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/biz/ - Business & Finance

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18512909 No.18512909 [Reply] [Original]

Can someone explain to a retard how a countries debt works? Such as the USA. How is it even possible to have $24 trillion in debt? To who is that even to? At what point can that debt just keep adding on before it explodes? Forever? Is it possible for it to go down?


pls no /pol/ answers

>> No.18512944

It’s to ourselves. We (the government) spends money as its printed. We then collect taxes from the people to effectively burn it, and take it out of circulation such that there is no inflation from out printing and spending. This usually works but we stopped taking the money from the rich because citizens united allowed them to buy the congress and its all over until we see violence.

>> No.18513115

>>18512909
It is owed to all bond holders. Majority of bonds are owned by the Fed. If the government cannot pay it back and the Fed monitises the debit or the government defaults the USD will implode because it becomes clear that the debit is not backed by productivity but only paper.

When you borrow you are consuming your future productivity now, and will have to reduce your consumption in the future to pay it back. At this point the productivity of people that won't be born for 10 years is being borrowed against.

>> No.18513132

>>18512909
It's only bad if it actually gets paid off. Look up the dollar milkshake theory.

>> No.18513149

>>18512909
You’re over complicating things. Liabilities are to those who credit you, doesn’t matter if you’re a broke nigger (like you) who doesn’t pay bills, or a business, or even a country.

>> No.18513167
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18513167

>>18512909
>pls no /pol/ answers
I think you know the answers

>> No.18513169

it just means our standard of living keeps ratcheting down

no big deal, debts not real ammirite?

>> No.18513173

In the words of Alan Greenspan, national debt is irrelevant because
"The United States can pay any debt it has because we can always print money to do that"

So don't worry about it gentile.

>> No.18513177

>>18513115
Why do bonds exist than? How can the government default? What would an implosion of the dollar look like?

>> No.18513232

>>18513177
>What would an implosion of the dollar look like?

A nuclear blast over DC

>> No.18513237

>>18513177
>Why do bonds exist than?
You need someone to buy your bonds so you can be indebted to them.
>How can the government default?
If they fail to pay back the debit they default on it, just like everyone else.
>What would an implosion of the dollar look like?
Niggers in the streets rioting because their gibs are no longer worth anything, retired people would have their savings whipped out and would be dependent on their children, you'd likely see a gold stand come back, bitcoin would still be worthless.