Speaking of monetarism
10/8/10 05:01![[identity profile]](https://www.dreamwidth.org/img/silk/identity/openid.png){kind=small}
papasha-mueller.livejournal.com posting in ![[community profile]](https://www.dreamwidth.org/img/silk/identity/community.png){kind=small}
talkpoliticsI just read in my post:
"Imagine yourself one can pull together ALL MONEY, that exist in this world, in a single pile. You did? Fine.
The US Federal debt is much higher.
So it cannot pay it, technically speking."
What's the way out?
Discuss.
PS. If you see "nonsense" in the tags - you know :Big Brother Mofa is watching was here again.
"Imagine yourself one can pull together ALL MONEY, that exist in this world, in a single pile. You did? Fine.
The US Federal debt is much higher.
So it cannot pay it, technically speking."
What's the way out?
Discuss.
PS. If you see "nonsense" in the tags - you know :
(no subject)
Date: 10/8/10 01:03 (UTC)Like that would ever happen.
I guess, Russians
Date: 10/8/10 01:09 (UTC)Re: I guess, Russians
From:I ain't after publicity, son.
From:Re: I ain't after publicity, son.
From:I know he/she should.
From:Re: I know he/she should.
From:I'm afraid
From:Re: I'm afraid
From:Well,
From:LJ feature ?
From:Re: LJ feature ?
From:No probs,
From:Re: I guess, Russians
From:For such a SAM
From:(no subject)
Date: 10/8/10 01:35 (UTC)it's a good idea
(no subject)
Date: 10/8/10 01:59 (UTC)Let the people who ran it up pay for it. :P
(no subject)
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Date: 10/8/10 01:09 (UTC)First, most money doesn't exist in paper form, but exists in accounts as raw numbers and as raw value. As a basic point, the "total" amount of money could pay the debt tomorrow if it was all used for that purpose.
The way out, though, is seeing the debt as it exists. If you make $50k a year and have a 30 year, $100k mortgage, are you desperately seeking a way out?
You maybe not
Date: 10/8/10 01:13 (UTC)(no subject)
Date: 10/8/10 11:26 (UTC)(no subject)
From:(no subject)
From:(no subject)
Date: 10/8/10 01:16 (UTC)In other words, there is a multiplier effect being ignored in that example.
That said -- yeah, some debt forgiveness wouldn't hurt.
And what happens
Date: 10/8/10 01:19 (UTC)Re: And what happens
From:And we screw it too...
From:(no subject)
Date: 10/8/10 01:20 (UTC)(HINT: If it's owed, then it's money.)
Perhaps what you meant to say is:
Imagine that one can pull together EVERY BILL AND COIN that exists in this world into a single pile. The US Federal debt is much higher.
That idea is quite possible, though I'd want to see actual numbers before I'd believe that idea.
A quote is a quote.
Date: 10/8/10 01:27 (UTC)Re: A quote is a quote.
From:I'm afraid
From:Re: I'm afraid
From:M0=M3 ???
From:(no subject)
Date: 10/8/10 01:40 (UTC)Highly unlikely. Every coin includes the platinum, gold, and silver coins, and they're quite numerous and much more valuable than their dollar denomination.
(no subject)
Date: 10/8/10 02:05 (UTC)Once you stop growing the debt, long term economic expansion is the best solution, by reducing the debt as a % of GDP (and the interest payments as a % of government expenditure), you can open up some room to start debt repayment. Realistically there's no way this will be paid off in our lifetimes, but we can make progress in the right direction.
Unfortunately there's little political will to even start acknowledging that there's a problem.
(no subject)
Date: 10/8/10 14:25 (UTC)(no subject)
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Date: 10/8/10 02:08 (UTC)US politicians refuse to do that.
Until they admit there is a problem and take that first step the solution to the problem will remain out of our reach.
To put it as simply as possible: if you continue to spend more than you take in the debt will never be paid off. If you start spending less than you take in, no matter how little, the debt will eventually be paid off.
Our government is doing the equivalent of taking an interest-only mortgage on a house worth 80% of what it was in 2007 and only making minimum payments on several credit cards which are maxed out.
Incredibly there are those who insist another loan will fix everything. IMO the obvious solution is to prioritize your spending and only fund a limited number of items which allows you to start paying down the debt, too. That's what families on a budget do. Out with the cell phones, drop the cable/satellite tv. Eat at home and carpool.
I don't see anyone in government doing comparable things at the federal level. They really believe they won't be around or held accountable when the economy eventually collapses.
(no subject)
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Date: 10/8/10 02:13 (UTC)(no subject)
Date: 10/8/10 14:30 (UTC)(no subject)
Date: 10/8/10 02:48 (UTC)(no subject)
Date: 10/8/10 08:34 (UTC)(no subject)
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Date: 10/8/10 02:48 (UTC)(no subject)
Date: 10/8/10 03:16 (UTC)(no subject)
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Date: 10/8/10 03:19 (UTC)But cash or cash equivalents are not the only assets one can have. Total asset value is somewhere around 200 trillion.
(no subject)
Date: 10/8/10 03:26 (UTC)(no subject)
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Date: 10/8/10 04:55 (UTC)(no subject)
Date: 10/8/10 08:36 (UTC)(no subject)
Date: 10/8/10 12:31 (UTC)The fact that there may not be enough physical bills in existence to cover the debt is not so much of an issue. The little pieces of paper are not really what money is, they are just a means of transmitting and storing wealth, other means are just as viable and effective.
The problem is that on a global scale there is almost certainly not enough real wealth backing up all of the debt floating around out there. Therefore since every debt is also an asset for someone else that means that a whole bunch of us are sitting on a whole bunch of overpriced assets.
This means that at some point either intentionally and methodically or randomly and chaotically those asset prices need to be reduced and relative wealth effectively destroyed to bring them back into balance with the real wealth (aka capital which for purposes of this discussion can be considered the capacity to do work) that actually exists to back the prices up.
The problem comes in is that nobody is going to just sit around and watch their lifes savings be wiped out and not get upset about it and even if we try to do the work intentionally and methodically it becomes VERY difficult to predect the outcome of any given policy and who will ultimately pay the price for it.
I think it is safe to say that Riots like those in Greece will be the best case scenario, I think it is far more likely that much of this "price correction" will happen in civil wars in most of the Industrialized countries.
That's damn good. response.
Date: 10/8/10 13:18 (UTC)This world is greatly oversold and I guess, the Closing day shall happen not in Youtube but in NYSE.
(no subject)
Date: 10/8/10 13:31 (UTC)(no subject)
Date: 10/8/10 19:20 (UTC)(no subject)
Date: 10/8/10 19:32 (UTC)(no subject)
Date: 10/8/10 19:33 (UTC)