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RE: The US Surpasses $20 Trillion In Debt As Bankruptcy and Hyperinflation Loom Closer

in #money7 years ago

The national debt isn't what people think it is. You can't think of it in the same way as personal debt. Our entire money supply is created via debt. If the US government paid off $5 trillion in debt tomorrow, the money supply would be reduced by that amount. Prices would plummet as a result. Now, maybe massive deflation sounds good to you, but it would be catastrophic to the economy, not just domestically but globally.

A $20 trillion national debt means there's $20 trillion of money for the private sector to use. Every dollar of debt paid off is a dollar sucked out of the economy. That also means that we as individuals end up taking on more debt ourselves. As public debt decreases, private debt increases, and vice versa.

I'm not saying that we should crank up the debt and aim for $50 trillion then $100 trillion, because it should reflect our GDP, which for the most part it has, but I am saying that you are peddling fear when you suggest a collapse is around the corner due to there being $20 trillion in the economy for the private sector in a country with about $20 trillion in GDP.

But hey, peddling fear like this seems to be how you make money, so why let reality stop you, right? Reality can be bad for business when you're selling snake oil.

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Debt is whats going to roll over this economy, defaults are already starting to peak, any system based on it is going to fail eventually, I would say this article is a wake up call for most, we are in the melt up, melt down is an inning away

 7 years ago (edited) Reveal Comment
how can the US state go bankrupt, when they can print unlimited money
Something unlimited is worthless i would say!

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 7 years ago  Reveal Comment
 7 years ago (edited) Reveal Comment

look at Zimbabwe, Hyper inflation, thats what happens when you turn on the printing presses. Wheel barrels of money to buy a loaf of bread. The only way to save the dollar is to back it with gold, again.