Does anyone on Sherdog know how it actually works?
I sure as hell don't.
You mean why we seem to have infinite debt? Its not super complicated.
The government borrows at intrest rates less than the rate of inflation. Their debt "shrinks" over time just by waiting. Since the government can't die, it just waits.
As long as they can make the interest payments, the "principal" goes away on its own.
For example, ww2 put the government 260 billion in debt. At the time, paying all that off wasn't an option. Paying any significant amount wasn't an option. The government bonds were at 1.5% though. Paying that rate of 3.9 billion per year is absolutely on the table. After that, keep paying and wait.
Today, 260 billion really isn't that big of a deal. The government can wait until debt isn't a big deal through inflation.
May it be so. Just like that.This is what trashed Yugoslavia financially. Tito, unlike most dictators, understood he was mortal. So he borrowed like crazy and life was nicer than economic fundamentals would have otherwise allowed, then he died, and the bills came due. Maybe the difference is we can just tell China LOL we just nationalized all the companies & real estate you bought and aren't paying shit on the debt.
Does anyone on Sherdog know how it actually works?
I sure as hell don't.
The net worth of the US is roughly 200 trillion, even after we subtract our debts.
Well or it’s not. And money doesn’t mean anything. In that case, give us all 10k stimulus checks. Print that shit out.Republicans lost so of course the National Debt is now a major issue.
thanks Obama!!!! <-- yes the debt doubled under obama and at some point the debt is so high that the interest is so high and it is hard to pay it off. So remember that Trump was carrying all this interest from obama and also remember that the government grew under obama which makes debt go up.
Now add covid relief to that
But President Bidet will fix it all up.
The tax rate really doesn't matter if the government can just print however much money they want. In 2020, they printed something like 40x the difference in revenue from his tax cuts.Trying to defend Trump on that issue is a good way to sound clueless. Trump was really lucky in that a global economic boom started late in the year before he took office. It was a perfect time to start taking care of the budget deficit and look great by just riding the global wave, especially since he had promised to cut the debt during his campaign. However he instead actually increased the deficit significantly, during an economic boom, and used it to do things like lower the taxes for the rich which certainly didn't stimulate the economy enough to compensate, let alone to increase revenue, since they of course weren't at high enough levels to have that effect, which was pretty obvious. That's incredibly irresponsible, and self-serving in his case since he's gained so much from his own policies. This was also a systematic effect of his policies and most certainly not something that only occurred once the pandemic started.
But of course we'll always see posts like yours since so many Americans treat politics like sports.
I agree but lowering taxes also involved taxing overseas profits. The net result was a 4% increase in tax revenue. Problem is Congress and he signed budgets that outpaced that revenue increaseTrying to defend Trump on that issue is a good way to sound clueless. Trump was really lucky in that a global economic boom started late in the year before he took office. It was a perfect time to start taking care of the budget deficit and look great by just riding the global wave, especially since he had promised to cut the debt during his campaign. However he instead actually increased the deficit significantly, during an economic boom, and used it to do things like lower the taxes for the rich which certainly didn't stimulate the economy enough to compensate, let alone to increase revenue, since they of course weren't at high enough levels to have that effect, which was pretty obvious. That's incredibly irresponsible, and self-serving in his case since he's gained so much from his own policies. This was also a systematic effect of his policies and most certainly not something that only occurred once the pandemic started.
But of course we'll always see posts like yours since so many Americans treat politics like sports.
The interest payments on the debt are like two thirds of the military budget these days. That is a huge figure. Social security is also the biggest spending done by government. I think at this point about half of the US spending is spent on debt.You mean why we seem to have infinite debt? Its not super complicated.
The government borrows at intrest rates less than the rate of inflation. Their debt "shrinks" over time just by waiting. Since the government can't die, it just waits.
As long as they can make the interest payments, the "principal" goes away on its own.
For example, ww2 put the government 260 billion in debt. At the time, paying all that off wasn't an option. Paying any significant amount wasn't an option. The government bonds were at 1.5% though. Paying that rate of 3.9 billion per year is absolutely on the table. After that, keep paying and wait.
Today, 260 billion really isn't that big of a deal. The government can wait until debt isn't a big deal through inflation.