Comments by "Grim Affiliations" (@grimaffiliations3671) on "Here's who will pay for America's $35T debt" video.

no, taxpayer money doesn't pay for anything the government does
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thats what they said about all the spending in ww2, but the following generation thrived
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@Ek0 no cuts necessary
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@JohnDoe-lc9yj you can't be insolvent in a currency you create out of thing air. The national debt is just a stockpile of government IOU's, just like the dollar. Only difference is one has no interest rate and the other does. They both come from the same printer and paying for the debt is as simple as converting one of those government IOU's to another.
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The national debt is just a stockpile of government IOU's, just like the dollar. Only difference is one has no interest rate and the other does. They both come from the same printer and paying for the debt is as simple as converting one of those government IOU's to another.
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@erickanter My friend, they serviced over 120 trillion dollars worth of debt in 2021 alone. Debt servicing is not an issue, and taxes do not fund anything he government does, so there's no opportunity cost to the governments debt servicing that could inhibit growth. In fact, it's usually when the government stops adding to the debt that we start having growth problems, because the government no longer running deficits would just end up pushing those deficits onto the private sector. And as history tells us, the private sector cannot sustain deficits for long. Also it doesnt matter what treasury buyers demand, the fed sets interest rates
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The national debt is just a stockpile of government IOU's, just like the dollar. Only difference is one has no interest rate and the other does. They both come from the same printer and paying for the debt is as simple as converting one of those government IOU's to another.
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the gov
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@ace9840 paying for it isnt a problem. The national debt is just a stockpile of government IOU's, just like the dollar. Only difference is one has no interest rate and the other does. They both come from the same printer and paying for the debt is as simple as converting one of those government IOU's to another.
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@ace9840 Taking bonds and exchanging them for dollars isn't inflationary, it's just an asset swap. It's like moving money between your savings account and your check in account. As for the interest, that is paid by rolling over the bonds. They simply create new bonds to pay the interest on old bonds. This process is not inflationary, they rolled over 120,000,000,000,000 worth of bonds in 2021 alone, inflation has only fallen since then. Yes, there has been many fiat regimes that have failed in the past, just like there has been gold based monetary systems that have failed. But the difference between this fiat system and pervious ones is that the US has a floating exchange rate, and has all of its debt in its own currency. No fiat system has ever failed with those 2 characteristics
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@ace9840 Disagree with what? That failed fiat systems of the past either had fixed exchange rates pegged to gold/silver or that they had debt denominated in foreign currencies? Because i'd be interested to find out about a fiat system that has failed despite not having either of those features. A loss for the fed isn't the same as a loss for a private business, it's simply a balance sheet identity. It can create new money so it doesn't face any actual solvency issues. The Fed already hands over all its profits to the treasury, so clearly it doesn't need to be in net surplus to operate. I don't know what you mean by "got it wrong again", the government didn't default in 2008. In fact it was the government who bailed out the private banks. No one's saying private debt can't be a problem, i'm saying government debt can't be a problem
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@ace9840 Right, dollars are just government debt with not interest rate. It comes from the same printer as interest bearing government debt, and the two are only convertible to one another. So to say that the government will have trouble paying the debt off doesn't make sense. Debt doesn't affect future recessions in any way. The government bailed out the banks in 08, added tonnes more debt, and still had no problem bailing out the economy again after covid. Debt for you and me isn't the same as debt for the government
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@ace9840 Like i said, even if they didn't fix it at all, private debt is a whole different ball game to public debt. The government is a currency issuer, not a user like us or any other private sector entity. Concepts like "balancing a check book" don't apply to the entity that makes our money. When the government runs a deficit, that doesn't mean they've spent more money than they have, it simply means they spent more into the economy than they taxed away. They still have the same amount of money
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learn what hyperinflation is
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The national debt is just a stockpile of government IOU's, just like the dollar. Only difference is one has no interest rate and the other does. They both come from the same printer and paying for the debt is as simple as converting one of those government IOU's to another.
1
The national debt is just a stockpile of government IOU's, just like the dollar. Only difference is one has no interest rate and the other does. They both come from the same printer and paying for the debt is as simple as converting one of those government IOU's to another.
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its only been falling while the debt has only been rising
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