ngl, I just saw a video on the Greek debt crisis and...

the cac mamba

Veteran
Bushed
Joined
May 21, 2012
Messages
102,485
Reputation
13,661
Daps
299,361
Reppin
NULL
most of these dudes just want to be able to cheerlead the far left printing a bunch of free stuff, in the moment. so they lie to themselves that the US can just do this forever :mjlol: even though it cannot. our national debt is a fukkin ponzi scheme

it's all gonna collapse on someone's grandkids :yeshrug: i give it about 80 years. but i only need about 40 :banderas:
 

hashmander

Hale End
Supporter
Joined
Jan 17, 2013
Messages
19,280
Reputation
4,645
Daps
82,373
Reppin
The Arsenal
our Debt to GDP ratio might be an issue :patrice:






US National Debt by Year

We're at about 125% debt-to-GDP...

At the same time, though, we don't owe anyone but ourselves so:manny:...

Is this a concern to anyone else?

what was the point of this thread if you were going to kill it yourself?

don't you see that as a major difference between us and greece?
 

phcitywarrior

Superstar
Supporter
Joined
Nov 19, 2016
Messages
13,423
Reputation
4,640
Daps
32,511
Reppin
Naija / DMV
The USA has extra leeway since international commerce is facilitated with the USD.

But….if that ever changes and countries see no reason to have their deposits in dollars, all that money comes back to the US and this country will have a hyper inflation problem.

And with all these digital currencies being explored, the scenario isn’t as far of as one thinks…
 

Ezra

.
Joined
Dec 4, 2014
Messages
2,265
Reputation
530
Daps
7,378
Greece made an absolutely moronic decision to give up sovereignty of their currency when joining the EU. As an aside - this is why Brexit is also moronic. They had the best of both worlds. EU membership and retained their currency.

If you want a more apt comparison to the US. Look at Japan. Their debt to GDP is something like 225%. Their ratio is astronomical, but because they dont have foriegn debt, that ratio is relatively meaningless. Much like the USA's They would die for a little inflation. But they're too dumb to realize they're heavily use consumption taxes, which suck that spending back out of the economy. L

If anyone tries to compare Greece's situation to the US or the Weimar Republic, a popular one for the liberatrian types, you can go ahead and stop paying attention to them. They dont know what they're talking about.

As long as the US has a fiat currency, and doesnt take on foreign debt (two things that will never change) the debt to gdp ratio is relatively meaningless.

Debt to GDP matters for countries that dont control their own currency, like EU members or countries that pin their currency to others like the US Dollar (many south American countries)
 

Ezra

.
Joined
Dec 4, 2014
Messages
2,265
Reputation
530
Daps
7,378
The USA has extra leeway since international commerce is facilitated with the USD.

But….if that ever changes and countries see no reason to have their deposits in dollars, all that money comes back to the US and this country will have a hyper inflation problem.

And with all these digital currencies being explored, the scenario isn’t as far of as one thinks…

The Dollar being the world's reserve currency gives them extra leverage in trade deals ect. The reason for that is the US is the world's leading consumer base. Deposits are in dollars because sales are made in dollars. If that changes, we'll have less foreign deposits because we'll have less foreign goods sold. It wont result in an influx of dollars or impact inflation.
 

phcitywarrior

Superstar
Supporter
Joined
Nov 19, 2016
Messages
13,423
Reputation
4,640
Daps
32,511
Reppin
Naija / DMV
The Dollar being the world's reserve currency gives them extra leverage in trade deals ect. The reason for that is the US is the world's leading consumer base. Deposits are in dollars because sales are made in dollars. If that changes, we'll have less foreign deposits because we'll have less foreign goods sold. It wont result in an influx of dollars or impact inflation.

Countries want to hold USD because this nation is seen as safe, strong and economically vibrant. The US has never defaulted on a payment and the consumer base is strong. However, the use of the USD is also because there are no better alternatives. If and once a better alternative comes out, then there is no business case for a foreign nation to hold USD anymore. That money will come back if countries cut their holdings dramatically.
 

Red Shield

Global Domination
Joined
Dec 17, 2013
Messages
21,404
Reputation
2,481
Daps
47,596
Reppin
.0001%
The USA has extra leeway since international commerce is facilitated with the USD.

But….if that ever changes and countries see no reason to have their deposits in dollars, all that money comes back to the US and this country will have a hyper inflation problem.

And with all these digital currencies being explored, the scenario isn’t as far of as one thinks…

Yep.


no reserve currency last forever

the day the usd loses that reserve status.. a serious war at that point.
 
Top