Will anyone reduce the national debt?

[oldtimer28]

Please correct if I am wrong,

Since about the 50s, Keynesian economics has prevailed. That is governments increase spending to try and maximise employment.

So how long does this work for?

What politician would take the unpopular route of increasing taxes and reducing government spending?

Yet, this fiscal policy can cause hyperinflation such as Venezuela

[I'm Smart]

This thread title is the funniest thing I've read in a while. Haha, well done!

[Stanley Kobrick]

once BTC takes over as the worlds standard value of currency, worldwide debt will be erased because no one will accept our dollar anymore. similar to how venezuala doesn't even accept their own currency. we should have listed to highway years ago when he warned us of this and BTC



https://images.thequint.com/thequint%2F2020-03%2Fcf6d1ebb-8b8b-4e96-b045-f06b9c44fa8a%2Fitaly_4.jpg

https://www.snopes.com/tachyon/2019/04/gutter.jpg

[BigKobeFan]

once BTC takes over as the worlds standard value of currency, worldwide debt will be erased because no one will accept our dollar anymore. similar to how venezuala doesn't even accept their own currency. we should have listed to highway years ago when he warned us of this and BTC



https://images.thequint.com/thequint%2F2020-03%2Fcf6d1ebb-8b8b-4e96-b045-f06b9c44fa8a%2Fitaly_4.jpg

https://www.snopes.com/tachyon/2019/04/gutter.jpg

You really think the deep state would ever let bitcoin control the currency? Please. Another country would step in as the top currency before bitcoin controls

[oldtimer28]

once BTC takes over as the worlds standard value of currency, worldwide debt will be erased because no one will accept our dollar anymore. similar to how venezuala doesn't even accept their own currency. we should have listed to highway years ago when he warned us of this and BTC



https://images.thequint.com/thequint%2F2020-03%2Fcf6d1ebb-8b8b-4e96-b045-f06b9c44fa8a%2Fitaly_4.jpg

https://www.snopes.com/tachyon/2019/04/gutter.jpg
Are those real pictures. Ouch

[oldtimer28]

This thread title is the funniest thing I've read in a while. Haha, well done!

Thanks

[Objectivity]

whats the real inflation adjusted interest rate? it must be negative or close to it, it would be irrational not to borrow in these circumstances.

Anyway as long as the economic growth is larger than the interest rate for new debt you grow out of debt long term and if you started cutting down spending increasing taxes etc you will kill your economy and increase the debt as a % of gdp.
Folks in charge of monetary policy are more than aware of this and austrian quacks can keep crying in their little fringe corner.

[oldtimer28]

whats the real inflation adjusted interest rate? it must be negative or close to it, it would be irrational not to borrow in these circumstances.

Anyway as long as the economic growth is larger than the interest rate for new debt you grow out of debt long term and if you started cutting down spending increasing taxes etc you will kill your economy and increase the debt as a % of gdp.
Folks in charge of monetary policy are more than aware of this and austrian quacks can keep crying in their little fringe corner.

I am sorry but this post really shows ignorance to fiscal policy and finance principles.

Borrowing is much more complex than just the interest rate today.

[bladefd]

I am sorry but this post really shows ignorance to fiscal policy and finance principles.

Borrowing is much more complex than just the interest rate today.

Yes, it is. You also have to consider the fact that other countries have borrowed more from us than we have borrowed from them. You do realize that debts go both ways, right? We borrow money from other countries, and they borrow money from us. It goes both ways, and I believe we are still in the net positive for borrowed money.

Also, you don't look at total debt because that includes EVERYTHING, including loans we owe ourselves, such as mortgages and college loans. The amount of debt we owe other countries is much less than 28 trillion (it is something like 7 trillion).