Can the US pull out of its economic death spiral?

[jwoodie]

In rough terms, the US will soon be spending $1 trillion a year on servicing its debt, $1 trillion on essential operations (military, etc), and $1 trillion on social spending. Its tax rate revenue is realistically limited to about $1 trillion a year. Even a 50% cut in non-debt spending will not stop it from borrowing an additional $1trillion every year. As soon as an alternative reserve currency is adopted, the dollar will plunge in value and take the US standard of living with it. Can anything be done to stop this economic death spiral?

One solution would be to effectively declare bankruptcy by renouncing all current debt. Ironically, this would hurt the big financial institutions more than the average citizen. While this would drastically reduce our ability to borrow more money, it would also allow us to devalue the dollar to a sustainable level going into the future. At that point real economic growth (i.e. productivity) might allow us to eventually regain true prosperity.

What do you this of this solution? Do you have a better one?

 

[Sixties Fan]

In rough terms, the US will soon be spending $1 trillion a year on servicing its debt, $1 trillion on essential operations (military, etc), and $1 trillion on social spending. Its tax rate revenue is realistically limited to about $1 trillion a year. Even a 50% cut in non-debt spending will not stop it from borrowing an additional $1trillion every year. As soon as an alternative reserve currency is adopted, the dollar will plunge in value and take the US standard of living with it. Can anything be done to stop this economic death spiral?

One solution would be to effectively declare bankruptcy by renouncing all current debt. Ironically, this would hurt the big financial institutions more than the average citizen. While this would drastically reduce our ability to borrow more money, it would also allow us to devalue the dollar to a sustainable level going into the future. At that point real economic growth (i.e. productivity) might allow us to eventually regain true prosperity.

What do you this of this solution? Do you have a better one?

Thank you for showing an absolute lack of knowledge of how the US economy works, where it stands.

It is doomsday. Why? Because it is a Democratic President. Because there are two wars the US, and others, are helping.

Well, we will just sit down and watch this non happening not happen.


My solution is to not talk about things I do not understand or know nothing about, but hear from others which make too many people scared to death, because they understand nothing about it.

 

[Crepitus]

In rough terms, the US will soon be spending $1 trillion a year on servicing its debt, $1 trillion on essential operations (military, etc), and $1 trillion on social spending. Its tax rate revenue is realistically limited to about $1 trillion a year. Even a 50% cut in non-debt spending will not stop it from borrowing an additional $1trillion every year. As soon as an alternative reserve currency is adopted, the dollar will plunge in value and take the US standard of living with it. Can anything be done to stop this economic death spiral?

One solution would be to effectively declare bankruptcy by renouncing all current debt. Ironically, this would hurt the big financial institutions more than the average citizen. While this would drastically reduce our ability to borrow more money, it would also allow us to devalue the dollar to a sustainable level going into the future. At that point real economic growth (i.e. productivity) might allow us to eventually regain true prosperity.

What do you this of this solution? Do you have a better one?

"economic death spiral"?

Where?

 

[Donald H]

In rough terms, the US will soon be spending $1 trillion a year on servicing its debt, $1 trillion on essential operations (military, etc), and $1 trillion on social spending. Its tax rate revenue is realistically limited to about $1 trillion a year. Even a 50% cut in non-debt spending will not stop it from borrowing an additional $1trillion every year. As soon as an alternative reserve currency is adopted, the dollar will plunge in value and take the US standard of living with it. Can anything be done to stop this economic death spiral?

One solution would be to effectively declare bankruptcy by renouncing all current debt. Ironically, this would hurt the big financial institutions more than the average citizen. While this would drastically reduce our ability to borrow more money, it would also allow us to devalue the dollar to a sustainable level going into the future. At that point real economic growth (i.e. productivity) might allow us to eventually regain true prosperity.

What do you this of this solution? Do you have a better one?

I think that co-operation with China, Russia, and the Brics is the only way that America can stay in the race.

Traditionally, America has always relied on military solutions to counter it's economic inefficiencies. That road is closed as other powerful nations combined or even singly are worthy of taking on America with conventional warfare.

And now we all should know that any gains by the use of nuclear weapons, is not possible.

China and Russia are still willing, but they may not be willing partners in peace for long!

 

[Invisibleflash]

In rough terms, the US will soon be spending $1 trillion a year on servicing its debt, $1 trillion on essential operations (military, etc), and $1 trillion on social spending. Its tax rate revenue is realistically limited to about $1 trillion a year. Even a 50% cut in non-debt spending will not stop it from borrowing an additional $1trillion every year. As soon as an alternative reserve currency is adopted, the dollar will plunge in value and take the US standard of living with it. Can anything be done to stop this economic death spiral?

One solution would be to effectively declare bankruptcy by renouncing all current debt. Ironically, this would hurt the big financial institutions more than the average citizen. While this would drastically reduce our ability to borrow more money, it would also allow us to devalue the dollar to a sustainable level going into the future. At that point real economic growth (i.e. productivity) might allow us to eventually regain true prosperity.

What do you this of this solution? Do you have a better one?

Dunno. Your plan sounds as good as any. I'm no economist, so can't say. It seems either USA goes belly up or our creditors force us to go belly up. But... that is only a portion of our problems. We still have 50%+ of the country working round the clock to destroy us from within. And Peak Oil will eventually take us down even if all the dems turn into reps.

Bub...doesn't it say something to you that we don't know who is pulling the strings in D.C.? Do we ever get any leaks from the dems? Compare that to all the leaks that came out of the Trump era. Did the reps ever find out who paid for even 1 pallet of bricks for Antifa in Summer of Love 2020? How about who paid for even 1 brick??

Remember when Trump was in and the dems wanted to remove him for selling hamburgers and rooms to foreign dignitaries? Compare that to Biden who is accused of taking tens of millions of $$ and the dems won't even acknowledge it.

America only worked when it worked. Reps were only good at fighting Tipp O'Neil dems. Reps are useless for fighting new school commie dems.

Every election in America seems like America's very survival rests on the outcome. You can't run a country like that. Sooner or later, you will lose an election. Nor should a healthy country be knocking on the door of implosion every other week.

These are our choices:

1) Do nothing...live as tax slaves under perpetual dem rule and be disarmed.

2) Civil War - formal secession. Form the America First Union / Conservative States of America Union / Conservative Union...or whatever you want to call it. Dems will wipe you out with the military...which they own.

3) Informal Secession - Still form the America First Union / Conservative States of America Union / Conservative Union...or whatever you want to call it. Then disregarded Federal law as the dems have done for ages.

4) Vote dem and accelerate the collapse - may make for an easier 'peaceful' divorce. And if there is a hot civil war, dems will send in the military and wipe reps out. Reps have zero organization or $ to fight any war.

Debt or no debt...America is over! Prepare accordingly.

 

[luiza]

Can the US pull out of its economic death spiral?​

NO

 

[jwoodie]

My solution is to not talk about things I do not understand

Why don't you practice what you preach?

 

[task0778]

The current deficit for FY 2023 ending Sept 30 is approx $1.7 Trillion. Some say there's no problem, all you gotta do is fire up the printing press and create more money, or just have the Fed distribute more credit to the banking sector and add the debt to their ledger. As if there are no consequences to that approach, namely inflation. We all saw it when Congress passed stimulus payments during the Trump and Biden admins. But renouncing all current debt is not going to be the answer. And what good would it do anyway if the Congress cannot raise taxes on everyone and control it's own spending? News flash for the dems: you're not going to get anywhere near enough additional revenue from only the rich bitches. News flash for the Pubs: spending cuts in national defense will be necessary and so will tax hikes. News flash for both parties: you bastards are going to have to learn to live with a balanced budget where you don't spend more than you take in. Suck it up, dudes. Until you do, the problem will worsen; an ever-higher national debt is not a panacea that some think it is.

No US president and no US Congress is ever going to declare bankruptcy, it would be permanent political suicide. And many people say there is no legal authority to do that anyway, no statute that specifies the procedure. And I doubt if the president can do it unilaterally, citing a national emergency. Eventually something's got to give though, IMHO we are clearly on an unsustainable fiscal path with no acceptable options. IOW, sooner or later everything is going to turn to shit if nothing is done to prevent it. Raise your hand please if you think either party is going to bite the bullet for higher taxes and less spending.

"this would hurt the big financial institutions more than the average citizen." No, everybody is going to suffer, and IMHO it is usually the less well-off that suffer the most. It's probably worth saying that what we're talking about has never happened in this country and nobody really knows what the results might be. If there's one thing the pols are good at, it's kicking the can down the road for the next prez or Congress to deal with. Nobody knows when we'll finally run out of road, but I can't see any other ending.

 

[jwoodie]

"economic death spiral"?

Where?

The US: $33 trillion current debt + $100 trillion unfunded liabilities (SS and Medicare). Do you seriously think the US debt/gdp ratio is going to shrink or even stabilize? If so, how?

 

[Ringo]

On what grounds are plants, factories, energy and agricultural complexes, all kinds of transportation, communications, etc. - i.e. large means of production that can be created and put into action exclusively by the efforts of the whole society - privately owned?

 

[initforme]

If we has another great resignation that would open up jobs for people.

 

[Ringo]

 

[Woodznutz]

No worries, China doesn't hold very much U.S. debt. There are always buyers for U.S. debt, that's why we have so much debt. Most of our debt is held by our citizens and our government and the Fed Reserve. All that is needed to reduce it is the political will of the government. The government is often compared to a family that is deeply in debt. A family can cut expenses and reduce debt virtually any time it wishes, so can the government. However, as someone once stated, "America will do the right thing, but only when all other possibilities are exhausted" (or words to that effect).