Comments by "Grim Affiliations" (@grimaffiliations3671) on "The Plain Bagel" channel.

  1. That's not true at all, it's because they have monetary sovereignty. All their debt is in their own currency, just like the US
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  2.  @Jose04537  No it doesn't, there is no can being kicked. the "national debt" is just a stockpile of US bonds, which were only sold in the first place to control interest rates. The US debt is perfectly sustainable because all of it is denominated in the governments own currency. You'd be tanking the economy and America's word for nothing
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  3. the debt ceiling makes no sense
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  4. Exactly
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  5.  @LuciferArc1  you contradicted your own point. First you said the value backing dollars is divided every time you print money, then you said that is only the case if the gdp does not increase. Which is it? does it devalue every time you print, or only when theres no growth?
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  6. what are the consequences of the debt? A functioning government? Growth?
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  7. that makes no sense at all. Each generation consumes from it's share of productive output, the national debt has no influence on the lives of future generations. Just like the previous generation was was not influenced by the debt racked up during world war 2.
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  8. Yeah, russia had a low debt to gdp ratio in the late 90's and still defaulted, meanwhile japans' debt is twice the size of it's entire economy and it's fine. What determines whether or not you default is whether or not your debt is in your own currency. If it is, you're fine
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  9. the reserve currency has nothing to do with why the US can operate the way it does, any nation with all of it's debt in it's own currency can operate this way
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  10.  @thetapheonix  The government taxing you is doing it to create value for the currency. if you're currency isn't backed by anything, taxes become even more important
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  11.  @howardfriedman7077  The entity within the fed that conducts monetary and fiscal policy is the FOMC, which is an arm of the government. They are made up of the board of governors (which are appointed by the president, and confirmed by congress) and the presidents of the individual fed banks (which are appointed by the board of governors)
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  12. No, you cannot default on your own currency. America will be perfectly fine indefinitely
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  13. politics will be the only reason we're ever in danger of default. Our debt is perfectly sustainable
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  14. Debt does bad things to countries who take it in foreign currencies. If you're debt is in your own currency, then it cannot hurt you
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  15. depends on the elasticity of demand for their products
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  16.  @noahjones9833  No, Japan would not default. Heck they've already retired half of their national debt
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  17.  @thetapheonix  Only fake government currency is illegal, you design your own
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  18.  @thetapheonix  Of course you can, as long as you don't try to pass it off as the governments currency. Also you're "scam" label wouldn't be accurate even if it were illegal to make any kind of fake money
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  19. Raising interest rates would be terrible considering the inflation is in specific areas and isnt being caused by general overheating. It would actually worsen inflation. For example, inflation in the housing market is one of the biggest causes of current inflation, and increasing supply would really help ease that. But the construction industry is one of the most sensitive industries to rate hikes. So raise rates and you can forget about increasing supply
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  20.  @jonnyd9351  ?
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  21. ​ @LuciferArc1  So we agree whether or not spending causes inflation depends on the productive capacity of your economy?
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  22. There isnt general overheating. The inflation in the US is in specific areas and with specific causes. It's almost all in used cars, housing, food and gas. Inflation in used cars is being caused by the chip shortage. With housing its being caused by covid migration and limited supply due to zoning laws. With food it's because of the monopolies that exist in the meat industry. And with gas it's because of the oil price increase as a result of the war
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  23.  @thetapheonix  How does that make it a scam? Taxes give us price stability, and they give people a reason to go out and be productive, which is good for all of us
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  24.  @arthas640  Democrats don't throw money on corporations, they throw money on things that help every day Americans like medicaid expansion, medicare negotiated drug prices, child tax credits, paid family leave that sort of thing
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  25. No, a country can not be saved by any currency but it's own. If you use someone elses currency, you do not control it. This means the market can influence your interest rates, which is a recipe for disaster. Greece leaned this the hard way when it abandoned its currency in favor of the Euro
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  26. you address supply by building more
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  27. So? As long as you keep inflation in check the national debt doesn’t matter.
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  28. it will never come. Because pegging your currency to a commodity would wreak havoc on your economy and massively limit your ability to respond to challenges/disasters
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  29. it is risk free, you can't default on your own currency
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  30. greece messed up when it abandoned its currency to join the Euro
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  31.  @jwdory  "way out" implies we're in trouble. We're not. The national debt is just a stockpile of US treasuries so it could just as easily be called the national savings account. And it's nonsense to say the US is close to insolvency
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  32.  @anton3437  every printed dollar doesn't have interest, the fed just sells bonds equivalent to the difference between spending and taxes, and those bonds are the ones with interest. But the fed only does that to control interest rates, they could deficit spend without selling bonds if they wanted to
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  33.  @lewis123417  Simply printing money isn't enough, you have to make sure all your debt is in your own currency. That's where other countries failed
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  34. read the deficit myth by stephanie kelton to know what money is really about
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  35. Poor countries need to abandon that harmful advice of the IMF. They need to focus completely on energy and food independence. They also need to avoid the trap of borrowing in other peoples currency. Fadhel Khaboub goes into this in depth
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  36. no
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  37. australia used to have a debt ceiling too, then it realized how dumb it was and got rid of it
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  38. Because raising interest rates wont ease current inflation, it will actually make it worse. Interest rates should only be raised if their is general overheating of the economy, The Inflation we're seeing currently is only in specific sectors
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  39. No, Greece got rid of their currency and became dependent on a foreign central bank, the US issues it’s own currency
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  40.  @LuciferArc1  No one is arguing we you print infinitely, we're saying inflation isn't inherent to printing, it depends what the productive capacity of your economy is
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  41.  @LuciferArc1  it's not wrong at all, if simply spending caused inflation, we'd ave seen elevated inflation throughout the 2010, rather than struggling t ohit inflation targets. We would have seen massive inflation during world war 2 also
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  42.  @LuciferArc1  like i said, if that were true we would have seen substantial inflation during the 2010's and during the war
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  43.  @LuciferArc1  in other words you don't have an answer
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  44.  @LuciferArc1  if it always causes inflation, explain why there wasn't high inflation during the 2010's, or the war, of japan for the past few decades. Just answer the question
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  45.  @LuciferArc1  If you acknowledge that inflation was prevented during the war by carefully managing resources, you're admitting that printing doesn't inherently cause inflation, it's about the management of resources. Growth was famously slow and anemic during the recovery of the 2010's, it certainly was not enough to mask excessive inflation. And then there's Japan, a country famous for very slow growth, who've been deficit spending like crazy for decades, with the highest debt to gdp ratio in the world, and yet has never dealt with an inflation problem. In fact they've been dealing with the opposite problem for much of that time, deflation
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  46. ​ @LuciferArc1  If you can avoid inflation by managing resources, then simply printing doesn't inherently mean inflation, which is what you're suggesting. You also haven't explained why their was both anemic growth and low inflation during the 2010 and in Japan over the past few decades
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  47.  @LuciferArc1  I'm saying printing money doesn't inherently devalue money, it depends of the productive capacity of the economy. Obviously there will be inflation if you print beyond the productive capacity of your economy
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  48.  @LuciferArc1  There's no decrease in value or excessive inflation if the productive capacity and real resources are there
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  49.  @LuciferArc1  what do you mean "after the inflation"? If the productive capacity already exists, then that inflation won't manifest at all, since the counter balance is already there in the form of adequate productive capacity
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  50.  @LuciferArc1  it doesn't have to print next to nothing for there not to be inflation, just like there can be inflation even with a balanced budget
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