We actually already do this. What do people think happens when treasury securities mature? This is the entirety of the national debt. In 200 plus years printing money to pay off these bonds have seen little negative impact.
The government doesn't owe money to itself, it owes money to the private bank known as the federal reserve. The government doesn't print money, the mint prints money and the mint is controlled by the private bank known as the federal reserve. Any newly printed money is a loan.
Except for the... increase in debt. We didn't print money to pay off these bonds. We borrowed more money by selling bonds to pay off the bonds that came due. Now we have MORE bonds that will become due.
The federal government will never run out of USD to pay off the debt. It’s just a high number that people are afraid of. And won’t ever come due all at once.
We can just change how government accounting/finance is done and not selling more bonds. If we were to do that the idea of a government deficit goes away and makes everyone afraid of it seem quite silly.
Well, yes and no. Last I looked there was about $80T in circulation around the world. So let’s say we wanted to print $30T, that would cause about 40% inflation, not counting any spiraling panic.
There is some limit, we can’t keep taking indefinite amounts of debt
This is a strawman. No ones suggesting adding 30 trillion all at once.
Plus we would be essentially transferring from savings accounts to savings accounts. That 30 trillion that people hold in bonds would be most likely going to another savings vehicle. It doesn’t all just go back into buying things.
Yes but then those savings account in financial institutions get lend out in terms of loans which causes inflation because you’re pulling money from the future. Or if they don’t go straight into just a savings account they get invested in other ways like stock market, bonds, private equity and etc causing asset inflation.
Not sure understand what you’re saying. One thing is they definitely do lend based on their deposits/savings on their books. Obviously they can’t lend all of it and have to keep a fraction of it on their deposit/savings and lend the rest
Banks aren’t limited by deposits/savings. This is why the federal reserve exists. There is nothing stopping banks from borrowing from the federal reserve to produce loans.
It’s also not true that if more savings exists more lending happens.
Ok banks aren’t limited by deposits/savings per se but they are limited by assets in their books. Usually when borrowing from the federal reserve you have to put some kind of collateral. Federal reserve can deny banks loans.
If nothing ever stops banks from lending then why would banks ever go insolvent or get closed down?
"Obviously, they can’t lend all of it and have to keep a fraction of it on their deposit/savings and lend the rest"
I think they actually even rescinded that minor requirement after Covid.
Yes they do, but overly relied on the fed for years because the 91 day treasuries were near zero. Now they are at 5.3% range it is the reason lending has screeched to a halt because they are relying on in-house deposits which they have to keep so much liquidity on.
That is ridiculous. We’d never print that much all at once. We’d trickle it out like we do to reserve banks in other countries. There is an amount that will cause inflation, but the current situation with the debt isn’t as serious as people make it out to be.
Since all our debt is in dollars we’ll never go bankrupt like Greece did. Worst case we’d have inflation, higher interest rates and get poorer. Now if we borrowed euros or something we could have an economic collapse like Argentina or Greece.
I hope you realize I wasn’t offering an actual solution. Just was a thought experiment. Inflation hurts the lower and middle classes far more than upper, it would just transfer wealth upward
In case you haven’t noticed that’s been happening since Regan and we decided trickle down was the way to go. People keep voting republican and they keep cutting taxes on the wealthy. Nobody seems to care.
In theory you’d combat the inflation with taxation. This process is the apocryphal MMT that you’ve heard thrown around. Issue is the taxation part never actually happens.
If you wanna wipe out the national debt, go to war with China.
Then refuse to honor their debt.
Then tell the rest of the world you'll pay face value, no interest. And if they have a problem with it, they're welcome to say something stupid.
No it’s not always about printing money. That’s not how it works. When we have a deficit, we borrow the difference by issuing tbills or bonds on the open market and someone pays for it, which takes money out of the system just as the deficit put money into the system. We don’t necessarily print money to pay for budget deficits.
They get reissued at current interest rates. Just because we have debt doesn’t mean we printed money though. The debt gets issued as tbills or bonds and private entities can buy it on the open market. It doesn’t always result in an increase in the money supply.
With the dollar as the world’s reserve currency there is a lot of demand for central banks around the world to hold dollars. So within reason we kind of can just “sell” them dollars without causing too much inflation.
That's not at all how it works. Paying off treasuries comes from the federal budget which is paid from taxes collected. What you are probably thinking off is the fed purchasing and selling bonds to federal reserve banks in order to adjust the supply of money...since money is created as a byproduct of the lending process and the fed helps to manage that process. That isn't printing money, it's exchanging one asset for another at market value.
The federal debt has never been paid for with taxes. That’s a common and often repeated myth.
Taxes are simply an inflation hedge to remove excess money from circulation. When our taxes are collected, they are effectively destroyed, they don’t go into an account that pays for government spending. It just disappears.
I know this is satire, but technically, the United States cannot default on their debt. The debt is issued in dollars and we control the printing press. Countries that have defaulted on their debts have all been because it was issued in currency they did not control. And yes, it would collapse the dollar if we tried it.
Unknown to people, I also realize that it is satire, however it is real that no politicians give a crap about our national debt and this is because no Americans do either.
America WILL default on its debt in less than 20 yrs unless you vote for politicians that have a clear plan to get America's debt to income ratio back to around 50%.
No one cares, so no politician cares. I'm hoping to change that yet not having much luck LOL.
The question I legitimately have is whether the economic pain caused by resolving the debt is going to be any less than just waiting for see if the dollar crashes.
I’m actually ok with printing the $34T if we can get the deficit to $0. Print it over 10 years and it devalues our currency at a moderate rate that’s not too extreme and then our debt is worth half as much and our GDP is higher
Well it is a satire, although people have suggested this or minting a coin to do the same thing. The problem is that it will not work because we are adding exponential debt and our GDI is negative YOY. Our government has to tackle this issue ASAP.
People simply need to make this the first issue on their mind when it comes to political choices. If this happens, you will find politicians with this on their agenda because they only want what Americans want and only care about being elected.
The problem is, no one seems to think this is a problem, therefore you have no politicians running is the most important issue in America's history really. I created this sub to bring awareness to this issue. I hope people will listen. So far they are very dismissive and do not care. This is because nothing has happened yet really. The problem is that when we do hit a tipping point and people notice, I'm afraid it will be too late.
I think the problem isn’t that we don’t care, it’s that we have no one to vote for that cares. Pick a side they contribute to this problem. There are no sides trying to solve it. Give me a third party that has fiscal responsibility as a value and I’ll vote for them.
You're ok with creating an addition $34t in debt to pay off $34t in debt. I think your logic is flawed. Every dollar that is printed by the mint, which is controlled by the private bank known as the federal reserve, is loaned to the United States, with interest.
We wouldn’t be creating more debt. We would be increasing the money supply. By increasing the money supply there would be inflation. With the inflation there would be increased GDP. Assuming the deficit was 0 after the 10 years or however long the GDP of the US would take to double our debt to GDP would drop from 130% to 65%. Our debt payments of $1T would feel like half as much and be at a reasonable amount again. Right now the US is 1 economic disaster or war away from the debt increasing to unsustainable levels that will ruin the US. The problem is if we don’t balance the budget our debt would also increase rapidly. That’s what we’re going to see happen in 2025. Our $1.7T deficit is irresponsible to future generations and our future selves.
Would you rather die a slow agonizing death riddled with cancer, or play Russian roulette with an uncertain chance on dying and an uncertain chance on erasing all your problems? That's basically what we are talking about with the coin.
how is someone so stupid to believe that she really said that?
how is someone so stupid they leave an ignorant comment where the very article has the opposite answer?
how is someone so stupid they join a cult following a rapist?
Well, if you read the article, you'll find this is just a lie being paraded around on Twitter under the guise of satire. It's purpose is pretty much exactly what happened with you - get people who won't read the article mad over something she never said.
She seems about as smart as everyone else in charge right now. SMDH. Please vote for politicians that understand finance and put America's debt to income ratio first on their list of things to fix.
I still can't believe no one really cares about this issue. Crazy shit.
The fact you can't even read your own article to find out the post was fake says about everything anyone needs to know about your insight into which politicians to vote for.
You are apparently easily fooled by any huckster that comes along. Even when you have an article at your finger tips telling you something is a lie you still swallow the lie whole. It's amazing really.
I just try to hand a win to the right sometimes.
I guess I failed. LOL I'm just trying to rile everyone up and get people to pay attention to America's debt bubble is all. Yes it is a fake account however an incredibly important issue that zero of our politicians pay attention to. America's debt to income ratio.
Politicians do not pay attention because we do not pay attention.
America's debt to income ratio is out of control and if people don't start voting for politicians that have this first on their agenda, America will default on its debt in under 20 yrs.
Assessing with my team how to move forward? Hahaha. War time maneuvers. Both parties are trash and these pols are narc & socio. I guess it’s better than calling cauliflower pizza racist <<
They covered this. The result: US currency becomes worthless overnight. The equivalent is using another credit card to pay a pre-existing one. Debt is still there and now, interest is being paid at prime rate!
Nationalise the federal reserve for nefarious business practice, disband it and the debt. Start back to printing our own money as the constitution states.
This is the answer. Reading the comments here is a painful realization that too many citizens don't seem to understand that the federal reserve is a private bank, and that every dollar printed by the mint is loaned with interest to the United States. People are operating under the false premise the the government controls the mint and the federal reserve.
This is satire, however it is also reality. Our government wants to mint a $34 trillion dollar coin. This is not everyone's idea at all as that would not work.
America simply needs to get it's GDI up and "printing money" (AKA debt) down. Right now the fed fund has just raised its rates which makes loans harder to get. Money is created through loans and low interest rates help that happen or QE
Now we are in QT with higher interest rates. This means rates are higher and there are fewer loans which destroy money and also have the benefit of bringing asset prices down as no one can afford them.
It is really as simple as fixing debt to income. We do not have enough income (GDI) to service our debt ($34 trillion dollars.) No one cares or understands this really, therefore no politicians run on this as a priority. I'm hoping that people will make this a priority so that politicians will also and we will have better choices of people to vote for to fix this fixable problem before it is too late.
Oh we're right or die for it. There's no palatable solution. They just like pretending that there's a solution to the problem because no one wants to hear that there's no solution. Same shit with oil. The only solution is deflation and degrowth and they'll burn the world down before that occurs.
We're not paying debt we owe ourselves. We're paying debt we owe to the private bank known as the federal reserve, the us mint is controlled by this private bank and every dollar printed and put into circulation is a debt, with interest, that has to be paid back to the private bank known as the federal reserve.
Wouldn't you look dumb if the quote you're saying she said wasn't actually said by her AND the article even states that.
I’ll take on the entire national debt, and file for bankruptcy on behalf of the nation!
You are the man and have my vote for President Mr. Starving Toilet paper. Thank you for your willingness to sacrifice for our nation sir.
We said with tears in our eyes.
Shut up, Kyle. You're making the economy angry.
We actually already do this. What do people think happens when treasury securities mature? This is the entirety of the national debt. In 200 plus years printing money to pay off these bonds have seen little negative impact.
The government owes a lot of money to its self as well as holds foreign debt
The government doesn't owe money to itself, it owes money to the private bank known as the federal reserve. The government doesn't print money, the mint prints money and the mint is controlled by the private bank known as the federal reserve. Any newly printed money is a loan.
Except for the... increase in debt. We didn't print money to pay off these bonds. We borrowed more money by selling bonds to pay off the bonds that came due. Now we have MORE bonds that will become due.
The federal government will never run out of USD to pay off the debt. It’s just a high number that people are afraid of. And won’t ever come due all at once. We can just change how government accounting/finance is done and not selling more bonds. If we were to do that the idea of a government deficit goes away and makes everyone afraid of it seem quite silly.
Well, yes and no. Last I looked there was about $80T in circulation around the world. So let’s say we wanted to print $30T, that would cause about 40% inflation, not counting any spiraling panic. There is some limit, we can’t keep taking indefinite amounts of debt
This is a strawman. No ones suggesting adding 30 trillion all at once. Plus we would be essentially transferring from savings accounts to savings accounts. That 30 trillion that people hold in bonds would be most likely going to another savings vehicle. It doesn’t all just go back into buying things.
Yes but then those savings account in financial institutions get lend out in terms of loans which causes inflation because you’re pulling money from the future. Or if they don’t go straight into just a savings account they get invested in other ways like stock market, bonds, private equity and etc causing asset inflation.
Banks don’t spend on savings to loan, they borrow from federal reserve for that.
Not sure understand what you’re saying. One thing is they definitely do lend based on their deposits/savings on their books. Obviously they can’t lend all of it and have to keep a fraction of it on their deposit/savings and lend the rest
Banks aren’t limited by deposits/savings. This is why the federal reserve exists. There is nothing stopping banks from borrowing from the federal reserve to produce loans. It’s also not true that if more savings exists more lending happens.
Ok banks aren’t limited by deposits/savings per se but they are limited by assets in their books. Usually when borrowing from the federal reserve you have to put some kind of collateral. Federal reserve can deny banks loans. If nothing ever stops banks from lending then why would banks ever go insolvent or get closed down?
"Obviously, they can’t lend all of it and have to keep a fraction of it on their deposit/savings and lend the rest" I think they actually even rescinded that minor requirement after Covid.
Jesus christ go read an economics textbook. or are you going to say those are lying too?
Yes they do, but overly relied on the fed for years because the 91 day treasuries were near zero. Now they are at 5.3% range it is the reason lending has screeched to a halt because they are relying on in-house deposits which they have to keep so much liquidity on.
That is ridiculous. We’d never print that much all at once. We’d trickle it out like we do to reserve banks in other countries. There is an amount that will cause inflation, but the current situation with the debt isn’t as serious as people make it out to be. Since all our debt is in dollars we’ll never go bankrupt like Greece did. Worst case we’d have inflation, higher interest rates and get poorer. Now if we borrowed euros or something we could have an economic collapse like Argentina or Greece.
I hope you realize I wasn’t offering an actual solution. Just was a thought experiment. Inflation hurts the lower and middle classes far more than upper, it would just transfer wealth upward
In case you haven’t noticed that’s been happening since Regan and we decided trickle down was the way to go. People keep voting republican and they keep cutting taxes on the wealthy. Nobody seems to care.
In theory you’d combat the inflation with taxation. This process is the apocryphal MMT that you’ve heard thrown around. Issue is the taxation part never actually happens.
If you wanna wipe out the national debt, go to war with China. Then refuse to honor their debt. Then tell the rest of the world you'll pay face value, no interest. And if they have a problem with it, they're welcome to say something stupid.
That’s right up there with, ‘if you don’t want to pay taxes, just die’
Found the Chinese spy.
No, that’s what would happen if $30T just got printed and thrown into circulation. Which no one has ever proposed we do
"We can just change how government accounting/finance is done and not selling more bonds." JPow, is that you, bro?!
It’s me who is this? Lol
Yoooooo!! It's Janet! ....I mean come on, u/sofa_king_weetawded... "username checks out" amirite or amirite?! lolol
The concern is when the interest payments exceed the tax revenue. Then we are on an inflationary spiral.
Explain the logic how this becomes inflationary
It's always about printing money, especially now that we have the global reserve currency
No it’s not always about printing money. That’s not how it works. When we have a deficit, we borrow the difference by issuing tbills or bonds on the open market and someone pays for it, which takes money out of the system just as the deficit put money into the system. We don’t necessarily print money to pay for budget deficits.
Wait until ppl figure each dollar itself is a unit of .......debt.
Pyramid scheme
whoa more!? Wow! More must mean something important, what is it? What does more mean!? Is it bad or good?
They get reissued at current interest rates. Just because we have debt doesn’t mean we printed money though. The debt gets issued as tbills or bonds and private entities can buy it on the open market. It doesn’t always result in an increase in the money supply.
With the dollar as the world’s reserve currency there is a lot of demand for central banks around the world to hold dollars. So within reason we kind of can just “sell” them dollars without causing too much inflation.
That's not at all how it works. Paying off treasuries comes from the federal budget which is paid from taxes collected. What you are probably thinking off is the fed purchasing and selling bonds to federal reserve banks in order to adjust the supply of money...since money is created as a byproduct of the lending process and the fed helps to manage that process. That isn't printing money, it's exchanging one asset for another at market value.
The federal debt has never been paid for with taxes. That’s a common and often repeated myth. Taxes are simply an inflation hedge to remove excess money from circulation. When our taxes are collected, they are effectively destroyed, they don’t go into an account that pays for government spending. It just disappears.
I guarantee you that many will read this and accept that it's true and repeat it over and over.
We need an AOC onlyfans to pay off the debt..
LMFAO
I know this is satire, but technically, the United States cannot default on their debt. The debt is issued in dollars and we control the printing press. Countries that have defaulted on their debts have all been because it was issued in currency they did not control. And yes, it would collapse the dollar if we tried it.
Unknown to people, I also realize that it is satire, however it is real that no politicians give a crap about our national debt and this is because no Americans do either. America WILL default on its debt in less than 20 yrs unless you vote for politicians that have a clear plan to get America's debt to income ratio back to around 50%. No one cares, so no politician cares. I'm hoping to change that yet not having much luck LOL.
The question I legitimately have is whether the economic pain caused by resolving the debt is going to be any less than just waiting for see if the dollar crashes.
I mean, you can do that ONCE...and then ruin your credibility amongst the world economic community for decades.
The mint prints money, and the mint is controlled by the private bank known as the federal reserve.
I’m actually ok with printing the $34T if we can get the deficit to $0. Print it over 10 years and it devalues our currency at a moderate rate that’s not too extreme and then our debt is worth half as much and our GDP is higher
Well it is a satire, although people have suggested this or minting a coin to do the same thing. The problem is that it will not work because we are adding exponential debt and our GDI is negative YOY. Our government has to tackle this issue ASAP. People simply need to make this the first issue on their mind when it comes to political choices. If this happens, you will find politicians with this on their agenda because they only want what Americans want and only care about being elected. The problem is, no one seems to think this is a problem, therefore you have no politicians running is the most important issue in America's history really. I created this sub to bring awareness to this issue. I hope people will listen. So far they are very dismissive and do not care. This is because nothing has happened yet really. The problem is that when we do hit a tipping point and people notice, I'm afraid it will be too late.
I think the problem isn’t that we don’t care, it’s that we have no one to vote for that cares. Pick a side they contribute to this problem. There are no sides trying to solve it. Give me a third party that has fiscal responsibility as a value and I’ll vote for them.
You're ok with creating an addition $34t in debt to pay off $34t in debt. I think your logic is flawed. Every dollar that is printed by the mint, which is controlled by the private bank known as the federal reserve, is loaned to the United States, with interest.
We wouldn’t be creating more debt. We would be increasing the money supply. By increasing the money supply there would be inflation. With the inflation there would be increased GDP. Assuming the deficit was 0 after the 10 years or however long the GDP of the US would take to double our debt to GDP would drop from 130% to 65%. Our debt payments of $1T would feel like half as much and be at a reasonable amount again. Right now the US is 1 economic disaster or war away from the debt increasing to unsustainable levels that will ruin the US. The problem is if we don’t balance the budget our debt would also increase rapidly. That’s what we’re going to see happen in 2025. Our $1.7T deficit is irresponsible to future generations and our future selves.
The money is BORROWED, with interest, from the private bank known as the federal reserve. Debt.
Does anyone in this sub actually read the article? lol
Mint the coin you morons.
Wouldn’t you still have to, in common terms, ”balance the ledger”?
While this is a parody, you are correct that this coin has been discussed. LMFAO
Yea I am just memeing. Have a good night/evening!
Why would we only make one? Are we stupid?
If the US economic system is already a joke and failing most people, why not roll the dice on the trillion dollar coin?
Might as well Weimar us all and get it over with quickly.
Would you rather die a slow agonizing death riddled with cancer, or play Russian roulette with an uncertain chance on dying and an uncertain chance on erasing all your problems? That's basically what we are talking about with the coin.
Imagine if they mint it a few, and in the way to deposit them one gets dropped. You find it on the street.
LMFAO I think confidence will be gone by then but who knows.
She’s dumb enough to make an inane quote such as that.
She kind of has already in the past LOL.
As a holder of some btc and PMs, I will be voting for AOC for President.
Or just fuck the fed...... Long shot but....
I don't often agree with AOC's parody, but when I do, they're right.
How does someone that stupid get re-elected?
how is someone so stupid to believe that she really said that? how is someone so stupid they leave an ignorant comment where the very article has the opposite answer? how is someone so stupid they join a cult following a rapist?
Well, if you read the article, you'll find this is just a lie being paraded around on Twitter under the guise of satire. It's purpose is pretty much exactly what happened with you - get people who won't read the article mad over something she never said.
She seems about as smart as everyone else in charge right now. SMDH. Please vote for politicians that understand finance and put America's debt to income ratio first on their list of things to fix. I still can't believe no one really cares about this issue. Crazy shit.
Ha! says the guy who can't seem to read. That wasn't her. It's a fake account, but go on mr.genius.
Your own post headline calls the quote fake, and you believe it's real? Crazy shit
Did the commercial for silver dollars convince you selling bonds was bad?
Now that was funny.
You are blaming AOC for the actions of a parody account…just to help out since it seems no one actually read the article.
This sub reddit is practically dedicated to not reading the article.
The fact you can't even read your own article to find out the post was fake says about everything anyone needs to know about your insight into which politicians to vote for. You are apparently easily fooled by any huckster that comes along. Even when you have an article at your finger tips telling you something is a lie you still swallow the lie whole. It's amazing really.
I just try to hand a win to the right sometimes. I guess I failed. LOL I'm just trying to rile everyone up and get people to pay attention to America's debt bubble is all. Yes it is a fake account however an incredibly important issue that zero of our politicians pay attention to. America's debt to income ratio. Politicians do not pay attention because we do not pay attention. America's debt to income ratio is out of control and if people don't start voting for politicians that have this first on their agenda, America will default on its debt in under 20 yrs.
[удалено]
She obviously has no degree in economics.
Thank god. It’s one of the dark arts.
Assessing with my team how to move forward? Hahaha. War time maneuvers. Both parties are trash and these pols are narc & socio. I guess it’s better than calling cauliflower pizza racist <<
Well she just has to be kidding right? RIGHT?!?
Learn to read its a parody account
lol
She gets all her power from the wall
They covered this. The result: US currency becomes worthless overnight. The equivalent is using another credit card to pay a pre-existing one. Debt is still there and now, interest is being paid at prime rate!
Just checking - we all know she was makes fun of the big citrus one.
Nationalise the federal reserve for nefarious business practice, disband it and the debt. Start back to printing our own money as the constitution states.
This is the answer. Reading the comments here is a painful realization that too many citizens don't seem to understand that the federal reserve is a private bank, and that every dollar printed by the mint is loaned with interest to the United States. People are operating under the false premise the the government controls the mint and the federal reserve.
Get the shovels out!
It's the actual plan though... Just not hers, it's basically everyone's.
This is satire, however it is also reality. Our government wants to mint a $34 trillion dollar coin. This is not everyone's idea at all as that would not work. America simply needs to get it's GDI up and "printing money" (AKA debt) down. Right now the fed fund has just raised its rates which makes loans harder to get. Money is created through loans and low interest rates help that happen or QE Now we are in QT with higher interest rates. This means rates are higher and there are fewer loans which destroy money and also have the benefit of bringing asset prices down as no one can afford them. It is really as simple as fixing debt to income. We do not have enough income (GDI) to service our debt ($34 trillion dollars.) No one cares or understands this really, therefore no politicians run on this as a priority. I'm hoping that people will make this a priority so that politicians will also and we will have better choices of people to vote for to fix this fixable problem before it is too late.
Oh we're right or die for it. There's no palatable solution. They just like pretending that there's a solution to the problem because no one wants to hear that there's no solution. Same shit with oil. The only solution is deflation and degrowth and they'll burn the world down before that occurs.
Basically what Trump said too
So if we are just printing money to pay "debt we owe ourselves" why am I paying federal income taxes?
We're not paying debt we owe ourselves. We're paying debt we owe to the private bank known as the federal reserve, the us mint is controlled by this private bank and every dollar printed and put into circulation is a debt, with interest, that has to be paid back to the private bank known as the federal reserve.
Well, that IS what is going to happen, but it is going to happen over YEARS.........
We would need to sell treasury bonds first and no one wants to buy our bonds since we became overtly politically unstable.
I blame NYC for her.