USA Debt
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U.S. government debt, is the amount of money owed by the United States federal government to creditors who hold U.S. Debt Instruments( Treasuries).
When the total amount of revenue collected by the U.S. Government is exceeded by the amount of money it spends (including spending on debt payments that are coming due), it issues new debt to cover the deficit.
The ultimate consequence of monetizing U.S. debt is that it expands the money supply which will tend to dilute the value of dollars already in circulation.
In recent years, the debt has soared and inflation has stayed low in part because China has been willing to accumulate reserves denominated in U.S. Dollars. Currently, China holds over $1 trillion in dollar denominated assets (of which $330 billion are U.S. Treasury notes).
In the current scheme of fiat money, the U.S. Government is free to print all the money it wants. Consequentially, the government can not technically go bankrupt and any debtor nation can just issue more money.
U.S. government debt, is the amount of money owed by the United States federal government to creditors who hold U.S. Debt Instruments( Treasuries).
When the total amount of revenue collected by the U.S. Government is exceeded by the amount of money it spends (including spending on debt payments that are coming due), it issues new debt to cover the deficit.
The ultimate consequence of monetizing U.S. debt is that it expands the money supply which will tend to dilute the value of dollars already in circulation.
In recent years, the debt has soared and inflation has stayed low in part because China has been willing to accumulate reserves denominated in U.S. Dollars. Currently, China holds over $1 trillion in dollar denominated assets (of which $330 billion are U.S. Treasury notes).
In the current scheme of fiat money, the U.S. Government is free to print all the money it wants. Consequentially, the government can not technically go bankrupt and any debtor nation can just issue more money.
Blame the Federal Reserves Banks... which aren't even owned by the Federal Government. Anytime money (notes) are needed they create money, print it out and that amount is what the country owes.
There are other factors as well.... But we're coming to the point where money is no longer a material thing, it's just an idea.
There are other factors as well.... But we're coming to the point where money is no longer a material thing, it's just an idea.
Doesn't matter because it's part of the system now. See answer to question 1.
I don't advocate reforming this system. So I really don't care if it's broken or something doesn't work like it is supposed to. That’s for the democrats, republicans, and libertarians to worry about.
May matter to some, but it doesn't seriously effect my life on any type of scale form day to day, thus I don't really care. And those it does seriously matter to, I really don't give two shits about.
I don't advocate reforming this system. So I really don't care if it's broken or something doesn't work like it is supposed to. That’s for the democrats, republicans, and libertarians to worry about.
May matter to some, but it doesn't seriously effect my life on any type of scale form day to day, thus I don't really care. And those it does seriously matter to, I really don't give two shits about.
Debt is not all bad. Much of our debt is to china which means its in THEIR interest for us to have a stable economy.
But also remember, if it comes down to it, they can default on all the notes and force the US into a severe depression and destroy the value of a dollar.
We are China's number one customer, they want stability, for now.
But also remember, if it comes down to it, they can default on all the notes and force the US into a severe depression and destroy the value of a dollar.
We are China's number one customer, they want stability, for now.