What has happened is that any political party that might focus on being the adult in the room - pay debts, get entitlements under control, etc, - loses to the 'free shit' appeals of the other party. The other party knows that they won't ever be the ones to pay for it, and that when/if the 'adult in the room' party gets power, if they should actually try to get the house in order, they'll immediately lose power the next election.

Thus, IMO, the longest period that any adult-in-the-room party will be calling the shots to actually get the house in order is one election cycle. Which is nowhere near long enough to actually get a house this messed up in order.

In other words, election dynamics make it so that unless both parties care about something painful, then neither party can do anything about it.

So, the choice becomes based on what else the parties bring to the table. More government/less government, etc.

I used to wonder how Japan could work, with home prices so high that the mortgages were 100 year terms. But they manage.

What debt is, in this case, is just the promise to deliver US paper money on the terms of the debt instrument. If US debt stopped being bought and the USG would then have to deliver when the then-current bonds/bills expired, they'd just fire up the Bureau of Engraving and Printing. No other choice. Lots more dollars floating around, with no increase in stuff to buy....inflation city.

But as long as the US debt is backed by the ability to tax the largest economy in the world, it's likely to continue to be in demand.

Only good news (karma, actually) is that Ocasio chick is likely young enough that she’ll get to spend her senior years experiencing the destruction that’s coming.

quote:

Originally posted by 46and2:

quote:

Originally posted by darthfuster:
The real destruction comes when public services collapse.

There will be hell to pay when I can't get a container of delicious ice cream 24/7.

Lol well I had other social services in mind.

The debt won't stop or ever be paid off. That ship sailed long ago.

Predicting what will happen is something I'm not smart enough to do. What I know is that I'm relatively smart and a hard worker. I think me and mine will always be fine. If we have to move to a more prosperous nation someday, I'm perfectly fine with that.

People can vote us into ruin, but the people who make things happen will always be welcome somewhere else. The people who voted us into ruin won't have the ability or skill to be welcomed into the better economy.

quote:

Lol well I had other social services in mind.

LOL. Get your own damned ice cream!

Seriously, the whole idea that government should 'redistribute' the earnings of some to provide 'social services' to others is the problem in the first place. There will always be a demand for more social services putting an ever larger burden on those asked to carry it.

They just print more money. The only way they can keep this thing afloat is to use inflation and now they've discovered they can manipulate interest rates to keep their payments lower.
If central banks couldn't "fix" the interest rate to their liking and it went to a real market driven rate, things would start to go downhill real fast.

quote:

Originally posted by 220-9er:
They just print more money.

Quantitative easing

I'm positive it will all be okey-dokey right up until a black swan event that causes the worldwide financial house of cards to collapse...

something small, say Italy tells the EU to pound sand. The folds on payments, the Eurobanks take a bath, interest rates climb, the derivative market collapses, interest rates on US Treasury's go up (anyone here remember Carter-era 18% interest rates?), and that's it - suddenly, we won't be able to pay the notes and keep the business of Govt going. That will force ugly decisions.

My theory? Chaos theory. If it keeps generating chaos amongst the electorate while the politicians work to insulate themselves from its effects at our expense it’ll continue to be a hammer held over our heads.

I've mispredicted the collapse enough times that I doubt all predictions now. Especially my own.

Yet still, the debt scares the holy bejesus out of me. It's out of control, and if you can't get it in control when things are good, what will occur when they go bad (and they always do at some point)?

Continual economic growth of over 3% will go a long way to staving off the consequences resulting from a large national debt. It will take "draining the swamp" to right the ship though. I'm not worried in the least.

There are those who believethat the present form of govt, a democratic republic that operates in conjuction with capitalism, needs to be replaced. How does it get replaced? By first bringing it down through economic chaos and civil disorder. How best to encourage the process? Pump up national debt to unsustainable levels.

Like O did during his adm. With the election of socialists and the propagandizing of a entire generation, the train towards disaster is building speed.