Government Debt

Vrotappel said:
They have assets to cover that debt. So 'technically' they are solvent.
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Well that and they can send a warship to any country wanting to collect that debt..... and then what?

Not to say they would but that also counts for something.

Besides it's not as if China if they wanted to collect and US said NO would do anything. US imports count for much of Chinese output. Output which keeps their masses in check.
 
I once read something to the effect that initially when the U.S. started borrowing money that they generated $10 for every dollar borrowed, but now they generate less than a dollar for every dollar borrowed.
 
diephoenix08 said:
Just looking at the US external debt is scary

$ 17,997,889,181,468.20

A guy I knew studied economics, and he said his lecturer said everybody knows that the current economy system is not working, and will collapse in time, and that everybody knows there are better systems that can be adopted, but the guys making money now does not want to let go.

And the fiat currency model is working for them, need more money, just make more money....
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the guys making the money is the US, they are literally making the money

the biggest problem with our global system at this point is that the reserve currency also happens to be the national currency of one country.

so even though the demand and supply of a reserve currency should be determined on a global level, the supply (and demand) is essentially determined by one country and it manipulates the supply of its currency for its own benefit and to the cost of the rest of the world.

given the US influence in global financial and political institutions, a reserve currency independent of a national currency is far off at this point.
 
Since the govt isn't actually providing any public services, there shouldn't be any debt at all.
 
etienne_marais said:
Strange that the 'bankrupt' currency still featured in the economic world, for example the ZAR was listed on most Bureau De Change exchange listings, even when limited to 10 currencies, now it is more of a non-currency.
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Back then the amount of gold we produced was far more important, and the economies of countries such as India and China were non-entities on a global level. Come to think of it, there was also no Euro, AND the Iron Curtain was still in place.

Point is, currency markets have changed waaaaay too much to make a 1:1 comparison like that.
 
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