt of another country, that other country can then equally cancel debt amount to that first country.. and if they all done it to rebalance themselves down. the numbers would be far lower for all

for instance US owes japan $1.1trillion
however japan owes the US $274Billion

so just on that statistic the US could bring debt down to $826bill instead of $1.1trillion

now lets say america has a wiggle room to increase its debt, but to do so to benefit another country
next up US owes belgium $354billion
japan owes belgium $236bill

so if belgium cancels $236bill of US
and japan cancels the $236 debt to belgium, and takes belgiums US debt and adds it to the US debt to japan.. bringing the debt US owes japan back to $1.063trill
belgium can be clear of all debt to japan and the US is still under the $1.1trill ceiling

the US can then do a similar thing in opposite direction with another country to get the US to japanese debt down again
repeat, repeat, repeat
...
but here is the thing, debt is a tool. if US has demands on say the UK, then the UK are beholden to agree to certain trade terms or other sanction details else the debt will become due so the US want other countries having US debt. so i dont see the US doing a debt cancellation program of world economics to bring all countries debts down.. yes its mathematically possible just not politically possible

[tabas]

We all know that US borrowing heavily. There are a lot of information on US debt on the Internet.

This website is what I've seen from someone before: https://www.usdebtclock.org/
It's the US' debt and it keeps on moving nonstoply.

Just to make it short, I will ask few questions:

What do you think, how this situation will be resolved?

There's no way to resolve it because with that amount of $33T, that's a lot of money and will continue to grow with the interest.

What did happen to any other nations who had huge dept in history?

All if not, the majority of the countries have huge debt and there's even this meme that I have seen before about where on Earth these countries are indebted. But most of the countries that have huge debt are having hard time because instead of that money will go into their country's budget for many projects for their people, they have to pay it which is an obligation that will time until it gets paid in full.

Is there any ways offered by economists to resolve the situation?

There can be ways but it's all just like blah blah blah words from them where in fact that there's no way to solve it unless every rich folks in that country contributes and pay for that government debt which is impossible to happen.

[sana54210]

Just to make it short, I will ask few questions:

What do you think, how this situation will be resolved?

There's no way to resolve it because with that amount of $33T, that's a lot of money and will continue to grow with the interest.

I feel like that's becoming the norm and there is really nothing that anyone even wants to do about it. That is why it is not getting taken care of right now, I feel like people are just trying to do whatever they possibly could do and saw that nothing changes so they are basically just letting it be. And that's a normal thing, I am not sure if it will ever get solved, it is just going to grow more and more, one day soon it will be 40 ,then 50, then one day it will be 100. So, we just need to let it be, and not worry about it.

What can we personally even do? Not like there is anything we can do, I mean not about USA debt, I mean our own national debt, all of our nations have some debt, surely not as high as the USA one but still all of our own nations have it, and we need to reconsider what we can do about it as well. I get that it may not be all that simple and such, but we still can't do anything about it and we just have to watch it grow at this point, we all gave up.

[South Park]

There are probably a hundred available approaches to it. Especially to rich, influential, and powerful countries like the US, there must be a lot of ways to confront it.

For one, just like in individuals and families, government debts could actually mean greater productivity. And I'm sure that whenever the US gives generous aids, for example, there are a team of economic experts that have already computed the benefits that would come out of it.

Moreover, there's the power of the government to impose all kinds of taxes. And then they also have the absolute power over the money printer.

Without a doubt there should be a lot of mechanisms for the US to reduce its debts all around the world, what is interesting is that they are not doing anything and instead the US is just increasing its debt ceiling, by this alone I can conclude that somehow the US debt is useful in some way or form, I am not so sure why this is the case as I am not an expert on the topic, but this makes sense, as otherwise the only other explanation that could explain why this does not happen is that the politicians in control of the US government do not know what they are doing.

[Unbunplease]

Without a doubt there should be a lot of mechanisms for the US to reduce its debts all around the world, what is interesting is that they are not doing anything and instead the US is just increasing its debt ceiling, by this alone I can conclude that somehow the US debt is useful in some way or form, I am not so sure why this is the case as I am not an expert on the topic, but this makes sense, as otherwise the only other explanation that could explain why this does not happen is that the politicians in control of the US government do not know what they are doing.

The US has complete confidence in itself. They show that they don't care if they have debt or not. The main thing is that they still control the situation. And debt is a purely economic quantity that can be easily manipulated (the debt ceiling can be raised indefinitely).

[adaseb]

First thing they need to do is start to  cut down on their debt. They are making the hole more difficult to get out of. And since interest rates are high they are paying higher interest on their own debt.

Next thing they need to do is get more tax revenue, and I am not talking about blue collar workers I am talking about all the millionaires and billionaires which barely pay any taxes. There are way too many loopholes and they need to be plugged.

Another is they need to start to develop more. Find maybe another useable energy source instead of relying on foreign oil. Make more products in USA instead of overseas. It'll be tough but they can find ways to reduce it. Or at least temporarily prevent it from rising further.

[Yogee]

First thing they need to do is start to  cut down on their debt.

This is probably not going to happen soon with the proxy wars they've been fighting.

They continue to send funds to Ukraine as they battle Russia and it seems a lot of that money is coming from China. If that's true then it's funny how they're borrowing from one perceived enemy (China) to fight another (Russia). This could be just a rumor but there are some articles that says Biden approved $8 Billion military aid to Israel after the recent attack from Hamas.

[bluebit25]

What do you think, how this situation will be resolved? What did happen to any other nations who had huge dept in history? Is there any ways offered by economists to resolve the situation?

Suddenly I started thinking about the issue of war from this question and what is happening in many areas, development or competition, economic war between leading countries to prove their position. Most countries have mutual debt, and they could use stricter fiscal policies, such as strengthening budget controls, improving public debt management and building a fair tax system.  As is clear it is a lengthy process and depends on many factors, including political, economic and society.

[pooya87]

My country is in huge dept especially after they took several loans form other countries that includes China,

There is a huge difference between foreign debt and national debt. What your country (and a lot of others have) is foreign debt which is where they borrow money from elsewhere.
The national debt which is what US is suffering from is where you print more money than you should by practically borrowing money from every single citizen creating inflation. Another way to look at it is the government spending more money than they actually have. This is a simplification but I hope you get the difference.

What's gonna happen depends on how dedollarisation goes. You see unlike other countries and other fiats, when US prints money and creates debt, they export that inflation to others. But as more countries dump more dollars, this inflation goes back to United States.
So a period of very high inflation and shrinking economy and even recession is on the horizon.

[slapper]

My country is in huge dept especially after they took several loans form other countries that includes China,

There is a huge difference between foreign debt and national debt. What your country (and a lot of others have) is foreign debt which is where they borrow money from elsewhere.
The national debt which is what US is suffering from is where you print more money than you should by practically borrowing money from every single citizen creating inflation. Another way to look at it is the government spending more money than they actually have. This is a simplification but I hope you get the difference.

What's gonna happen depends on how dedollarisation goes. You see unlike other countries and other fiats, when US prints money and creates debt, they export that inflation to others. But as more countries dump more dollars, this inflation goes back to United States.
So a period of very high inflation and shrinking economy and even recession is on the horizon.

The US producing money, accumulating debt, and exporting inflation is significant, right? As the world's reserve currency, the dollar has long been unique to the US. What happens when more nations abandon the dollar? As you noted, exported inflation could return to the US, raising prices and possibly causing a recession. A tricky balance, right? Managing the economic effects of such transformations demands a strong and flexible economic strategy. How will the US and others handle global economic changes? Only time and policy will tell.

[nara1892]

We all know that US borrowing heavily. There are a lot of information on US debt on the Internet. Just to make it short, I will ask few questions:

What do you think, how this situation will be resolved? What did happen to any other nations who had huge dept in history? Is there any ways offered by economists to resolve the situation?

Print more money and that's what America does. They will do anything even if the impact puts other countries on the verge of collapse. No situation can be resolved as long as the Dollar is still wind, and nothing can support it. Therefore, other countries are starting to appear bored with the current dollar system, and this has also become one of the grounds for the emergence of several other alternatives. The BRICS are trying to kick their dollar addiction while still paying their debt to the US. We also need to do that by continuing to preach that Bitcoin is the only asset source capable of fighting reverse inflation. This will also motivate Bitcoin-friendly countries to have future financial options.

[posi]

What do you think, how this situation will be resolved? What did happen to any other nations who had huge dept in history? Is there any ways offered by economists to resolve the situation?

If you mean only the United States, then I think the question is easy to answer because the United States is one of the few countries capable of exporting its debts outside its borders, since it is capable of provoking conflicts and wars in order to sell more weapons and thus obtain more resources for repayment. At the same time, if America wanted to collect its debts around the world to pay its dues, it would certainly create economic chaos that would threaten the stability of countries.
If you mean any other country, this depends on the amount of debt it has and who the creditors are. All countries of the world have debts, but there is something similar to a general state of stability.

Like what we are going through, crisis, war, inflation... and the US government is exporting inflation to the world. They are in the position of the world's largest creditor, not a debtor like many other countries. The US government debt rises to record highs every year, but that is only in theory and in reality they are the owners of the world's money printing machine, the Fed and the USD. So to say they will default, that's really unlikely. Unless the USD weakens and is replaced by another currency, the US economy will risk collapsing.

[kryptqnick]

There's an article about what the US could do about its debt on Investopedia, I think it's pretty interesting. Aside from setting high taxes, it discusses various over ideas, such as opening borders ('cause immigrants start businesses at twice the rate of US citizens + it would create new demand for various goods, thus stimulating their production) and raising the age of retirement (to cut the spending and to ensure people pay for their social security longer). But most ideas revolve around changing something with taxation.

[Hispo]

The most Orthodox solution is the most obvious. The United States needs to close gap of their deficit, to get onto green numbers and stop borrowing out of control.

In order to do it, they need to either increase their income or decrease their spending. I am more in favor of increasing their income rather than cutting off social programs which thousands of people depend on.

It is about increasing production and making sure all citizens are paying their fair share.
It would also help to cut on overfunded branches, like the military

[pooya87]

The US producing money, accumulating debt, and exporting inflation is significant, right? As the world's reserve currency, the dollar has long been unique to the US. What happens when more nations abandon the dollar? As you noted, exported inflation could return to the US, raising prices and possibly causing a recession. A tricky balance, right? Managing the economic effects of such transformations demands a strong and flexible economic strategy. How will the US and others handle global economic changes? Only time and policy will tell.

Abandoning dollar is the definition of the New World Order. Each time the World Order changes, there will be a lot of "chaos" in the world. In other words it is expected in all aspects including economy, energy, food, security, etc. Many countries were already prepared for it, some got prepared for it over the past year and a handful will continue to remain unprepared.

How will they handle this significant global change?
How each country will handle it depends on the countries considering their preparedness, their people, their strengths and weaknesses, their infrastructure, most important of all their resources and their relations (which side they stand with).
For example both Pakistan and Germany have been facing an energy crisis over the past 1.5 years but the effects and how they handle things are vastly different!
India is another vastly different situation as they are transitioning into China's role as a massive "production factory" and has been setting record high economic growths despite being an energy importer too.
Iran is another example but as an energy exporter that despite being in the midst of the longest and largest cold war in history, has the most battle hardened economy and despite all this has been setting record high economic growths from 5% last year to the 7.9% from the first quarter of this year (that is Spring).

As for US itself, they too have plans to prevent hyper super-ultra inflation inside United States as the world dumps the dollar. I haven't done extensive research to fully explain it, just read some articles here and there. For example one way is the laws they have that would practically "block" the dollars from coming back to US mainland! Basically turning any dollar outside of US soil into garbage to keep the "domestic supply" low.

[Baofeng]

The most Orthodox solution is the most obvious. The United States needs to close gap of their deficit, to get onto green numbers and stop borrowing out of control.

In order to do it, they need to either increase their income or decrease their spending. I am more in favor of increasing their income rather than cutting off social programs which thousands of people depend on.

It's easier said that done though, not just US but any country that is in dire financial problems will have to borrow money somewhere else otherwise they won't survived specially coming from the worst pandemic we have seen in centuries.

It is about increasing production and making sure all citizens are paying their fair share.
It would also help to cut on overfunded branches, like the military

Of course they will have a lot of programs, they are even bailing banks right now just to have their banking system stay afloat. Taxes too will be one great program but the people are not going to like it as they likely to suffer as well with the economy on the brink of disaster.

[Hispo]

The most Orthodox solution is the most obvious. The United States needs to close gap of their deficit, to get onto green numbers and stop borrowing out of control.

In order to do it, they need to either increase their income or decrease their spending. I am more in favor of increasing their income rather than cutting off social programs which thousands of people depend on.

It's easier said that done though, not just US but any country that is in dire financial problems will have to borrow money somewhere else otherwise they won't survived specially coming from the worst pandemic we have seen in centuries.

It is about increasing production and making sure all citizens are paying their fair share.
It would also help to cut on overfunded branches, like the military

Of course they will have a lot of programs, they are even bailing banks right now just to have their banking system stay afloat. Taxes too will be one great program but the people are not going to like it as they likely to suffer as well with the economy on the brink of disaster.

Obviously it is easier to say it than doing it.
I just feel that some branches of the government in USA and over funded, while keeping others underfunded or not using the chance to do some non-essential cuts to face the deficit they have.

With the increase of immigration, I would only expect the federal and local governments to further suffer by stretching their budget, to take care of such humanitarian crisis. It is problem after problem which does not seem to be a solution for, without hurting thousands of people.

[tabas]

There's no way to resolve it because with that amount of $33T, that's a lot of money and will continue to grow with the interest.

I feel like that's becoming the norm and there is really nothing that anyone even wants to do about it. That is why it is not getting taken care of right now, I feel like people are just trying to do whatever they possibly could do and saw that nothing changes so they are basically just letting it be. And that's a normal thing, I am not sure if it will ever get solved, it is just going to grow more and more, one day soon it will be 40 ,then 50, then one day it will be 100. So, we just need to let it be, and not worry about it.

What can we personally even do? Not like there is anything we can do, I mean not about USA debt, I mean our own national debt, all of our nations have some debt, surely not as high as the USA one but still all of our own nations have it, and we need to reconsider what we can do about it as well. I get that it may not be all that simple and such, but we still can't do anything about it and we just have to watch it grow at this point, we all gave up.

It's just like a stuck thing that will last forever and as we say if death and taxes are permanent, there's another one. It's either the US' debt or any other country's debt that has been there forever and has a hard time paying it. And that's like the sad reality that everyone needs to take, that no matter what they do, no how hard we work on it and contribute to it, it's almost not moving and even adding more due to the interest. While some countries have the lowest debt, maybe these countries that have a high national debt can learn from them. But no, I don't think that will happen since most of these global leaders think that there's no other one that's better than their management.