An observation.

[Dovahkiin]

I always hear people claim that the government "CAN'T" create dollars from thin air.

It can. It does it every day.

It's good to know that you recognize this. Tell that to others.. Then you can move on to why the debt is not a problem.

LOL

You seem to think that printing more money will pay down our debt! What planet do you hail from?

How do you believe it works?
We can "print" our own currency, it's impossible to default on the debt.

 

[g5000]

We can "print" our own currency, it's impossible to default on the debt.

Ah...Christ. You're one of those.

 

[g5000]

I always hear people claim that the government "CAN'T" create dollars from thin air. This is wrong, of course, but it leads me to think about something else: The Iraq War. Did the government have any trouble coming up with the trillions needed for that war? Did we all have to "tighten our belts and kick in?" Of course not. So where did the government get the money?

They borrowed it.

Duh.

 

[g5000]

When the government spends more than it takes in, it borrows the difference.

It borrows by issuing IOUs in the form of Treasury bonds in the open market. Various entities buy the bonds. Some of the debt is bought by the Federal Reserve. Some is bought by China. Some is bought by Great Britain. Some is bought by Saudi princes and other sovereign funds. Some is bought by college endowment funds. Some is bought by hedge funds.

And so on. You get the idea.

When the Federal Reserve buys Treasury bonds, it is "monetizing the debt". It is creating money out of thin air.

But here's the part the whackjobs either don't know, or they don't tell you: When the Federal Reserve cashes in those bonds, it destroys the money it had created.

The only money they don't "burn" is the interest earned on the bonds. That money is given to the Treasury. Profit!

And that is why monetizing the debt doesn't cause inflation, boys and girls. Because the process is reversed when the Fed sells the bonds or when they mature, whichever comes first.

 

[Dovahkiin]

I always hear people claim that the government "CAN'T" create dollars from thin air. This is wrong, of course, but it leads me to think about something else: The Iraq War. Did the government have any trouble coming up with the trillions needed for that war? Did we all have to "tighten our belts and kick in?" Of course not. So where did the government get the money?

They borrowed it.

Duh.

Borrowed from who?
How the hell does the us government borrow its own currency? And again, from who?

 

[Dovahkiin]

We can "print" our own currency, it's impossible to default on the debt.

Ah...Christ. You're one of those.

Sorry that the reality is hard to deal with.
Can you cite an example of a sovereign nation using non-convertible, non-pegged, free- floating currency that has defaulted on debt denominated in their currency?

 

[g5000]

Now let's return to this naive crap:

We can "print" our own currency, it's impossible to default on the debt.

Here's the thing. Our debt is, what, $19 trillion? Give or take.

People like Dovahkiin think we can just print $19 trillion to pay off the debt without any consequences.

These rubes who claim "it's impossible to default" are ignorant of the fact there are six ways for a state to reduce its debt.

1. Grow the economy. A growing economy means increased revenues. Simple enough.

2. Internal devaluation. Keep wages low to make your production costs competitive with other countries.

3. External devaluation. Make your money lose its value. The most common way to achieve this is through inflation, but you can also depeg your currency from a fixed exchange rate and just declare its new value.

4. Renegotiate a lower interest rate with your creditors.

5. Raise taxes/cut spending.

6. Default.


A default is when you pay back less than you owe and call it good. Follow me so far?

The money we would be using to pay back our debts with the $19 trillion we printed would be worth much less than the money our debtors loaned to us.

That's a technical default.

Why is that? Because adding $19,000,000,000,000 to the money supply is some serious external devaluation.

 

[Dovahkiin]

When the government spends more than it takes in, it borrows the difference.

It borrows by issuing IOUs in the form of Treasury bonds in the open market. Various entities buy the bonds. Some of the debt is bought by the Federal Reserve. Some is bought by China. Some is bought by Great Britain. Some is bought by Saudi princes and other sovereign funds. Some is bought by college endowment funds. Some is bought by hedge funds.

And so on. You get the idea.

When the Federal Reserve buys Treasury bonds, it is "monetizing the debt". It is creating money out of thin air.

But here's the part the whackjobs either don't know, or they don't tell you: When the Federal Reserve cashes in those bonds, it destroys the money it had created.

The only money they don't "burn" is the interest earned on the bonds. That money is given to the Treasury. Profit!

And that is why monetizing the debt doesn't cause inflation, boys and girls. Because the process is reversed when the Fed sells the bonds or when they mature, whichever comes first.

"Borrows." I don't think you understand what that means.
A treasury bond is quite simply a US dollar that pays interest. Bonds aren't "loans" to the federal government. It's not "borrowing."

 

[Dovahkiin]

Now let's return to this naive crap:

We can "print" our own currency, it's impossible to default on the debt.

Here's the thing. Our debt is, what, $19 trillion? Give or take.

People like Dovahkiin think we can just print $19 trillion to pay off the debt without any consequences.

These rubes who claim "it's impossible to default" are ignorant of the fact there are six ways for a state to reduce its debt.

1. Grow the economy. A growing economy means increased revenues. Simple enough.

2. Internal devaluation. Keep wages low to make your production costs competitive with other countries.

3. External devaluation. Make your money lose its value. The most common way to achieve this is through inflation, but you can also depeg your currency from a fixed exchange rate and just declare its new value.

4. Renegotiate a lower interest rate with your creditors.

5. Raise taxes/cut spending.

6. Default.


A default is when you pack less than you owe and call it good. Follow me so far?

The money we would be using to pay back our debts with the $19 trillion we printed would be worth much less than the money our debtors loaned to us.

That's a default.

Why is that? Because adding $19,000,000,000,000 to the money supply is some serious external devaluation.

Why do you want to ever try reducing the debt?
Think big deficits cause recessions
I never said there wouldn't be consequences, I'm simply saying we can't default. We're never going to "pay off" the debt all at once anyways. Hell, that's freaking absurd.

 

[g5000]

I always hear people claim that the government "CAN'T" create dollars from thin air. This is wrong, of course, but it leads me to think about something else: The Iraq War. Did the government have any trouble coming up with the trillions needed for that war? Did we all have to "tighten our belts and kick in?" Of course not. So where did the government get the money?

They borrowed it.

Duh.

Borrowed from who?
How the hell does the us government borrow its own currency? And again, from who?

China, Japan, Great Britain, et al., sovereign funds, mutual funds, hedge funds, trust funds, endowment funds, the man in the street, and the Federal Reserve.

 

[Dovahkiin]

Now let's return to this naive crap:

We can "print" our own currency, it's impossible to default on the debt.

Here's the thing. Our debt is, what, $19 trillion? Give or take.

People like Dovahkiin think we can just print $19 trillion to pay off the debt without any consequences.

These rubes who claim "it's impossible to default" are ignorant of the fact there are six ways for a state to reduce its debt.

1. Grow the economy. A growing economy means increased revenues. Simple enough.

2. Internal devaluation. Keep wages low to make your production costs competitive with other countries.

3. External devaluation. Make your money lose its value. The most common way to achieve this is through inflation, but you can also depeg your currency from a fixed exchange rate and just declare its new value.

4. Renegotiate a lower interest rate with your creditors.

5. Raise taxes/cut spending.

6. Default.


A default is when you pay back less than you owe and call it good. Follow me so far?

The money we would be using to pay back our debts with the $19 trillion we printed would be worth much less than the money our debtors loaned to us.

That's a technical default.

Why is that? Because adding $19,000,000,000,000 to the money supply is some serious external devaluation.

You act like federal taxes actually fund things.

 

[g5000]

Now let's return to this naive crap:

We can "print" our own currency, it's impossible to default on the debt.

Here's the thing. Our debt is, what, $19 trillion? Give or take.

People like Dovahkiin think we can just print $19 trillion to pay off the debt without any consequences.

These rubes who claim "it's impossible to default" are ignorant of the fact there are six ways for a state to reduce its debt.

1. Grow the economy. A growing economy means increased revenues. Simple enough.

2. Internal devaluation. Keep wages low to make your production costs competitive with other countries.

3. External devaluation. Make your money lose its value. The most common way to achieve this is through inflation, but you can also depeg your currency from a fixed exchange rate and just declare its new value.

4. Renegotiate a lower interest rate with your creditors.

5. Raise taxes/cut spending.

6. Default.


A default is when you pack less than you owe and call it good. Follow me so far?

The money we would be using to pay back our debts with the $19 trillion we printed would be worth much less than the money our debtors loaned to us.

That's a default.

Why is that? Because adding $19,000,000,000,000 to the money supply is some serious external devaluation.

Why do you want to ever try reducing the debt?
Think big deficits cause recessions
I never said there wouldn't be consequences, I'm simply saying we can't default. We're never going to "pay off" the debt all at once anyways. Hell, that's freaking absurd.

I have started more than one topic how to reduce the debt, and I have made countless posts of same. Just ask around.

It would be extremely simple to pay down the debt. Our politicians don't have the courage to do what it takes, though.

 

[g5000]

Now let's return to this naive crap:

We can "print" our own currency, it's impossible to default on the debt.

Here's the thing. Our debt is, what, $19 trillion? Give or take.

People like Dovahkiin think we can just print $19 trillion to pay off the debt without any consequences.

These rubes who claim "it's impossible to default" are ignorant of the fact there are six ways for a state to reduce its debt.

1. Grow the economy. A growing economy means increased revenues. Simple enough.

2. Internal devaluation. Keep wages low to make your production costs competitive with other countries.

3. External devaluation. Make your money lose its value. The most common way to achieve this is through inflation, but you can also depeg your currency from a fixed exchange rate and just declare its new value.

4. Renegotiate a lower interest rate with your creditors.

5. Raise taxes/cut spending.

6. Default.


A default is when you pay back less than you owe and call it good. Follow me so far?

The money we would be using to pay back our debts with the $19 trillion we printed would be worth much less than the money our debtors loaned to us.

That's a technical default.

Why is that? Because adding $19,000,000,000,000 to the money supply is some serious external devaluation.

You act like federal taxes actually fund things.

It's not fairy dust that paid for the interstate.

 

[Dovahkiin]

I always hear people claim that the government "CAN'T" create dollars from thin air. This is wrong, of course, but it leads me to think about something else: The Iraq War. Did the government have any trouble coming up with the trillions needed for that war? Did we all have to "tighten our belts and kick in?" Of course not. So where did the government get the money?

They borrowed it.

Duh.

Borrowed from who?
How the hell does the us government borrow its own currency? And again, from who?

China, Japan, Great Britain, et al., sovereign funds, mutual funds, hedge funds, trust funds, endowment funds, the man in the street, and the Federal Reserve.

Again, you don't understand what "borrowing means."

 

[g5000]

I never said there wouldn't be consequences, I'm simply saying we can't default.

Printing $19 trillion IS a default, you goon!

 

[Dovahkiin]

Now let's return to this naive crap:

We can "print" our own currency, it's impossible to default on the debt.

Here's the thing. Our debt is, what, $19 trillion? Give or take.

People like Dovahkiin think we can just print $19 trillion to pay off the debt without any consequences.

These rubes who claim "it's impossible to default" are ignorant of the fact there are six ways for a state to reduce its debt.

1. Grow the economy. A growing economy means increased revenues. Simple enough.

2. Internal devaluation. Keep wages low to make your production costs competitive with other countries.

3. External devaluation. Make your money lose its value. The most common way to achieve this is through inflation, but you can also depeg your currency from a fixed exchange rate and just declare its new value.

4. Renegotiate a lower interest rate with your creditors.

5. Raise taxes/cut spending.

6. Default.


A default is when you pay back less than you owe and call it good. Follow me so far?

The money we would be using to pay back our debts with the $19 trillion we printed would be worth much less than the money our debtors loaned to us.

That's a technical default.

Why is that? Because adding $19,000,000,000,000 to the money supply is some serious external devaluation.

You act like federal taxes actually fund things.

It's not fairy dust that paid for the interstate.

The 70's changed that.

 

[g5000]

I always hear people claim that the government "CAN'T" create dollars from thin air. This is wrong, of course, but it leads me to think about something else: The Iraq War. Did the government have any trouble coming up with the trillions needed for that war? Did we all have to "tighten our belts and kick in?" Of course not. So where did the government get the money?

They borrowed it.

Duh.

Borrowed from who?
How the hell does the us government borrow its own currency? And again, from who?

China, Japan, Great Britain, et al., sovereign funds, mutual funds, hedge funds, trust funds, endowment funds, the man in the street, and the Federal Reserve.

Again, you don't understand what "borrowing means."

It's pretty clear you don't.

 

[g5000]

Now let's return to this naive crap:

We can "print" our own currency, it's impossible to default on the debt.

Here's the thing. Our debt is, what, $19 trillion? Give or take.

People like Dovahkiin think we can just print $19 trillion to pay off the debt without any consequences.

These rubes who claim "it's impossible to default" are ignorant of the fact there are six ways for a state to reduce its debt.

1. Grow the economy. A growing economy means increased revenues. Simple enough.

2. Internal devaluation. Keep wages low to make your production costs competitive with other countries.

3. External devaluation. Make your money lose its value. The most common way to achieve this is through inflation, but you can also depeg your currency from a fixed exchange rate and just declare its new value.

4. Renegotiate a lower interest rate with your creditors.

5. Raise taxes/cut spending.

6. Default.


A default is when you pay back less than you owe and call it good. Follow me so far?

The money we would be using to pay back our debts with the $19 trillion we printed would be worth much less than the money our debtors loaned to us.

That's a technical default.

Why is that? Because adding $19,000,000,000,000 to the money supply is some serious external devaluation.

You act like federal taxes actually fund things.

It's not fairy dust that paid for the interstate.

The 70's changed that.

Ah, you see? I KNEW you were one of those!

A gold bug.

 

[Dovahkiin]

I never said there wouldn't be consequences, I'm simply saying we can't default.

Printing $19 trillion IS a default, you goon!

Jesus, you keep pretending the debt is something to be "paid off" all at once, god, you're ignorant, and I don't blame you.
More debt is always issued and the us govt never ends up "going broke."
The national debt has been with us for.. 170 years?
You'd think we'd be seeing some real inflation right now.. nope.

 

[Dovahkiin]

Now let's return to this naive crap:

We can "print" our own currency, it's impossible to default on the debt.

Here's the thing. Our debt is, what, $19 trillion? Give or take.

People like Dovahkiin think we can just print $19 trillion to pay off the debt without any consequences.

These rubes who claim "it's impossible to default" are ignorant of the fact there are six ways for a state to reduce its debt.

1. Grow the economy. A growing economy means increased revenues. Simple enough.

2. Internal devaluation. Keep wages low to make your production costs competitive with other countries.

3. External devaluation. Make your money lose its value. The most common way to achieve this is through inflation, but you can also depeg your currency from a fixed exchange rate and just declare its new value.

4. Renegotiate a lower interest rate with your creditors.

5. Raise taxes/cut spending.

6. Default.


A default is when you pay back less than you owe and call it good. Follow me so far?

The money we would be using to pay back our debts with the $19 trillion we printed would be worth much less than the money our debtors loaned to us.

That's a technical default.

Why is that? Because adding $19,000,000,000,000 to the money supply is some serious external devaluation.

You act like federal taxes actually fund things.

It's not fairy dust that paid for the interstate.

The 70's changed that.

Ah, you see? I KNEW you were one of those!

A gold bug.

I don't enjoy gold humpers. We're a fiat regime now.