Blue Rate has now hit 100 per dollar

[TheDonald]

I don't think so.

1. Reducing spending is not possible. 62% of US Government spending is mandated and growing rapidly ie: Social Security. 8% is Interest which must grow, not shrink.
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2. Taxes cannot be raised enough to matter. In 2019 Washington took $3.46trillion out of a $20Trillion GDP and still had a $trillion deficit. A 33% increase in revenue would only eliminate the deficit.

3. The attitude of the American people is moving towards spending alot more, not less ie: Free healthcare, free college, give everyone $1.000/month, etc.

4. Selling assets? Yellowstone park? The Lincoln Memorial? How about selling Capitol Hill? Even better sell Washingto, D.C. to Disney and let them turn it into a theme park.

5. That leaves inflation as the only way to address the debt. Following in the footsteps of Venezuela, Argentina and the Weimar Republic.

My statement about the ways to reduce debt is taken from memory out of economics textbooks. You may disagree all you like, but short of default or money printing, there are no other ways. If you find other solutions to government debt reduction, then you should write your own textbook.

As far as reducing spending being impossible or an increase in taxes being insignificant, these are inaccurate statements. Governments reduce spending all the time. Taxes are raised to reduce debt all the time. 10 or 20 years from now, the economic and political mood will be different and the choices will be different. To say that taxes will never be raised or spending will never be lowered is like saying in 2019 that a pandemic will never strike.

For a lesson on government asset sales to reduce debt, you can read about Greece over the last 10 years or Saudi Arabia and Aramco over the last year.

Japan and many other countries have shown that inflation is not at the will of monetary authorities. To say that the US will have to inflate its way out of its debt burden is to ignore the economic fundamentals occurring across the world. Almost all developed governments are trying to increase inflation and none of them have succeeded.

 

[Weyland]

5. That leaves inflation as the only way to address the debt. Following in the footsteps of Venezuela, Argentina and the Weimar Republic.

As long as there is no viable alternative, I don't see the USD following in the footsteps of the ARS or the Bolivar. T-bills are still referred to as RF for a reason.

 

[garryl]

China is EVIL & LETHAL all in one.

They have bad motives and are in a competition for world dominance. But ask yourself this? Would you rather live in a US dominated world or a CHINESE one? Most would select the former. It offers a better quality of life and opportunity for more people around the world. And it is probably safer as well. BUT - IT WILL NEVER BE PERFECT. So don't expect that.

As someone who was born in China and grew up in China, now a citizen of US, I have to say the above is true. And it's very painful for me to see what Chinese gov has been doing. I have to point out that, Chinese communist gov does not equal China, China is a country which has been there for thousands of year, the communist just took it over for less than 70 years. And I also have to point out, in case you are not an expert to China, the current China communist leader is an idiot, he has driven the China train to a dangerous track. Most westerners have no clue what an idiot he is. If you do not like Trump and think Trump is an idiot, he is 100 times worse.

 

[EL_TIGRE_de_Tigre]

Ni hao garryl,

I have a unique perspective on China. I was in a serious, long term relationship with a person who was born in Beijing and I also have a few very good friends from there (born there) who now live in the west. I have learned so much about China and it's agenda / politics from these people. So I am not expressing a blind opinion. I am sharing accurate observation and it looks like you picked up it. You are very correct, in that the communist (since 1949) have "BORROWED / STOLEN" a great country and people and essentially sterilized them. Also, Xi is 100x worse than Trump ... HE DEFINITELY IS!

 

[on the brink]

Also, Xi is 100x worse than Trump ... HE DEFINITELY IS!

I believe you, but please explain - how can anyone be worse than Trump? Is Xi more stupid, more incompetent, or more dishonest? Or is he worse because of the kind of government China has?

To my mind, Trump is sheer trash - not even human trash, but some kind of weird subhuman thing.
So I've trouble conceiving of someone worse, let alone a hundred times worse.

So, please elaborate a bit - I've no personal knowledge of China, just what I read in the papers, and am eager to learn more.

 

[garryl]

I believe you, but please explain - how can anyone be worse than Trump? Is Xi more stupid, more incompetent, or more dishonest? Or is he worse because of the kind of government China has?

To my mind, Trump is sheer trash - not even human trash, but some kind of weird subhuman thing.
So I've trouble conceiving of someone worse, let alone a hundred times worse.

So, please elaborate a bit - I've no personal knowledge of China, just what I read in the papers, and am eager to learn more.

This is going to be an easy one: Trump only fights with CNN, Xi shuts the mouth of every Chinese. Trump only bad mouth or fires someone if he does not like him or her, Xi makes them disappear from homes and streets. Trump is not a smooth talker, Xi can not read. Trump might hide his conversation with Putin, Xi hides the cause of virus. Trump tries to please US voters, Xi does not give a damn what peasants think.

 

[EL_TIGRE_de_Tigre]

This is going to be an easy one: Trump only fights with CNN, Xi shuts the mouth of every Chinese. Trump only bad mouth or fires someone if he does not like him or her, Xi makes them disappear from homes and streets. Trump is not a smooth talker, Xi can not read. Trump might hide his conversation with Putin, Xi hides the cause of virus. Trump tries to please US voters, Xi does not give a damn what peasants think.

I could not have said it better.

XI is operating with a lot of COMMUNIST PROTECTIONS that Trump doesn't have available to him.

XI has god like powers. There is little to no contesting his actions. Near zero accountability.

 

[elgordito]

I believe you, but please explain - how can anyone be worse than Trump? Is Xi more stupid, more incompetent, or more dishonest? Or is he worse because of the kind of government China has?

To my mind, Trump is sheer trash - not even human trash, but some kind of weird subhuman thing.
So I've trouble conceiving of someone worse, let alone a hundred times worse.

So, please elaborate a bit - I've no personal knowledge of China, just what I read in the papers, and am eager to learn more.

Like garryl I'm also ethnically Chinese (but I was born and grew up in Europe) and I've been there enough times to know what's going on, I think that many westerners (I don't mean this in a discriminatory way, but especially those on the 'left' of the political spectrum in Europe) either have no real idea of what China is up to, or refuse to admit the facts for whatever reason.

I'm just gonna list the 'bad' things about the Chinese government I can think of off the top of my head:

1. There are literally concentration camps in China, go look it up. Or just google Xinjiang.

2. It's a police state - the government has near complete control over most if not all aspects of life. For example, to get a SIM card they take a photo of you and your ID and so your phone is essentially linked to your ID and if the government wants to, they can find out whatever you do. There are CCTV cameras and face-recognition tech everywhere, it's 1984 in real life.

3. Americans can vote Trump out but the Chinese can't vote the communist party out. If you criticise the party publicly that's it, you're done.

4. There are propaganda posters with Xi's stupid chubby face and Soviet-esque slogans all over the country

And I'm sure I could add hundreds more to the list....