$9 TRILLION That’s how much US debt (bonds) will mature over the next year. Will the US gov give bond holders $9 trillion of cash? Of course, not! They will just issue new bonds… but at a higher rate now. America is broke and will never pay off its debt. Ponzi scheme will go on until it can’t.
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by wakeup2019
11 comments
Most people keep buying bonds. When the rates go down, they will buy then too. It will be OK.
Well the people who buy them in so much quantum that even the intrest and sureity that it would not go bad are enough for them
and the Fed has slack demand
Remember how few years ago Greece was on verge on bancruptcy and was having trouble renewing their debt
It is a different level beyond what should matter to general public in their day to day life
For ppl who are even deca or centi millionaires it is just a topic of speculation
1. We owe most of it to ourselves.
2. What we don’t owe to ourselves could easily be paid off by collecting the $688b/yr in unpaid taxes from the 1%.
3. We could pay that off even fast if we repealed the Bush/Trump tax cuts for the 1%, *even if we let everyone else keep their tax cuts*
4. We could pay it off ***even faster still*** if we took the savings from a Universal Healthcare program and used them to pay off the debt
5. and finally… WE DON’T WANT TO PAY IT OFF. Keeping other nations tied up in our bond market makes the US dollar stronger internationally and lets us buy cheap imports, effectively turning the rest of the world into a low cost factory for American consumers.
Find something else to worry about because our national debt ain’t it.
Oh, and because somebody’s following me around and posting weak counter arguments, here’s the response to them in advance:
1. Yes, it does negate the impact. Debt we owe ourselves isn’t debt, it’s money supply
2. That just stinks of defeatism and doomerism. Also the figure is closer to $625b. Unless you’re counting what they’re already collecting because Biden gave ’em back some of their enforcement funding.
3. There is no economic impact. Multiple studies show the Bush/Trump tax cuts were bad for the economy. It was just wealth hording used to form monopolies.
4. There is no “might”, the numbers are from the CBO and are accurate as hell. And it would be easy to raise taxes in proportion to the savings (again, if we wanted to, which we don’t)
5. Bond markets are fine. We’re just moving the bonds from China to India/SE Asia so we can start up a cold war with China. Since I’m tired of reposting the above I’m going to save it for latter and start posting it directly to my 1st post.
Why do doomer who’ve never taken a finance class in their life think they know what they are talking about?
Bonds aren’t going anywhere and you can exchange them for money and it’s a fundamental part of both private economic strength and governmental.
Government debt may become an issue – but that issue lies with the balance sheet and laws that govern it, not with the bond market(the only way the bond market would be an issue is if the government stops honoring issued bonds; which won’t happen short of some crazy new law passed by the government.).
There are still no signs of any problems, and won’t be for any time until the US dollar is not a worldwide desirable reserve currency (which would cause some unpleasant reverberations back home.)
I’ve pretty much decided that most of the fear about the national debt is just numerophobia. Debt to GDP is all that matters, and if we need to tax the fuck out of the super rich for a couple of years to bring us back into business as usual, so be it.
And that’s the glory of the federal banking system, was simply a way to transfer the money from middle/low class to the rich with no repercussions other than the small guys suffering to make it.
And possibly something bigger.
Just a heads up, OP is a Chinese shill-bot that’s been spamming the page the last few days. How’s Tiananmen Square? Taiwan isn’t China btw.
Government can issue shorter duration so they can roll over sooner to lower rates in a couple years. Fed has eased QT as well which manipulates market rates for debt. They can ease more or revert to QE increasing the Fed holdings of debt.
I’ve been hearing the debt doomsday since the 80’s. The best solution is to elect a republican as president. “Poof!” the scary debt is no longer a problem and goes away until the next democratic president is in office. Easy peazy.