What US can do with its dept? Genuine question.

[Minecache]

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

It sounds easy but I think there are thousands of problems to solve. The government has hundreds of thousands of economists on hand but they still don't have any effective solutions, while we don't even know how their economy is working. So for us to come up with ideas to fix this, to me that makes no sense.

In my opinion, things will continue like this, debt will continue to increase every year and at some point it will become too overwhelming and will explode. And everything will be reshaped from scratch as a new world. It could be a pandemic, a third world war or any other major black swan that will reshape the world again and a new world order will be established from there.

[1714610957]

1714610957

[hyudien]

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

If you're asking about US specifically then one major step they've been doing is making money elsewhere. I'm talking about creating conflicts in other countries through interventions under the pretense of "democracy" and protecting their "national interest". They are the top arms exporters for a reason.

And what the US has not yet acknowledged is that it creates conflicts in other countries. Their war funding started on its own by using other parties, creating massively funded armed groups, and then the US came in with a new face as if they were going to be the heroes. Instead of reducing the conflict, the US actually offered assistance in the form of weapons which were no less free. Like it or not, debt becomes a solution that must be paid after all conflicts are resolved. A conspiracy that has become public knowledge. But other countries can't do anything because the situation demands them to follow US rules.

The debt is ballooning but the US can print more dollars. They say this is all for the stability of the superpowers, so don't be surprised that every country that has exploited its debt to the US will become a chain of chains.

[Fara Chan]

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?

The situation will be resolved based on an agreement from both parties before borrowing money is made or carried out by countries that need money from the US. So it seems like it would be a waste of time if we thought about that, because economists also have strategies that they will carry out through anything, including through borrowing money. This will be resolved in accordance with the initial agreement of each borrowing country because the US also has a mission to lend money to countries that need it.

[Kakmakr]

I think the US foreign affairs, should start with cost containment on decisions to fund "external" wars or to deploy US troops in foreign nations. Their primary concern should be to focus all funding on the war on debt. 

They should also hire independent private companies to audit all government tenders, because the prices for these tenders are inflated and US tax payers are paying a premium for goods and services that are rendered to the government.

They should also reduce non essential projects that are not necessary for the effective rendering of government services.   

[davis196]

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?

1.Solution number 1: The Federal Reserve keeps printing more dollars, which leads to devaluing the US dollar, which devalues the US debt.
2.Solution number 2: The USA defaults and stops paying the debt. All the creditors lose money. The financial markets crash. The economy crashes and we will be witnessing another Great Depression for 10 years or more.
I think that the US central bankers and politicians will choose solution number 1.
There's also solution number 3:The US government cuts 2 trillion dollars government costs and raises taxes in order to achieve a balanced federal budget and get rid of the budget deficit. This is close to impossible.

[so98nn]

It’s like every country is in debt and thus progression of GDP is always high for United States. Even if there is debt they still have decent amount of money to run the country, develop infrastructures, pay the pensions, run entire military operations and what not. So what is the problem here? Ideally there is none because they are seeding more money than the debt but entire focus is on the development of nation.

What they can do is, increase the fed interest rate, put more burden on the supply chain and in house developments of various products and services. I am not sure how far they will keep the debts but they do have capacity to nil it sooner but they aren’t doing it. (secrete alarms) 

[blckhawk]

Iirc, most of their debts are from the Federal Reserve or like their own bank so I don't think that it's really a big deal for them to pay it back anytime soon, they can just accumulate as much debt as they can because it's not like it's coming from other countries. I might be wrong though so I welcome any correction to what I'm saying. If I am wrong about the debt and it's a debt to other countries, US can just use their influence to pay those country not with the money but with favors, I mean a country that have US on their side is a big help especially in terms of military and foreign policy.

[harapan]

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?

This dept thing is something every nations is experiencing but how they go about it matters alots..probably they might be taking it lightly and going about their daily businesses.

This matter can be resolved if they stop being in Dept's.

The country have resources or means of recovering the money  and pay up their debts but I guess they are reluctant and watching what next will happen.its advice every developed country find a good means of paying off their debts rather than pushing it further for upcoming leaders to deal with.

[kingvirtus09]

Most of the country today is all in debt. Now that I know the US, whose debt is too big, there is no back-up of their dollar or currency, unlike other countries that are backed by gold and others that are backed by oil.

If this US can do it, it will be really deep in debt because it is debt after debt, and then they are not doing anything to reduce their debt. Then it seems that the style of the US will lend a large amount of money to a country, and then when they know they can control the country, they will attack it just to get rid of their debt, but this is just what I thought, and I'm not sure if this is the style of the US.

[pooya87]

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?

1.Solution number 1: The Federal Reserve keeps printing more dollars, which leads to devaluing the US dollar, which devalues the US debt.
2.Solution number 2: The USA defaults and stops paying the debt. All the creditors lose money. The financial markets crash. The economy crashes and we will be witnessing another Great Depression for 10 years or more.
I think that the US central bankers and politicians will choose solution number 1.
There's also solution number 3:The US government cuts 2 trillion dollars government costs and raises taxes in order to achieve a balanced federal budget and get rid of the budget deficit. This is close to impossible.

This is exactly why dedollarisation is mandatory for every nation around the world, that is if they want to survive the upcoming economic crash. The more they decouple themselves from the US economy and the US dollar the less affected they will be.

BTW they tried the solution #3 by cutting the cost from certain sectors like the healthcare, etc. but they increased the military budget and the military spending for overseas wars that not only negated that but also increased the US national debt by over a trillion dollar,... so far....

[m2017]

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?

I am sure that US will find a way to “zero out” this national debt. Probably no other “people” has such huge historical experience with public debt as the US. Economists offer “economic” ways to solve this problem, while the government US will find (or has already found and is waiting for the right moment to implement / is already implementing) an alternative. Don’t worry about them, they will easily get out of this situation, but the whole world will “disentangle” the consequences, as it was before.

[coupable]

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.

There are possible hypotheses that the debt will cause major problems for the American economy if international entities succeed in replacing the dollar with other currencies, that is, reducing its use. This will reduce the burden on those countries if America thinks about exporting its crises abroad.
The American system will never collapse because of debt because this would require the collapse of the entire global system. America knows this since it decided to violate the Brettonwood Agreement and began printing dollars without a gold backing.

[justdimin]

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.

If they are rich, why will they need to have a debt? Add in the tax and the money printer but they can't just print more money as that doesn't solve the issue, rather it can only worsen it. There are still rich people who has a debt, and they use the money to improve their business. Maybe the same approach the US are doing. Debts has a different effect to the people who has it.

Maybe it's true that they can be productive or more motivated when they see that their business is improving because of it and they also need to be productive to earn more money to be able to pay it. For others, it can cause a laziness especially if they use the money in things which are not beneficial.

[kingvirtus09]

I don't think the US can pay off what they owe because they don't seem to be doing anything to reduce their debt. You will miss them as time goes by and their debts are rising. Then their boastful dollar has no backup.

Unlike other countries where their currency is gold, surprisingly, how can the US become a strong country when there is no backup regardless of their fiat? Anyway, they just add their money to their money, is that so? Maybe the US is just recovering their money from taxes they take from their constituencies.

[Darker45]

~snip~

If they are rich, why will they need to have a debt? Add in the tax and the money printer but they can't just print more money as that doesn't solve the issue, rather it can only worsen it. There are still rich people who has a debt, and they use the money to improve their business. Maybe the same approach the US are doing. Debts has a different effect to the people who has it.

We can generalize that everybody has debts, rich and poor alike. As one's wealth grows so are his/her expenses. I think this is basically the same with countries. When a country gets rich, it can afford to do and provide a lot of things. That means its expenses also grow. It can provide quality and free education, healthcare, and so on. It can build all kinds of infrastructures. It can provide incentives to businesses and to its citizens. It can continuously upgrade its military. It can even spend much on other countries.

In other words, there's always a reason to spend more than what's earned. So, there's debt. To rich economies, add to it the fact that they are highly capable of borrowing. They can have massive amounts of debts because of their paying capacity. So, they have the luxury to borrow. But the economy isn't strong all the time. Sometimes it weakens. It fluctuates. And then there are irresponsible administrations that just squander money mindlessly. The end will always be a ballooning debt.

[dothebeats]

The United States is a power country, no matter how big the debt is they will be fine. Various smaller countries borrows money all the time, it's nothing new. Besides, what they mostly do is pay off the debt that was possibly due after 10-20 years then borrow again to use it to make more money like investments and projects. As for the situation of the United States, perhaps they will do exactly what they did during the COVID-19 pandemic-- print more money and let their currency take a bit of hit. Will it affect them? Sure, but will it cause their downfall? Certainly not. Hence, if we're talking about huge debt and just how bad it might get for a country we should discuss about developing countries instead of a power country like the United States.

[LittleBitFunny]

The United States is a power country, no matter how big the debt is they will be fine. Various smaller countries borrows money all the time, it's nothing new. Besides, what they mostly do is pay off the debt that was possibly due after 10-20 years then borrow again to use it to make more money like investments and projects. As for the situation of the United States, perhaps they will do exactly what they did during the COVID-19 pandemic-- print more money and let their currency take a bit of hit. Will it affect them? Sure, but will it cause their downfall? Certainly not. Hence, if we're talking about huge debt and just how bad it might get for a country we should discuss about developing countries instead of a power country like the United States.

They will not default even if the debt figure increases to millions and trillions of dollars because they control the world's money printing machine and they always use their enormous power to export inflation to the world. But that doesn't mean it could never happen, if their position of power were threatened and overthrown their downfall would be swift. They are not the only empire that exists in this world that never collapses, let's see how long the American empire can last. Everything has a life cycle and the American empire is no exception.

[slapper]

~snip~

If they are rich, why will they need to have a debt? Add in the tax and the money printer but they can't just print more money as that doesn't solve the issue, rather it can only worsen it. There are still rich people who has a debt, and they use the money to improve their business. Maybe the same approach the US are doing. Debts has a different effect to the people who has it.

We can generalize that everybody has debts, rich and poor alike. As one's wealth grows so are his/her expenses. I think this is basically the same with countries. When a country gets rich, it can afford to do and provide a lot of things. That means its expenses also grow. It can provide quality and free education, healthcare, and so on. It can build all kinds of infrastructures. It can provide incentives to businesses and to its citizens. It can continuously upgrade its military. It can even spend much on other countries.

In other words, there's always a reason to spend more than what's earned. So, there's debt. To rich economies, add to it the fact that they are highly capable of borrowing. They can have massive amounts of debts because of their paying capacity. So, they have the luxury to borrow. But the economy isn't strong all the time. Sometimes it weakens. It fluctuates. And then there are irresponsible administrations that just squander money mindlessly. The end will always be a ballooning debt.

Debt, debt, debt - it's a word that connects with everyone, doesn’t it? It appears to accompany everyone, rich or poor, nation or individual. You make a very compelling and, in many cases, correct point about the relationship between rising wealth and rising costs. Is it unavoidable that prosperity increases expenditure and debt?

Rich economies can borrow because they pay well. They spend, construct, give. Now, is it not risky to assume that spending more than earned is normal? Countries, especially affluent ones, can acquire large debts due to their ability to repay them. Should they always go that way?

Economies vary, and governments can waste money without planning. But shouldn't a strong economy operate with financial prudence, making sure its debts are sustainable and used to boost growth? A tricky balance, right? Balance spending, debt, and giving/wasting.

[tread93]

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?

Other nations who had huge debt in history was that they printed more til people were poor trillionaires.

Biden did have a plan to counter the Belt and Road initiative of China (BRI) but instead of building it in Europe, they should just build it from Alaska and then Canada down to Argentina. Covering the whole continent without having to cross the sea. Maybe they could even extend it to Northpole to Russia which is the new field of gas exploration.

\

You know what, I think you're onto something here. California and Colorado had their gold rush, shoot I think even North Carolina had one. Maybe its time that there be an Alaskan gold rush! They have found so much gold in AK its crazy. There are multiple shows on it, but you know it would be so cool to see a modern day gold rush. The footage and shows that would come out of that would surely hype of the industry.

[DrBeer]

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?

"The 'problem' is that the U.S. is borrowing ... from themselves
At the same time, they borrow what they themselves produce - dollars ! And the cost of production of this commodity is close to 0 So there is no problem. They can print as much as they want, and this mass of dollars will not "tear" the economy ... but will imperceptibly dissolve ... in the world economy. Therefore, this "problem" is more "indicative" than real....