/biz/ - Business & Finance

>>53032542
>This means the US government needs to find 1.6 - 2.6 trillion in immediate revenue.
>*prints money*
>Heh, nothing personnel

>>53032560
The US government doesnt print money.

They can issue government bonds to borrow money which the FED can print, but the problem is that the interest rates now are sky high so doing this would only increase their interest expenses further burning up their yearly revenue faster.

>>53032542
You are too stupid to do the arithmetic.

>>53032600
1.7 trillion omnibus was chump change

The budget can wait until we fix diversity and social change

>>53032600
>prints even more to make up the interest
>prints even more later to pay it back
Problem?

>>53032600
>but the problem is that the interest rates now are sky high so doing this would only increase their interest expenses
which is not a problem as they will just print more money to pay for the increased interest payments

>>53032620
Because they took it as a loan when interest rates were 0%.

Now they need to renew old loans as theyre running at a >1 trillion yearly deficit, so they cant payoff old loans, plus they need to make new loans at the sky high interest rates (i.e. Death loan spiral).

>>53032638
>>53032642
This would mean they just lost 10% of their yearly budget and borrow money to cover it meaning a lose of 20% of next years budget

>>53032680
>This would mean they just lost 10% of their yearly budget and borrow money to cover it meaning a lose of 20% of next years budget
So they just borrow that again next time. There's no limit to this. The dollar will absolutely eventually have an inflationary spiral because of this, but there's no such thing as a government running out of fiat money that they issue. In MMT taxation is just to control inflation.

>>53032600
the US government can do whatever the fuck they want, who do you think would stop them

>>53032707
Well there is because you have to keep taking on new debt with an exponentially increasing deficit and interest payments until interest expenses themselves alone surpas GDP and you cant borrow enough to even just pay that off for the year

>>53032680
doesnt matter
everyone who has any financial literacy knows this economy is a ponzi and nobody cares about how high the interest payments are because this system isnt sustainable anyways
So we will just keep printing away until the whole system blows up
Stop worrying about the system, worry about where you stand when it eventually blows up

>>53032725
The people who want their interest money (i.e. the FED, US Banks and investors).

>>53032739
I’m saying it’s about to blow up this coming year.

Its called a fiat death spiral and this is at least the third time we've seen it play out in recent history.
American's arrogance will be their downfall.

>>53032764
it isnt lol. printing a few more trillions is nothing we still have years of ponzinomics ahead of us

>>53032758
and what do you think the banks would do if they simply said "yeah we are not paying that shit"

>>53032736
There's nothing stopping the government borrowing or creating more than the GDP in a single year.
The only limit is concern about inflation, which will truly become a problem if the dollar starts to be used less for international trade.

>>53032788
The value of the US Dollar would instantly collapse to zero.

>>53032796
going to happen either way, they can just make up a new fiat shitcoin

>>53032764
Dollar milkshake continues to play out while poors who issued dollar debt without the benefit of the dollar printer get btfo. Jpow will panic when dxy hits 200 bc of the complete collapse of the eurodollar market. Bad debts won't be forgiven, and all of those poors will be permanently endebted to the ussa

>>53032788
>and what do you think the banks would do if they simply said "yeah we are not paying that shit"

>>53032736
The GDP is also inflating in this scenario. The value of the debt is being wiped out as long as the government can borrow money at a lower rate than inflation. That is the policy of the US government, get on the same side of the trade as them.

>>53032764
>>53032739
War with china will be the final solution to the debt problem. Or nuking saudi arabia

Oh anon... Why do you think you now have to report taxes over income earned from personal sales 600$? They aren't going after big corporations kek

I sold something yesterday and eBay is now gonna FUCK ME over it.

>>53032542
They will print it so long assets

what is to stop usa from saying its resetting the value of $1 to say 1 can of pop and pegging it as the standard and defaulting on any $ it owes in debt over that?

>poisons 80% of humanity and lets it die
>starts some wars, to distract npcs
>starts an "energy crisis", to distract npcs
>there will be nobody, who can hold government accountable for anything

I'd say, get some canned food, weapons and buy PMs.

>>53032542
simple.
>let gme finally rip
>collect trillions in tax revenue
>problem solved (for another two years or so)

>>53032600

>The US government doesnt print money.
Literally wrong. Also, they aren't the only entity that CAN print money.

#1. The US Government literally prints fiat currency and mints coinage. Both departments are part of the US Treasury.

https://www.bep.gov/

https://www.usmint.gov/

>They can issue government bonds to borrow money which the FED can print
It's not a matter of them "choosing" to issue Treasuries. The US Treasury is required to issue Treasury Securities to cover the deficit. Congress controls the tax revenue and government expenditures. The only thing the US Treasury can do, is choose whether to issue bills, notes, or bonds.

>>53032827
^ Also this.

>>53032542
>US gov
>paying its debt

>>53037879

Also, to add onto my post for people that read it. There are 4 types of money in our system.

- Fiat Currency = The physical linen/cotton notes that people use to buy things in a store. These Federal Reserve Notes are printed at the Bureau of Engraving & Printing (part of the US Treasury). They are then distributed by the Federal Reserve to commercial banks on request. (You can also include US coinage, created at the USMint in this section)

- US Treasury Securities = These are Treasury bills, notes, or bonds issued by the US Treasury to cover the deficit of the US Government. The Treasury is REQUIRED to issue these securities. Congress controls the tax revenue and expenditures of the US Government. The Treasury covers the difference.

- Bank Deposits = The deposits you have in your Checking & Savings accounts (including corporations, hedgefunds, etc.) This is actually the largest sector of money we have. Banks don't actually loan your money out when they make a loan. They create bank deposits.

The bank's assets are items that the bank owns. This includes loans, securities, and reserves. Liabilities are items that the bank owes to someone else, including deposits and bank borrowing from other institutions.

- Central Bank Reserves = The only entities that have Reserves at the Federal Reserve are commercial banks and the US Treasury.

I don't feel like typing anymore. But, I hope you learned some today.

Debt crisis and stagflation in the best case. It's crazy how no one ever comments about ballooning social security deficits.
The fed is already doing stealth QE to continue reverse repo payments. (however its way too small to be bullish yet)

The government desperately wants the fed to start money printing again, but with inflation this high they can't do it.
Likely the next narrative shift is stocks collapsing seemingly for no reason, then bulls realizing that raising interest rates isn't going to stop until something breaks. and that breaking isn't going to look pretty.
then like in 2001 & 2008 the government will start cutting rates, but only after asset prices have fallen another 20%.

>>53032542
>this means the US government needs to find 1.6-2.6 trillion in immediate revenue
lol, since when did congress care about running a balanced budget? They won't raise taxes, they'll just spend more than they take in and raise the rate of inflation. Balancing the budget is impossible now and everyone knows it, that ship sailed two decades ago. Hard default, structured default, or hyperinflation are the only ways this ends.

>>53039821
Structured default is the best case, extended and severe stagflation is realistic but also the most painful choice.

>>53038153
Appreciate you anon. It's not going without notice. Please indulge the rest of us. All I want is to learn

>>53040015

If you want a contemporary look at how the banking system works today, read this book. As long as you have some basic knowledge on economics, finance and accounting, you should be okay.

There are some typos and grammatical errors. But, it's still a great book.

Joseph Wang actually ran QE/QT at the New York Federal Reserve for 5 years.

>>53040152
>>53038153

thank you anon but my question is what the fuck to do with this knowledge? are any assets safe? gold/silver/crypto/stocks?

>>53040248

Idk. I just find it interesting. It can help you understand the macro picture better, msthe that can help you choose your assets.

>>53040433
fair enough, thanks

>>53032791

India and UAE using rupee for oil.

Malaysia, Indonesia, Singapore and Thailand have set up systems for transactions between one another in their local currencies rather than the US dollar

Taiwanese can pay with a QR code system that is linked with Japan.

Bangladesh, Kazakhstan and Laos were also stepping up negotiations with China to boost their use of the renminbi

Dollar-denominated bond sales by non-financial companies have dropped to a record low of 37 per cent of the global total in 2022. They have accounted for more than 50 per cent of debt sold in any one year on several occasions in the past decade.

Source for pic: https://www.straitstimes.com/business/suddenly-everyone-is-hunting-for-alternatives-to-the-us-dollar

>>53040739
Line four of that article: "No one is saying the greenback will be dethroned any time soon from its reign as the principal medium of exchange."

>>53032620
>until we fix diversity and social change
so uhhh you gonna get the rope for the darkies or do you wanna borrow mine

>>53040855

Of course saying that would get you labelled a conspiracy theorist right wing nazi.

No one will say that even after greenback is dethroned.

>>53040923
UAE adding a INR/USD trading pair on their oil accounts is not news, anon.
>But they're taking rupees directly!
They're not holding those rupees in their accounts, they're dumping rupees for dollars. Its just another source of dollar demand.