>> It can borrow as long as Congress raises the debt ceiling, and people loan us money. Lenders will lend until we stop paying them back, or they begin to think we won't pay them , on account of McConnell threatening the debt ceiling. I don't want to hear any deficit bullshit from you. You had your chance with the Trump tax cut, and you whiffed.
You're nuts.
1. Trump tax cuts were superb in every respect.
2. The debt ceiling is an utterly meaningless figure. It is determined by Congress, not based on the nation's ability to pay. All an increased debt ceiling does is to convey to markets that the US can borrow more money to pay interest.
3. Mostly importantly -- there are numerous upcoming instants in time that are approaching and have great potential for disruptions in the country's ability to deal with its debt. In fact, debt is easily handled until the day it isn't.
a) Interest expense. We are approaching a time when we can no longer meet the interest payments on existing debt. That is a critical point in debt markets because it means they can no longer count on us meeting our obligations if those buying debt decide it is a lousy value;
b) SS & Medicare. Both of these programs are approaching technical insolvency, and when that occurs, overnight: Both programs must be massively cut, we must borrow the money to fund both -- effectively increasing our borrowing by trillions, with no other option, we must start printing trillions annual in addition to the current load, or raise taxes massively, which is economically untenable. This is before we consider millions of new people allowed into the country at below average productivity for decades into the future. Another utterly stupid move by the Biden administration.
Just to be clear, taking that money from the wealthy doesn't begin to mitigate the shortfalls. The combined wealth of American billionaires is in the area of $1T. Won't even come close to paying for the first year's shortfall.
c) Government is scared to death of cryptocurrency with good reason. A stable bitcoin will usurp America's ability to print dollars. It will be necessary for government to try to regulate cryptos out of existence, and
d) China is outperforming America by many metrics, and America's leadership even in technologies like chip manufacturing are now lost causes.
These are the most prevalent reasons the United States cannot continue to print money at will indefinitely.
In a few years time, Biden will have totally destroyed all remnants of the healthy economy he inherited. And yes, he did. That it was depressed due to the pandemic was a temporary situation, and his willingness to say, "We're done. Go back to work" was far stronger than anything Biden will come up with. I'd like to say that Biden can do better, but he simply doesn't have the smarts -- and frankly, he never had the smarts. He was always among the biggest idiots in the congress, even before his dementia set in.
If you don't believe these things you'll just have to wait and see what happens. |
