USA Debt Surges At Alarming New Rates, $400B In A Single Month

[Economy 52,844]

3 hours ago, PartySick said:

No US politician will ever be (re)elected on the promise of raising taxes and cutting the military budget tbh.

That's kind of the thin line politicians have to walk. They can chip at the debt but if they do anything to actually fix it, they lose their next election to someone who'll make it 10x worse.

So, our two choices seem to be "don't fix the problem" or "make the problem much worse"

Yeah politics is terrible. One of the downsides of democracy is political games, or failure to do what's necessary cuz it's unpopular. Not that I'm suggesting non democratic forms of government are better, but just outlining some flaws it has

 

And in a country like the US where lobbiests have so much power, a democracy runs even less smoothly

 

Ultimately the US will do nothing to fix the problem and will let it run until the system collapses.

 

It's impossible to say when. The US after all is the world's reserve currency still. Its capable therefore to attract investment (including borrowing/financing) more easily than other Nations and adds a layer of confidence to investors...

 

As such, the threshold of debt required to make the system crumble is higher than in other Countries but it's impossible to say where that limit lies. It may not be reached for several years more even at this pace

 

But mathematically it's impossible to keep a Ponzi scheme running for ever. If the US becomes obviously insolvent even it's reserve currency Status won't save them and no one will wanna lend the US anymore causing interest rates to surge which will ripple thru to banks and private lending as well... and also forcing either money printing or default both which have awful outcomes