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Pioneer1

Both The Shut Down and Debt Ceiling Are Jokes

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The socalled government shut down is a joke, lol.

First of all the government is not "shut down".
Only SOME things managed by the federal government are shut down, the government itself is still up and running.

Congress is still working.
The President is still working.
And the Supreme Court is still doing whatever the hell it was doing a couple months ago.
The military is still operating.
And with the promise of getting all the money they lost while on furlough reimbursed back to them....this is nothing but a vacation for most government workers.

In other words, they're still collecting taxes and making laws but just aren't doing anything for the people.
And this is just what the Tea Party and other right-wing hardliners want.
A society with very little government involvement in the lives of most citizens.
This allows the corporations and private firms take the reins of power and do what they will




The so-called "debt ceiling" is another joke.

A ceiling means just that.....a limit you can't go beyond.
Hell, if they can raise it anytime they like then it's not a real ceiling is it?

I have a credt card with a limit.
Once I hit that limit....that's it!
I can't buy more things with that card and then just call the bank for them to RAISE the limit.
 

I think this entire thing is just a big game between both Democrats and Republicans being played on the American population to further corporate agendas.

Why is America even in "debt" in the first place?
The Constitution actually gave the government the right to literally print up as much money as they need and assign value to it.

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The US is funded through government bonds. China is one of the holders.

If you print more money you devalue the currency. Germany did it after World. War I. People were paid in buckets and there was hitlet

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Delano

 

 

The US is funded through government bonds. China is one of the holders.
If you print more money you devalue the currency. Germany did it after World. War I. People were paid in buckets and there was hitlet          

 

 

Now, I knew someone was going to bring up inflation and devaluing of the dollar....
And I didn't have to be the "psychic" to know it...lol.

I'm not the smartest person in the world, so can you (or someone) help me understand why the government is issuing bonds and borrowing money from Russia or China when the Constitution gives the United States the right....duty....to not only print it's own money but also assign VALUE to it???

The value of the dollar is whatever Congress says it is.

The United States was $8 trillion in debt in 2005.
It's now approaching $17 trillion in 2013.

Has the price of food, real estate, cars, or anything else we buy in dollars DOUBLED?
No.

The value of the dollar has nothing to do with the debt, or the amount printed.

The value of the dollar just like the value of any currency is directly associated with the military might of the nation printing it.
As long as the United States remains a strong military superpower, the dollar will be good and the debt won't matter.

That's why I say it's all a joke.

The debt ceiling.....
The national debt....
The gold standard.....

These are all arbitrary concepts because ultimately none of it really matters.

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Money has a price it's called the interest rate and the exchange rate. I would agree that the value is arbritray but it is based on supply and demand.

 

The US Govermnent funds itself with Government bonds. Some of those bonds are held by companies and countries. Those bonds are secured by the taxing ability of the US. If you print more more money each dollar is less valuable, and in effect you have decreases your outstanding debt.

 

Let's say there 1 trillion in debt and the us economy produces 20 trilion in goods. So each dollar that is lent you are pretty sure the US can pay you back. Let's say that the economy drops 10%, well now you still have atrillion in debt but it is supported by less revenue. So your bondholder is likely to be happy because the dollar is worth 20 percent less, and is more likely your debt is less secured. So you wouldn't lend the Us more money.

 

Let's say you lend a friend $1,000 every year, and he pays you $200 dollars interest every year. One day he says look I am know working part time, you would be less likely to lend her a $1,000 and you may start worrying about gettng your money back. So you may say look I'll lend you $1,000 for less than a year but you have to pay me more interest.

 

Hopefully we won't find out if you are right.  Because if the US defaults on it's debt then it will effect the global economy.

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