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U.S. debt will soon exceed size of entire economy

29 Comments
By PAUL WISEMAN

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29 Comments
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But, hold it, just wait a minute!

Didn't Trump say the best economy in decades?

And as the article states, it's (the debt, of course) is not just to be blamed on COVID19.

So, what is "HE" talking about?

2 ( +8 / -6 )

Trump is a moron who only reports increases, if the economy tanks 50% then goes up by 1% he claims the economy increased.

3 ( +9 / -6 )

The reaction to COVID-19 has been slow . . . when U. S. could have followed steps take by countries more successful in dealing with the pandemic - their economies are not as hurt . . .  . a saying once popular during the Great depression of the 1930s now becomes, "Brother can you spare a billion?"

2 ( +2 / -0 )

The economy tumbled into a sickening free-fall as businesses shut down and millions of Americans hunkered down at home to avoid infection.

Author Wiseman is lying. The truth is that governors and mayors shut the businesses down - few businesses shut voluntarily. Millions of Americans were ordered to hunker down, enforced by criminal penalties from those governors and mayors - most of those Americans did not do it voluntarily.

This kind of authorship intentionally avoids pinning the responsibility where it should lie - with the ones who directed the shutdowns and the in-home hunkering. I am not stating whether those steps were a good idea or not. I'm just bothered by authors passing lies that indicate these things just sort of happened for no reason or fail to attribute the responsibility - good or bad - to the initiators of the shutdowns.

-7 ( +3 / -10 )

We all know where the buck stops with this maga-sized mess. As that former Republican president who once infamously said "the constitution is just a goddamn piece of paper" would opine: "Trumpy, you're doing a heck of a job".

-1 ( +3 / -4 )

As long as productivity growth continues I think there is no problem. I read recently on the other hand that Japanese productivity per worker is falling fast and at or below that of South Korea. Productivity is key to Japan's future.

4 ( +6 / -2 )

"I love debt."

D. Trump
6 ( +9 / -3 )

U.S. debt will soon exceed size of entire economy

But yeah, let's keep the lockdowns and pay people to stay at home.

Didn't Trump say the best economy in decades?

Best economy ever until the WuFlu hit the world. That's why we had 1.37M jobs added in August despite the lockdowns in Dem sates and cities.

"I love debt." D. Trump

Yeah, and most of the current debt was accumulated by Bush Jr and Obama. Obama accumulated more debt than all presidents before him combined including Bush Jr.

-2 ( +6 / -8 )

China gonna be steamed when it realizes the trillions in treasuries it holds are only useful as tp.

4 ( +5 / -1 )

The sky was supposed to fall in twenty years ago due to Japan's larger national debt, so I guess the USA will be okay for a while yet.

It is possible to take various views on government borrowing, but anyone who compares a national economy to a household is giving you bogus economics. Don't listen to them.

6 ( +7 / -1 )

Don't worry, Biden will fix everything, lol.

8 ( +8 / -0 )

The smart thing for the US to do would be cancel all debt (bonds) that Communist China owns. Yes - trade would then cease with China 100% - but long term that is a good thing for domestic jobs and growth.

As for domestic-held debt, its not a problem (we have been through this many times in with Japan being in a similar position). The govt through the central bank can simply print more money or transfer electronic money to pay it off any time it chooses. As an issuer of its own sovereign currency, domestic debt is no issue for the US.

1 ( +3 / -2 )

Not a problem. Just as it wasn't a problem in 1945, after which the US embarked on its greatest run of prosperity in history with no fiscal or monetary repercussions.

That's simply the reality when you pay for things in a currency you issue.

3 ( +4 / -1 )

I'm not an economist - but it does seem to me that if you owe more than you are earning - there is a problem.

-1 ( +3 / -4 )

Post 1945 is not comparable to now.  Most of Europe and Russia where in ruins.  America had not had a single bomb land on their nation.  Thus they were able to be the powerhouse that regenerated the world.  that is not where we are today.  Far from it.

-2 ( +2 / -4 )

Didn't Trump say the best economy in decades?

Best economy ever until the WuFlu hit the world. That's why we had 1.37M jobs added in August despite the lockdowns in Dem sates and cities.

"I love debt." D. Trump

Yeah, and most of the current debt was accumulated by Bush Jr and Obama. Obama accumulated more debt than all presidents before him combined including Bush Jr.

Ah, serrano, there is JUST nothing that will EVER make you doubt, or criticize DEAR LEADER, is there? Why, he could shoot a bunch of liberals or Congressmen on 5th Avenue, and you would cheer him on! Thing is about this "here" economy is that you keep on stating that these jobs mean something, when in fact, they are probably hamburger flipping jobs or minimum wage jobs at Amazon. It's meaningless, especially as our trade deficit, which DEAR LEADER promised to eliminate, is wiping out manufacturing jobs and other descent jobs. And remember, Obama reduced the debt that Bush racked up from two unneeded wars, and Clinton left Bush with a surplus, which Bush eliminated.

"U.S. debt will soon exceed size of entire economy" It will soon be curtains for this old empire! Good riddance!

-1 ( +2 / -3 )

I'm not an economist - but it does seem to me that if you owe more than you are earning - there is a problem.

Not true when you owe yourself and/or can turn on the printing press.

Post 1945 is not comparable to now. Most of Europe and Russia where in ruins. America had not had a single bomb land on their nation. Thus they were able to be the powerhouse that regenerated the world. that is not where we are today. Far from it.

The US infrastructure has been neglected for a long time. Just take a ride on the NYC subway system and be taken back in time 100 years. If they invest in the US now that is money well spent. There is also a housing shortage due to failed public policy limiting new houses in many states such as California. I wouldn't be surprised if there is a building boom starting soon.

-1 ( +1 / -2 )

"U.S. debt will soon exceed size of entire economy"

Thats good. The US has done enough damage to the world.

1 ( +3 / -2 )

That country, Amerika could go 100trillion dollars in debt I could not care less.

4 ( +7 / -3 )

Just print more. It's only debts when your currency becomes toilet paper.

4 ( +4 / -0 )

If you are so worried then buy China government debt. Sleep soundly.

-1 ( +0 / -1 )

I'm not an economist - but it does seem to me that if you owe more than you are earning - there is a problem.

That theory could apply to households I guess, but not sovereign nations who can print as much money as they wish to pay off all domestic debt. Even having a $100 Trillion debt is not a problem if its domestic. Economics 101.

Foreign debt is the bad debt.

3 ( +4 / -1 )

Post 1945 is not comparable to now. 

No, indeed. Back then, the dollar had to be convertible to gold. Nowadays, it's free-floating, meaning the govt and the Fed have even greater scope to flood the economy with stimulus.

0 ( +1 / -1 )

Something very complicated is always economy and politics, mainly the Americanized system. Saying simply is to people work(elaborate) more and produce(fabricate) less, the world is very extravagant going the USA ways.

0 ( +0 / -0 )

Feel the buuuuuurrrrrrn!

0 ( +0 / -0 )

An economist once gave an interesting analogy -

"The world is dependent on US consumption for its growth. By its deepening culture of consumption, the US has habituated the world to feed on US consumption. But as the US needs money to finance its consumption, the world provides the money.

It's like a shopkeeper providing the money to a customer so that the customer keeps buying from the shop. If the customer will not buy, the shop won't have business, unless the shopkeeper funds him. The US is like the lucky customer. And the world is like the helpless shopkeeper financier."

US treasuries and sovereign bonds are not going out of fashion any time in the near future. USD will stay the world's de-facto reserve currency.

1 ( +1 / -0 )

"That theory could apply to households I guess, but not sovereign nations who can print as much money as they wish to pay off all domestic debt. Even having a $100 Trillion debt is not a problem if its domestic. Economics 101.

Foreign debt is the bad debt."

Not really. US also has a lot of foreign debt, mainly held by China and Japan. But China and Japan do not hold the debt for altruistic reasons, they hold it to keep the value of their currencies low in order to keep their exports to US competitive. Even if they sell off US debt (like China threatens to every now and then) it is not a problem if other investors foreign or domestic are eager to buy it up. It's not the holder of the debt that matters, instead of the issuer of the debt.

If any other country prints a lot of currency to pay off their debt it will lead to runaway inflation.

-1 ( +0 / -1 )

Ah, serrano, there is JUST nothing that will EVER make you doubt, or criticize DEAR LEADER, is there? 

Ah, TheRat ( tee hee! ) there is just nothing that Trump will ever do that you will ever give him credit for, is there?

And remember, Obama reduced the debt that Bush racked up from two unneeded wars

Really! Where did you pull that one from? Oh my...

George W. Bush: Added $5.849 trillion, a 101% increase from the $5.8 trillion debt at the end of Clinton's last budget, FY 2001.

Barack Obama: Added $8.588 trillion, a 74% increase from the $11.657 trillion debt at the end of Bush’s last budget, FY 2009.

https://www.thebalance.com/us-debt-by-president-by-dollar-and-percent-3306296

1 ( +1 / -0 )

But China and Japan hold the debt.... to keep the value of their currencies low in order to keep their exports to US competitive

Ah, no. they buy US Treasuries because those countries earn lots and lots of dollars in international trade and need somewhere safe and convenient to park all that $$$$, which they can't spend at home.

0 ( +0 / -0 )

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