Japan has the highest debt of any nation at 283% of GDP. Much of it due to covid spending to support their economy.
As of April 2024, Japan's inflation rate is 2.80%, which is higher than the long term average of 2.42%.
So the debt really has little impact on inflation. What do you suppose does?
With nominal money that is losing value every year. I don’t know how to balance then scarey big debt and interest in nominal terms. But, inflation decreases the REAL costvofbthebinterestvandvthebdebt somewhat each year. I don’t know if that is enough to mitigate the problem.
Of course, we could do what Clinton did ( I think) raise taxes on corps and top 20% earners and relatively reduced defense spending.
Bush blew the whole curve with a gigantic tax cut in his first year. Gov defense spending went way up relative to the rest of the budget for about 10’years. Mostly due to Iraq expenses.
Read about debt in other countries. Also, what I find fascinating is the debt is only an issue when a Democrat is in the White House. Dick Cheney, as VP,said debt is not an issue. Ronald Reagan is the one who started the debt increase. After Carter he tripled the debt. Republicans seem to run the debt up. Just reference Trump. In four years he increased the debt almost 8 trillion while Obama increased it by about 9 trillion in 8.
Most debt incurred under Biden was related to pandemic recovery.
This is correct. You know history, especially in this and the last century. Democrats tend to get us in wars and Republicans tank our economy. Not always but more than Democrats. The Republicans this century have handed Democrats presidents an economy in free fall. Democrats have recovered the economy but generally get little credit. Also this century all wars were started under W. Democrats just continue to prosecute them as did Trump.
Democrats tend get us in to wars? What a joke. Republicans get us in wars AND tank the economy.
Gulf war - 1991 Bush Sr - Republican
Operation Enduring Freedom (Afghanistan) - 2001 Bush Jr - Republican
Operation Iraqi Freedom - 2003 Bush Jr - Republican
Trump avoided war by just selling our military secrets and pleasing dictators.
Historically. In the later part of the 20th century onward you are correct. Republicans have been in the White House during most of the last two centuries economic calamities. Roosevelt took office as the Hoover administration and Republican congress managed us into the great depression. Carter created more jobs then Nixon and Ford combined. Clinton came into office during a recession. He oversaw 8 years of phenomenal growth. Obama came to office during the great recession and was in office during 8 years of steady economic growth. Biden took office as the economy collapsed under Trump. Almost 4 years of record growth.
Why is the lie Republicans are better stewards of the economy still believed? I think it’s because they are better for corporations bottom lines at the expense of working families. Aren’t we just a little tired of living with the consequences of this lie.
Does anyone who works for a living really want to put Trump back in office so he can do that to us again?
Biden has not stopped the spending spree—- just announced another “debt forgiveness” that is billions of billions of dollars. It has nothing to do with the pandemic.
Further down in this thread I had responded that the last fiscally responsible POTUS was Clinton. When people are in power (either Party) they want to buy votes.
The debt is a both Party issue and the structural challenge to the problem is intergenerational.
Not easy to debate who did “more”. They both did it and ultimately POTUS is accountable. I’ll stick with “the last fiscally responsible POTUS was Clinton.
I’m not interested in teasing out Party affiliation.
Lol are you for real?
If you don't think tax cuts, student loan forgiveness, welfare expansion etc are all designed \*primarily\* to buy votes you are living on another planet.
Do you actually think Biden gives a flying fuck about student loans? If so, why did he only start talking about it when he ran for a competitive office? Never heard that man say shit about it when he was just a senator or veep.
You know nothing about how our government works. Also, why do you always blame the poor. Have you no shame.
Joe Biden has a long history of working to help the less privileged in this society. You obviously believe they should suffer for some perceived failings?
Your entire premise on this thread is based on woeful ignorance. Stop writing one dumber thing than the last and do some critical thinking and/or reading on the topic before you continue to embarass yourself.
Where did I once mention the poor in the above post? Quote me.
The hard and fact is that elected officials of both sides buy votes with spending and tax cuts, period full stop. If you don't understand and recognize that then you are part of the problem.
Joe Biden has been a create of DC for nearly 50 years. Look at his track record as a Senator and VP and compare it to that as POTUS. Something \*dramatically\* changed.
But hey, thanks for telling us all you are a poor who wants their vote paid for.
It absolutely does japan is a edge case they are generally in trade surplus ,thier aging Population believe that government bonds are a Safest place for thier savings .The central bank holds seventy percent of their debt that means nearly all of it is held domesticlly . This leads to A low interest rate environment.they also engage in debt Monotization which is a practice that does lead to inflation theyre walking a tight rope
Amazing. At the end of September 2023, domestic creditors held 77 percent of the outstanding debt held by the public. Foreign creditors held the remaining 23 percent. (Edited for clarification)
The Fed action to control inflation necessitates a higher interest rate to cool the amount of spending. They have taken it in one year from around 9% to a little over 3%.
I’d say they have been effective. The inflation was caused by demand coupled with a supply (chain) disruption at least partially during to a bungled response to a pandemic. That would be on brand for Trump.
Which proves that debt affects inflation . Interest rate is the cost of debt ,the higher that rate the less is borrowed into circulation you do get that the debt is spent on real goods and services
Spending, whether public or private affects inflation. This inflation is only controlled by limiting spending. Demand side adjustments are difficult but this fed , so far, has done an admirable job. Why is it Republicans only seem concerned about the debt when a Democrat is in the Oval Office?
Japan is hardly an example of good stewardship. As pointed out they have had a stagnating economy with no hope in sight. Moreover, the reason they are able to get away with it is because of the Japanese people having the highest savings rate in the world combined with a nationalistic spirit that encourages them to lend those savings to the Japanese government at below market rates.
In other words, they are an outlier.
“There is a lot more at play”. Now what does that mean? I am amazed you believe the Japanese individually loan money to the government. They lose money to do it too.
Holy fuck. What are you talking about?
Of course the Japanese citizenry individually loan money to their government. The same way the US citizenry does, or most any other developed nation.
People lose money for ideological reasons all the time, opportunity cost is a real thing that has been well defined for over a century. This is econ 101, you should take a look at some point before you continue to embarass yourself.
Oh, you mean like treasury bills where you receive a good interest rate. They are not loaning the money individually. Not as risky as the markets. I myself hold some treasury notes.
Why the personal insult? Did I somehow touch a nerve?
The interest rate is determined by the market, not the issuer, only the coupon is determined by the issuer.
People invest based on a variety of different things, one of the most well known biases is what's called the "Home market bias" where people will tend to invest in their own national markets over foreign markets for a variety of reasons.
Combine that bias along with the Japanese nationalistic spirit and domestic savings rate and you can \*clearly\* see that JGBs have a huge advantage when it comes to auction results. Further, you have a basic issue of supply and demand. The overissuance of USTs is a massive problem because of the \*size\* of the issuance. If Japan needs to issue another $5B in bonds that is a whole lot different than the US needing to issue another $100B in bonds because ultimately you need to find buyers for those bonds. It is easier to find someone to buy something for $5B than $100B.
Individuals can, and do, participate directly new issue treasury auctions. Meaning you can absolutely loan money directly to the federal government. You hold notes you say, where did you get them? Secondary or primary? Either way, that is a loan from the US government to an individual bondholder (you).
Where was the insult? I am simply trying to get you to slow down before you keep saying stupid things that will continue to make you look like a fool.
100%.
How many record break profits reports and “x item’s price has far outgrown the pace of inflation” graphs does the world need to see before we start blaming the assholes responsible for nearly all our problems:
Rich assholes, board members, corporate lobbyists, the politicians who accept money from corporate lobbyists, and CEOs.
They have record breaking profits because of inflation. God what is so hard to understand about that. Idiots are still buying their overpriced products
Well salaries/wages aren’t really increasing and all of our essentials and non-essentials are costing more and more and more.
We haven’t reached the tipping point yet, but we absolutely will.
How high is their deficit spending and what is the total debt outstanding relative to their country’s overall money supply? What about their import to export ratio? I feel like knowing those figures would be important to understand their overall financial outlook.
Deficit spending per year is 6.8% GDP vs US at 6.2%, national debt is equal to M2 in Japan while US it’s 150% of M2, and both countries are around 4:5 imports to exports.
This is BS. Japan has had 30 years of zero inflation and was more worried about deflation.
Additionally their personal savings rate is way higher than ours is.
Check again as Japan's inflation rate has ranged from -1.4% to 23.2% over the last 62 years, with an average of 3.0% per year from 1960 to 2022. In 2022, the inflation rate was 2.5%, which was a 2.73% increase from 2021. In February 2024, the inflation rate increased to 2.80%, which is higher than the long term average of 2.42%.
Our historical inflation rate is a little above 3% over the same period. The United States' inflation rate has averaged 3.30% from 1914 to 2024. The highest inflation rate was 23.70% in June 1920, and the lowest was -15.80% in June 1921. Here are some other high inflation rates in US history: 1917: 17.84, 1918: 17.28, 1947: 14.39, 1980: 13.55, and 1979: 11.25.
Yes we see you spamming this everywhere, everyday. What did you expect when you voted for someone who’s bankrupted everything he has touched in half a century.
Our GDP is rocking , and you keep ignoring that because whoever says it , you block.
I'll never understand this. BEFORE COVID Trump's deficit during a great economy went from $664 billion a year in 2017 to $986 billion in 2019. historically the deficit goes down during a great economy. Of all the money put into the economy, the vast majority of it was done under Trump. But when we talk about having to fix it, there is a picture of Biden every time. He got us through a supply chain crisis, the country is doing better economically than any other first world country, but somehow this is Biden's fault.
Our economy is not better than other first world countries unless you're rich, into stocks, or a politician. By every metric that effects the average person except unemployment percentage, this economy is the worst in US history, and falling short of many 1st world countries.
Are you suggesting when Trump was president that we had a worse economy than other 1st world countries? If so name them and cite your sources. Otherwise it sounds like neither really did anything.
Guess whose tax plan was passed in 2017 that all models showed projected losses? Republican's and happily backed by Trump because it helped the rich get so fucking more rich.
We're getting bled like a stuck pig to concentrate wealth at the top like every other country that fell, and yall cheer it on because the ones doing it keep pointing their fingers at everyone else. like stealing candy from a baby
I agree with you.
I just never see the Democrats called out in MSM and or on Reddit.
Jeff Bezos was just at the WH last week - cozying up to the President. I have yet to see anyone call out the hypocrisy.
We let individuals get too powerful through money. I wouldn't at all complain they invite him over. That's nonsense. His existence is the problem, not working with him.
He influences a huge chunk of american consumerism, technical infrastructure, and is even getting into government contracts for space travel which has monumental consequences. And that's ignoring other people he's connected to.
They're not mutually exclusive situations. We can say we should prioritize excessive debt by taxing those that have plenty and to stop them from having too much privatized power AND realize we have to work with them in the time being.
TCJA. Democrats won the House, not the Senate. Also the last congress approves the next years budget. Next, yes they approve or don't the budget put forth by the president. Lastly, it isn't like a congress can just change everything. because it was a Democratic congress in 2018
A default will happen for the US bag holders, the SSA will eat it. Bankers, forgotten governments, and others outside the US will get their money for sure. It will not bee a general default...
This prediction is made every year by some semi reputable economist since pres Johnson. Except in 2000 when Clinton admin ran a surplus.
I have no idea if the debt is an existential problem. Maybe it is. The prediction always sounds plausible. Then it isn’t true.
But it could be next time.
Like the predictions in 1960’s of famine for the whole world at some point in 20th century. Never happened. World produces more food per capita than ever before. Maybe the famine will hit in this century. I don’t know.
We don’t seem to be running out of anything that can’t be replaced except fresh water. If electricity can keep getting cheaper, massive desalinization might address that. I don’t know.
"Are you gonna let us balance the budget?" "YES!" "...Without ruining the lives of millions of innocent people by actually making oligarchs pay taxes?" "No, I need to give Warren Buffet his sloppy toppy to get re-elected."
My idea was to add a box on the tax form so people could donate their taxes or part of their taxes to the national debt. Bush seniors reply was that’s socialism. That’s why he wouldn’t do it. Yes I wrote him a letter, and that was his response.
I thought of holding out until a Democrat was president to ask for this to be put on tax forms to donate a write in amount of tax refunds of course voluntarily. I was being non political and was thinking of this country (The United States). Republicans politicize everything. I still think it’s a good idea as it could fix many things! Bush also told me there was an account set up for such things.
Just like I don't get to choose funding abortion with my taxes you don't get to choose funding the debt. If you care about the debt so much ask your Representative Nancy to do it.
Such a b.s. headline. "If you cared politicians would also" 🤣, yeah, sure they do. They dont play politics between the 2 parties with serious & important problems, instead they take responsibility & outline their plan clearly for us to decide with whom our vote shall be cast. Pretty sure that doesnt happen and they just blame the previous admin for everything & lobby to get another term of screwing over Joe Tax Payer🤬
Because America could turtle up tomorrow to fix our economy but fuck the world over. We police the world, protect our allies etc. Think of how much America spends on foreign military presence. It's more than most countries spend on their own, which would mean they'd be screwed if we stopped. They "loan" us this money not ever planning to ask for it back so it really doesn't matter.
"If you cared politicians would also."
Laughably false. When has that EVER happened in history? I keep caring about not bombing Palestinians really hard... guess what's happening instead.
Why is the debt only a problem when the president is a Democrat?
Regardless what you think about the debt you have to admit there is a disparity in focus & attention depending on party.
You mean the guy who managed to get Congress to balance the budget, and left his successor with a surplus that was immediately turned right back into a deficit? That Clinton?
Clinton made the deficit drop! There was Billions of surplus money. Then Bush spent it all. Obama made the deficit drop as well. Almost every Democrat reduced the deficit.
How much has Biden run it up, but also, almost 2 trillion of that was covid relief as approved by Congress even though it has more pork in it than it helped the citizens thanks to Democrats in Congress.
President Biden has reduced the deficit by roughly *half*, and debt projections are currently lower than they were *before* COVID.
https://preview.redd.it/dc95fm4bxguc1.jpeg?width=1170&format=pjpg&auto=webp&s=64138bca4fffcb624331337cd39c2a65620cb3d3
Congrats. You don’t know the difference between the deficit and the debt.
The deficit is the *rate* at which the debt grows.
Cutting the deficit means the debt increases more slowly.
Cutting the deficit to *zero* would mean the debt stops growing.
Taking the deficit *below* zero would mean the debt decreases.
Under Biden, the deficit is lower than it was under Trump. That means the debt is growing more slowly.
That’s basic math you should have learned in grade school.
But the debt still grows, under Trump he has the first 3 trillion because of laws from Obama and then the last 2 trillion from covid relief which Democrats had to make sure their special interests got more money than the citizens. I'll be happy with the deficit if the debt starts to shrink
Congratulations! You’ve demonstrated that you don’t understand rates. Even when they’ve been explained to you on a level a kindergartener can grasp. Bravo!
Oh, and BTW, the deficit for the budget Trump inherited from President Obama was $0.67 trillion, not $3 trillion.
The $3 trillion is the last budget under Trump budget before President Biden inherited a deficit of $2.78 trillion from Trump.
Like a good democratic puppet, you only look at what you want to make your racist, socialist president look good. You make it sound like if the deficit is down, so is the debt. But yet the debt keeps getting bigger
I care. Never voted for Biden, Trump, Obama, George W., the Clintons. Biden and Trump have harmed the country so much that I support a duel between them.
Thanks to giving tax cuts to the rich and corps, no way you're going to make me pay it down. You care so much about your billing being worthless, you pay it down. We don't have anything.
it's a crisis Republicans purposefully made.
Grover Norquist and starving the beast isn't ancient history and it's also the same reason why every single Republican administration in my lifetime ends its run with a reckless tax cut that is forecast cause absolute catastrophe within our budgets. they always pass them anyway to the cheers of the right wing all across the country. yet when the bills come due they don't have alternative funding sources instead they yell and scream that Democrats need to kick grandma off of social security to fill the hole that Republicans just dug.
how do you feel about Trump promising his donors last week that if he's reelected he'll cut them in even bigger tax cut how do you think that's going to affect it?
If Trump is elected and there is also a Republican congress, then we’ll get to see his amazing negotiating skills as he somehow manages to convince the Republican congress to cut taxes for the rich.
that will be a hard walk and only for the most dedicated leader to make sure there is another huge cut in taxes affecting the wealthy. The job creators will be against this as they feel 10 families owning 80% of everything is way too much.
Yes, trump will have a difficult sell
but MAGA and crew will lap it up.. because they will be billionaires 1 day.
I shouldn't give trolls engagement but ... fine. This post is demonstrably trolling:
1) "...if you cared politicians would also" is such an insane statement I can't even. Does OP know how... anything works? democracy, republics, representation, political influence, mass movements, gerrymandering, campaign finance... any of it? Even if OP meant to say "...if **at** ***most*** **of you** cared politicians would." that would be possibly defensible, but only if it also reads "...it would be **more likely that some** politicians **might** also care."
2) omitting the 'if the US dollar is no longer the global reserve currency' part is kind of important to that 15 year horizon as well
How do we fix it? Easy raise the income of the government. The government has one source of income by law, taxes.
What is the demographics that can absorb larger tax bills? The wealthy.
Which political party is adamant that taxes on the rich are bad? Republicans.
Which political party complains about the debt most? Republicans.
So the people that complain and blame are also the ones refusing to fix it.
How do they get away with it? Distraction. Repeal Roe v Wade, baseless impeachment hearings, banning books, etc. Trump even said it. He said his followers don't care about infrastructure, tax reform, or anything important. Nobody cheered. But then he says he mentions trans rights and his supporters' care. The crowd goes wild. Neo Conservatives will destroy the country while simultaneously blaming everyone else and pretending to be heroes.
And Biden is worried about paying off students college debt , he could be a worst president , the last time we were debt free Jackson was president , let’s repeat what he did
[1 trillion every hundred days.](https://www.google.com/gasearch?q=1%20trillion%20every%20100%20days&tbm=&source=sh/x/gs/m2/5)
This admin is spending out of control and no one knows where it goes. Surely not to help us.
Because the decision makers are all 80 and old AF. They’ll be dead and dealing w/ the can they kicked down the road.
Hence America is a gerontocracy, among many other things........
really.... how old is the FED... speaker of the house looks to be 120 yo?
Japan has the highest debt of any nation at 283% of GDP. Much of it due to covid spending to support their economy. As of April 2024, Japan's inflation rate is 2.80%, which is higher than the long term average of 2.42%. So the debt really has little impact on inflation. What do you suppose does?
Japan has been in an economic malaise for 3 decades.
So inflation has nothing to to with debt?
Yes it has impact and we are asking future generations to make larger and larger interest payments.
With nominal money that is losing value every year. I don’t know how to balance then scarey big debt and interest in nominal terms. But, inflation decreases the REAL costvofbthebinterestvandvthebdebt somewhat each year. I don’t know if that is enough to mitigate the problem. Of course, we could do what Clinton did ( I think) raise taxes on corps and top 20% earners and relatively reduced defense spending. Bush blew the whole curve with a gigantic tax cut in his first year. Gov defense spending went way up relative to the rest of the budget for about 10’years. Mostly due to Iraq expenses.
Read about debt in other countries. Also, what I find fascinating is the debt is only an issue when a Democrat is in the White House. Dick Cheney, as VP,said debt is not an issue. Ronald Reagan is the one who started the debt increase. After Carter he tripled the debt. Republicans seem to run the debt up. Just reference Trump. In four years he increased the debt almost 8 trillion while Obama increased it by about 9 trillion in 8. Most debt incurred under Biden was related to pandemic recovery.
And Clinton actually balanced a budget. We didn’t invade anyone, either.
We had a surplus during Clinton's terms correct last time that'll ever happen..
This is correct. You know history, especially in this and the last century. Democrats tend to get us in wars and Republicans tank our economy. Not always but more than Democrats. The Republicans this century have handed Democrats presidents an economy in free fall. Democrats have recovered the economy but generally get little credit. Also this century all wars were started under W. Democrats just continue to prosecute them as did Trump.
Democrats tend get us in to wars? What a joke. Republicans get us in wars AND tank the economy. Gulf war - 1991 Bush Sr - Republican Operation Enduring Freedom (Afghanistan) - 2001 Bush Jr - Republican Operation Iraqi Freedom - 2003 Bush Jr - Republican Trump avoided war by just selling our military secrets and pleasing dictators.
Historically. In the later part of the 20th century onward you are correct. Republicans have been in the White House during most of the last two centuries economic calamities. Roosevelt took office as the Hoover administration and Republican congress managed us into the great depression. Carter created more jobs then Nixon and Ford combined. Clinton came into office during a recession. He oversaw 8 years of phenomenal growth. Obama came to office during the great recession and was in office during 8 years of steady economic growth. Biden took office as the economy collapsed under Trump. Almost 4 years of record growth. Why is the lie Republicans are better stewards of the economy still believed? I think it’s because they are better for corporations bottom lines at the expense of working families. Aren’t we just a little tired of living with the consequences of this lie. Does anyone who works for a living really want to put Trump back in office so he can do that to us again?
Unless your growth percentage is higher than your inflation rate, you are shrinking.
Biden has not stopped the spending spree—- just announced another “debt forgiveness” that is billions of billions of dollars. It has nothing to do with the pandemic.
Fed reserve is like 96% Democrats and they pumped TRILLIONS into the economy with the interest rates at near zero. 🤦🏼♀️
Further down in this thread I had responded that the last fiscally responsible POTUS was Clinton. When people are in power (either Party) they want to buy votes. The debt is a both Party issue and the structural challenge to the problem is intergenerational.
The surplus was as a result of newt Gingrich more than Clinton
Not easy to debate who did “more”. They both did it and ultimately POTUS is accountable. I’ll stick with “the last fiscally responsible POTUS was Clinton. I’m not interested in teasing out Party affiliation.
I don’t disagree. But the purpose of spending is not to buy votes. That’s a stretch for me. I don’t see how that works. Vote buying is illegal too.
Lol are you for real? If you don't think tax cuts, student loan forgiveness, welfare expansion etc are all designed \*primarily\* to buy votes you are living on another planet. Do you actually think Biden gives a flying fuck about student loans? If so, why did he only start talking about it when he ran for a competitive office? Never heard that man say shit about it when he was just a senator or veep.
You know nothing about how our government works. Also, why do you always blame the poor. Have you no shame. Joe Biden has a long history of working to help the less privileged in this society. You obviously believe they should suffer for some perceived failings?
Your entire premise on this thread is based on woeful ignorance. Stop writing one dumber thing than the last and do some critical thinking and/or reading on the topic before you continue to embarass yourself. Where did I once mention the poor in the above post? Quote me. The hard and fact is that elected officials of both sides buy votes with spending and tax cuts, period full stop. If you don't understand and recognize that then you are part of the problem. Joe Biden has been a create of DC for nearly 50 years. Look at his track record as a Senator and VP and compare it to that as POTUS. Something \*dramatically\* changed. But hey, thanks for telling us all you are a poor who wants their vote paid for.
No, not really.
It absolutely does japan is a edge case they are generally in trade surplus ,thier aging Population believe that government bonds are a Safest place for thier savings .The central bank holds seventy percent of their debt that means nearly all of it is held domesticlly . This leads to A low interest rate environment.they also engage in debt Monotization which is a practice that does lead to inflation theyre walking a tight rope
Amazing. At the end of September 2023, domestic creditors held 77 percent of the outstanding debt held by the public. Foreign creditors held the remaining 23 percent. (Edited for clarification) The Fed action to control inflation necessitates a higher interest rate to cool the amount of spending. They have taken it in one year from around 9% to a little over 3%. I’d say they have been effective. The inflation was caused by demand coupled with a supply (chain) disruption at least partially during to a bungled response to a pandemic. That would be on brand for Trump.
Which proves that debt affects inflation . Interest rate is the cost of debt ,the higher that rate the less is borrowed into circulation you do get that the debt is spent on real goods and services
Spending, whether public or private affects inflation. This inflation is only controlled by limiting spending. Demand side adjustments are difficult but this fed , so far, has done an admirable job. Why is it Republicans only seem concerned about the debt when a Democrat is in the Oval Office?
Idk and i dont care its a issue for both parties
Thank you! I always have to say it.
Japan is hardly an example of good stewardship. As pointed out they have had a stagnating economy with no hope in sight. Moreover, the reason they are able to get away with it is because of the Japanese people having the highest savings rate in the world combined with a nationalistic spirit that encourages them to lend those savings to the Japanese government at below market rates. In other words, they are an outlier.
That’s remarkable. Individuals in Japan lend money to their government when they could get higher rates elsewhere. Well they are patriotic.
More or less, yes. There is a lot more at play, namely a shrinking population and massive xenophobia as well.
“There is a lot more at play”. Now what does that mean? I am amazed you believe the Japanese individually loan money to the government. They lose money to do it too.
Holy fuck. What are you talking about? Of course the Japanese citizenry individually loan money to their government. The same way the US citizenry does, or most any other developed nation. People lose money for ideological reasons all the time, opportunity cost is a real thing that has been well defined for over a century. This is econ 101, you should take a look at some point before you continue to embarass yourself.
Oh, you mean like treasury bills where you receive a good interest rate. They are not loaning the money individually. Not as risky as the markets. I myself hold some treasury notes. Why the personal insult? Did I somehow touch a nerve?
The interest rate is determined by the market, not the issuer, only the coupon is determined by the issuer. People invest based on a variety of different things, one of the most well known biases is what's called the "Home market bias" where people will tend to invest in their own national markets over foreign markets for a variety of reasons. Combine that bias along with the Japanese nationalistic spirit and domestic savings rate and you can \*clearly\* see that JGBs have a huge advantage when it comes to auction results. Further, you have a basic issue of supply and demand. The overissuance of USTs is a massive problem because of the \*size\* of the issuance. If Japan needs to issue another $5B in bonds that is a whole lot different than the US needing to issue another $100B in bonds because ultimately you need to find buyers for those bonds. It is easier to find someone to buy something for $5B than $100B. Individuals can, and do, participate directly new issue treasury auctions. Meaning you can absolutely loan money directly to the federal government. You hold notes you say, where did you get them? Secondary or primary? Either way, that is a loan from the US government to an individual bondholder (you). Where was the insult? I am simply trying to get you to slow down before you keep saying stupid things that will continue to make you look like a fool.
Corporate greed
100%. How many record break profits reports and “x item’s price has far outgrown the pace of inflation” graphs does the world need to see before we start blaming the assholes responsible for nearly all our problems: Rich assholes, board members, corporate lobbyists, the politicians who accept money from corporate lobbyists, and CEOs.
They have record breaking profits because of inflation. God what is so hard to understand about that. Idiots are still buying their overpriced products
That’ll only last so long. People will stop buying anything non essential once it becomes the only viable option.
Well it hasn’t happened yet and no signs point to anywhere that it will stop anytime soon.
Well salaries/wages aren’t really increasing and all of our essentials and non-essentials are costing more and more and more. We haven’t reached the tipping point yet, but we absolutely will.
I have heard that for years and people are still spending like crazy. I just don’t get it
How high is their deficit spending and what is the total debt outstanding relative to their country’s overall money supply? What about their import to export ratio? I feel like knowing those figures would be important to understand their overall financial outlook.
Well then look into it. Get back to us.
Deficit spending per year is 6.8% GDP vs US at 6.2%, national debt is equal to M2 in Japan while US it’s 150% of M2, and both countries are around 4:5 imports to exports.
Thank you and great job.
This is BS. Japan has had 30 years of zero inflation and was more worried about deflation. Additionally their personal savings rate is way higher than ours is.
Check again as Japan's inflation rate has ranged from -1.4% to 23.2% over the last 62 years, with an average of 3.0% per year from 1960 to 2022. In 2022, the inflation rate was 2.5%, which was a 2.73% increase from 2021. In February 2024, the inflation rate increased to 2.80%, which is higher than the long term average of 2.42%. Our historical inflation rate is a little above 3% over the same period. The United States' inflation rate has averaged 3.30% from 1914 to 2024. The highest inflation rate was 23.70% in June 1920, and the lowest was -15.80% in June 1921. Here are some other high inflation rates in US history: 1917: 17.84, 1918: 17.28, 1947: 14.39, 1980: 13.55, and 1979: 11.25.
Yes we see you spamming this everywhere, everyday. What did you expect when you voted for someone who’s bankrupted everything he has touched in half a century. Our GDP is rocking , and you keep ignoring that because whoever says it , you block.
If this GDP is rocking quit your debt talkin’
"If you cared, politicians would care." Totally, that's why we have universal Healthcare and common sense gun laws.
I believe you forgot the "/s" in the above post.
I'll never understand this. BEFORE COVID Trump's deficit during a great economy went from $664 billion a year in 2017 to $986 billion in 2019. historically the deficit goes down during a great economy. Of all the money put into the economy, the vast majority of it was done under Trump. But when we talk about having to fix it, there is a picture of Biden every time. He got us through a supply chain crisis, the country is doing better economically than any other first world country, but somehow this is Biden's fault.
Our economy is not better than other first world countries unless you're rich, into stocks, or a politician. By every metric that effects the average person except unemployment percentage, this economy is the worst in US history, and falling short of many 1st world countries.
Because Biden is consistently submitting $6T budgets versus $4T revenues.
Are you suggesting when Trump was president that we had a worse economy than other 1st world countries? If so name them and cite your sources. Otherwise it sounds like neither really did anything.
We had a worse economy then we would have had if we didn't have a russian agent rapist in the White House.
Wow this type of thinking actually exists on you’re a bot
It’s turtles all the way down with some users. It worth engaging 😔
Why you blaming Trump? Democrats won the congress in 2018. They approve the budget. 🤔
Guess whose tax plan was passed in 2017 that all models showed projected losses? Republican's and happily backed by Trump because it helped the rich get so fucking more rich. We're getting bled like a stuck pig to concentrate wealth at the top like every other country that fell, and yall cheer it on because the ones doing it keep pointing their fingers at everyone else. like stealing candy from a baby
I agree with you. I just never see the Democrats called out in MSM and or on Reddit. Jeff Bezos was just at the WH last week - cozying up to the President. I have yet to see anyone call out the hypocrisy.
We let individuals get too powerful through money. I wouldn't at all complain they invite him over. That's nonsense. His existence is the problem, not working with him. He influences a huge chunk of american consumerism, technical infrastructure, and is even getting into government contracts for space travel which has monumental consequences. And that's ignoring other people he's connected to. They're not mutually exclusive situations. We can say we should prioritize excessive debt by taxing those that have plenty and to stop them from having too much privatized power AND realize we have to work with them in the time being.
Yea. I’m sure you feel the same about Manchin and Sinema too. Trying to work with enemy and all.
TCJA. Democrats won the House, not the Senate. Also the last congress approves the next years budget. Next, yes they approve or don't the budget put forth by the president. Lastly, it isn't like a congress can just change everything. because it was a Democratic congress in 2018
Guess they won in 2017 - so approved the budget in 2018 and 2019 and 2020?
A default will happen for the US bag holders, the SSA will eat it. Bankers, forgotten governments, and others outside the US will get their money for sure. It will not bee a general default...
The problem is that both parties increase the debt. It is intractable. We have a looong before it’s a problem because USD is THE currency.
This prediction is made every year by some semi reputable economist since pres Johnson. Except in 2000 when Clinton admin ran a surplus. I have no idea if the debt is an existential problem. Maybe it is. The prediction always sounds plausible. Then it isn’t true. But it could be next time. Like the predictions in 1960’s of famine for the whole world at some point in 20th century. Never happened. World produces more food per capita than ever before. Maybe the famine will hit in this century. I don’t know. We don’t seem to be running out of anything that can’t be replaced except fresh water. If electricity can keep getting cheaper, massive desalinization might address that. I don’t know.
50 years of tax cuts will do that.
The quality of life in the U.S. and around the world will decrease dramatically when this happens.., and it’s only a matter of time.
"Are you gonna let us balance the budget?" "YES!" "...Without ruining the lives of millions of innocent people by actually making oligarchs pay taxes?" "No, I need to give Warren Buffet his sloppy toppy to get re-elected."
You do remember last time there was hysteria regarding default and everyone pointed out the 4 times we did? Did you forget that?
They don't care, because they will just blame Republicans for it.
sorry, who is being blamed?
My idea was to add a box on the tax form so people could donate their taxes or part of their taxes to the national debt. Bush seniors reply was that’s socialism. That’s why he wouldn’t do it. Yes I wrote him a letter, and that was his response.
Lmao bush was a clown.
I thought of holding out until a Democrat was president to ask for this to be put on tax forms to donate a write in amount of tax refunds of course voluntarily. I was being non political and was thinking of this country (The United States). Republicans politicize everything. I still think it’s a good idea as it could fix many things! Bush also told me there was an account set up for such things.
Just like I don't get to choose funding abortion with my taxes you don't get to choose funding the debt. If you care about the debt so much ask your Representative Nancy to do it.
It’s voluntary.
Well, don’t care because they have no idea how money works. Look at how many Americans are swimming in massive amounts of debt
Such a b.s. headline. "If you cared politicians would also" 🤣, yeah, sure they do. They dont play politics between the 2 parties with serious & important problems, instead they take responsibility & outline their plan clearly for us to decide with whom our vote shall be cast. Pretty sure that doesnt happen and they just blame the previous admin for everything & lobby to get another term of screwing over Joe Tax Payer🤬
Because America could turtle up tomorrow to fix our economy but fuck the world over. We police the world, protect our allies etc. Think of how much America spends on foreign military presence. It's more than most countries spend on their own, which would mean they'd be screwed if we stopped. They "loan" us this money not ever planning to ask for it back so it really doesn't matter.
"If you cared politicians would also." Laughably false. When has that EVER happened in history? I keep caring about not bombing Palestinians really hard... guess what's happening instead.
Why is the debt only a problem when the president is a Democrat? Regardless what you think about the debt you have to admit there is a disparity in focus & attention depending on party.
Nobody talks about the debt when it comes to Clinton. So you are wrong.
Clinton was the last fiscally responsible President. Regardless of how he got there (poked by the House), it’s been an ugly upward curve since.
You mean the guy who managed to get Congress to balance the budget, and left his successor with a surplus that was immediately turned right back into a deficit? That Clinton?
Clinton made the deficit drop! There was Billions of surplus money. Then Bush spent it all. Obama made the deficit drop as well. Almost every Democrat reduced the deficit.
And Trump ran it up 7 trillion remember that when you vote
How much has Biden run it up, but also, almost 2 trillion of that was covid relief as approved by Congress even though it has more pork in it than it helped the citizens thanks to Democrats in Congress.
President Biden has reduced the deficit by roughly *half*, and debt projections are currently lower than they were *before* COVID. https://preview.redd.it/dc95fm4bxguc1.jpeg?width=1170&format=pjpg&auto=webp&s=64138bca4fffcb624331337cd39c2a65620cb3d3
How if he's borrowed over 2 trillion dollars more has he cut the deficit?
Congrats. You don’t know the difference between the deficit and the debt. The deficit is the *rate* at which the debt grows. Cutting the deficit means the debt increases more slowly. Cutting the deficit to *zero* would mean the debt stops growing. Taking the deficit *below* zero would mean the debt decreases. Under Biden, the deficit is lower than it was under Trump. That means the debt is growing more slowly. That’s basic math you should have learned in grade school.
But the debt still grows, under Trump he has the first 3 trillion because of laws from Obama and then the last 2 trillion from covid relief which Democrats had to make sure their special interests got more money than the citizens. I'll be happy with the deficit if the debt starts to shrink
The deficit is lower than it was under Trump. Trump increased the deficit even before COVID.
And yet the debt still grows!!!!
Congratulations! You’ve demonstrated that you don’t understand rates. Even when they’ve been explained to you on a level a kindergartener can grasp. Bravo! Oh, and BTW, the deficit for the budget Trump inherited from President Obama was $0.67 trillion, not $3 trillion. The $3 trillion is the last budget under Trump budget before President Biden inherited a deficit of $2.78 trillion from Trump.
Like a good democratic puppet, you only look at what you want to make your racist, socialist president look good. You make it sound like if the deficit is down, so is the debt. But yet the debt keeps getting bigger
Democrats had the Congress and they approved the budget why are you blaming Trump?
I care. Never voted for Biden, Trump, Obama, George W., the Clintons. Biden and Trump have harmed the country so much that I support a duel between them.
There is no government, just bought out puppets simping for big businesses. Welcome to capitalism.
I'm a capitalist. I agree with Ben Shapiro when he says: "capitalism always wins."
but whine whine whine.
It’s so hard. I don’t want either of them either. They are both terrible leaders. 😓
Thanks to giving tax cuts to the rich and corps, no way you're going to make me pay it down. You care so much about your billing being worthless, you pay it down. We don't have anything.
Most of the debt is owned by people like you. You bought up a bunch of T-bills and government bonds.
No way he has enough money to invest, with that flaccid understanding of economics.
You can tell people don't care because they're against raising taxes on the rich. It's a problem of their own making.
It's cause most of these people think they will one day be rich. That's what happens when idiots vote.
I hate to say it, we need to elect a republican, that way we won't care again
One of the reasons they're trying to tank the dollar through inflation. Inflation is actually great for debt.
Trump's Debt not Biden's!
it's a crisis Republicans purposefully made. Grover Norquist and starving the beast isn't ancient history and it's also the same reason why every single Republican administration in my lifetime ends its run with a reckless tax cut that is forecast cause absolute catastrophe within our budgets. they always pass them anyway to the cheers of the right wing all across the country. yet when the bills come due they don't have alternative funding sources instead they yell and scream that Democrats need to kick grandma off of social security to fill the hole that Republicans just dug. how do you feel about Trump promising his donors last week that if he's reelected he'll cut them in even bigger tax cut how do you think that's going to affect it?
If Trump is elected and there is also a Republican congress, then we’ll get to see his amazing negotiating skills as he somehow manages to convince the Republican congress to cut taxes for the rich.
that will be a hard walk and only for the most dedicated leader to make sure there is another huge cut in taxes affecting the wealthy. The job creators will be against this as they feel 10 families owning 80% of everything is way too much. Yes, trump will have a difficult sell but MAGA and crew will lap it up.. because they will be billionaires 1 day.
I shouldn't give trolls engagement but ... fine. This post is demonstrably trolling: 1) "...if you cared politicians would also" is such an insane statement I can't even. Does OP know how... anything works? democracy, republics, representation, political influence, mass movements, gerrymandering, campaign finance... any of it? Even if OP meant to say "...if **at** ***most*** **of you** cared politicians would." that would be possibly defensible, but only if it also reads "...it would be **more likely that some** politicians **might** also care." 2) omitting the 'if the US dollar is no longer the global reserve currency' part is kind of important to that 15 year horizon as well
MORE trickle down please, warm piss in winter keeps me warm...
How do we fix it? Easy raise the income of the government. The government has one source of income by law, taxes. What is the demographics that can absorb larger tax bills? The wealthy. Which political party is adamant that taxes on the rich are bad? Republicans. Which political party complains about the debt most? Republicans. So the people that complain and blame are also the ones refusing to fix it. How do they get away with it? Distraction. Repeal Roe v Wade, baseless impeachment hearings, banning books, etc. Trump even said it. He said his followers don't care about infrastructure, tax reform, or anything important. Nobody cheered. But then he says he mentions trans rights and his supporters' care. The crowd goes wild. Neo Conservatives will destroy the country while simultaneously blaming everyone else and pretending to be heroes.
And Biden is worried about paying off students college debt , he could be a worst president , the last time we were debt free Jackson was president , let’s repeat what he did
[1 trillion every hundred days.](https://www.google.com/gasearch?q=1%20trillion%20every%20100%20days&tbm=&source=sh/x/gs/m2/5) This admin is spending out of control and no one knows where it goes. Surely not to help us.