Comments by "Mark Armage" (@markarmage3776) on "Jerome Powell and Janet Yellen warn of economic crisis if the debt ceiling isn't raised" video.
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@WolframaticAlpha America overplayed their dealt hands. In the 1940s and the 1980s, America was booming, and then you got all Bill Clintony and you fell into a trap of providing countless social services without thinking about what you're doing. You will continuously spend more than you ever capable of recoup, serving a gigantic number of overly privileged, unproductive people and you will burn.
You're not taking on debt a small amount at a time, whether the amount of debt is small or big depends on your capability of paying it back. In this current state, all debt is unrepayable, America is filled with a generation of losers, the wealth gap in America is widening faster than ever, not because the rich is "stealing", it's because the poor is so damn unproductive.
While the Japanese, due to their culture, they have maintained a stable population of productive people, sane people. People in Japan know that they have to work to get what the things they're using, so are the people in Norway, so are the people in Germany. Even the ones in England are more responsible than America. The debt doesn't matter, the question is how you're going to deal with that debt. Your population is incompetent. Your politicians are campaigning on the grounds of "social justices" and environmental protection make belief, because none of their "electorates" care or understand fiscal responsibilities. Society doesn't just progress onward automatically, in America, it has regressed backwards.
America Supremacy is almost over with this trend, you no longer produce breakthrough technology necessary for the world to put up with you, yeah, Amazon and Facebook are huge but those are not necessary technologies, those companies are big due to their large number of users, not because of their "proprietary tech", even the Chinese can create a worthy rival. And with the rising of countries gaining more profits through cooperation in services sector instead of warfare, it shall render the American Military useless. Blame yourself.
The difference between America and Japan is that the Japanese public can endure hardship. Americans not so much, the freedom to be anything in America had made the people choose to be stupid. It's still their choice, but they'll reap the consequences. It's very amusing actually.
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@WolframaticAlpha The same thing happened in America with your The Great Recession. Economic crisis that are caused by the imbalance between supply and demands, as well as bubbles always happen. But the "debt ceiling" is nothing like that. Actually, it is that, but it's much more severe, because unlike the companies in Japan who dared to cut spending and paid of their debt with real money, real labor value.
America has nothing like that, you've committed into a trap. More and more social services, with zero way of recouping the money.
In the lost decade or the Great Recession, what happened was a bubble of overvalued assets that led to too much debt being accumulated for assets that are not worth that much. However, those crises happened to companies, which led to a reduction in economic activities. This is different, in this case, America itself is a company, a company that serves the American people, for a rate of 100% continuously loosing money. America have overvalued it's own people. The American population wellbeing doesn't worth the money the government is giving them, because the American population, overwhelming majority of them do not contribute back enough.
And you can not cut the spending because it's too late, the money you've already wasted on social services to unworthy people can never be recouped. And to continue those policies shall just keep sending you into the abyss.
Normal countries have debt to pay for something that is actually solid and exchangeable, America waster their debt entirely.
Unlike a company that took on debt for a shot of gigantic revenue later. In Japan, the government took on debt to rebuild their infrastructure, which are used and paid for everyday by the Japanese people, it's a solid source of revenue. The American people have used their debt to give out free healthcare, which just waste the money entirely because once the healthcare is used, it's gone.
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@WolframaticAlpha No, pal, you're confusing stability with temporary quietness.
There has been no crash due to social spending because massive social spending has only been a thing since Lyndon B Johnson formed Medicare and Medicaid in 1965. What we are suffering now is the result of such stupid action, this is the first wave of the consequences.
Somebody tried to ride a car off a cliff to jump to the Moon, even though there's no "precedent" of that happening because nobody was dumb enough to try it, by logic, we can still see that it's a stupid and bound to fail action. This is what US social spending is like. Spending money you don't have, and are never going to have, increasing the debt not by billions or dozens of billions, but by hundreds of billions every year.
I'm not comparing the current situation to the cause of the 2008 Recession, so your entire paragraph there is useless. I'm comparing how you have reacted to the 2008 Recession, and how such reaction can never be done in this current situation.
In 2008 Recession, America bailed out the banks, so that the Banks could live and regain their lost profits by doing business off the loans.
Unfortunately for America, when America fails, their regressing population can never regain what they have wasted off. The money they've wasted is too much, it's now too late.
Cutting social spending is the only way to save money, you can't make money out of thin air, so therefore not to overspend, you have to cut your spending. Don't confuse stability with temporary quietness. In Norway, there is some sort of stability, because low population, enough productive people to cover their asses.
In America, not so much, gigantic of population, overwhelmingly unproductive people. Mandatory spending by law that makes no sense. You have temporary quietness for a while, but now it's going to burn.
There's no such thing as "pure capitalism" or "pure socialism", and that's not the argument the point is that this plan is pure stupidity. Even in a "socialist" state, you can only spend what you have. The Americans are spending what they don't have at an alarming rate without plans to ever recoup.
Norway or Japan model shall give them about 50 to 70 years before they face a "debt crisis". America shall face that crisis within the next decade or so, because as American population grows less competent, the money America committed to spend increases heavily. Like I told you, it's a trap, no country in the world dared to behave this stupidly. It's not just the social spending, it's the "reckless" social spending.
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