CDZ Is the U.S. like Germany in 1928?

Discussion in 'Clean Debate Zone' started by jwoodie, Aug 12, 2019.

  1. jwoodie
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    jwoodie Gold Member Supporting Member

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    In 1928, Germany was experiencing a period of prosperity after recovering from WW1 and borrowing huge amounts of cash from the United States. Beneath this veneer, there was serious political turmoil as communists and fascists battled in the streets. Then the stock market crash of 1929 caused the U.S. to call in all of its loans and create an even greater economic depression in Germany, thereby destabilizing its government and paving the way to dictatorial rule.

    Is the U.S. poised to repeat this experience? We too are experiencing a period of prosperity based on unsustainable borrowing from other countries, and also with an unprecedented level of political rancor and divisiveness.

    What might happen if the world's economies all contracted and our public credit sources all dried up? Would our money be reduced to the value of wallpaper? Would our democratic institutions survive the ensuing public unrest?

    Is this scenario completely improbable, or is it too horrible to contemplate?
     
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  2. deanrd
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    deanrd Gold Member

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    Back then Germany was all white.. Like the Republican Party.

    But today, we have a political party, the Democrats, that look like America.
     
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  3. WillHaftawaite
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    WillHaftawaite USMB Mod Staff Member Gold Supporting Member Supporting Member

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    BULLSHIT
     
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  4. alang1216
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    alang1216 Pragmatist

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    Over 25% of US debt is owed to foreigners with China holding almost 10% by itself. If they wanted to hurt us and didn't care about hurting themselves, they might begin selling our debt. If Trump can't get a trade deal, selling just before the election may allow them to get rid him. We'd all be hurt but China may feel justified and they don't have to answer to their own people.
     
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  5. gtopa1
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    gtopa1 Platinum Member

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    And if they sell the debt at a loss...so??

    Greg
     
  6. williepete
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    williepete Platinum Member

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    Yep. There's an old saying that goes something like, "If I owe you one thousand dollars, I have a problem. If I owe you one million dollars, you have a problem."
     
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  7. alang1216
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    alang1216 Pragmatist

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    Basic econ. If they sell, we'll have to pay more interest and our debt burden will grow. We'll have less money and more inflation.
     
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  8. alang1216
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    alang1216 Pragmatist

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    Unless hurting you is worth a million to me, then it is your problem. The China are very good at long-term planning.
     
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  9. diver52
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    diver52 Member

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    I think there are key differences, particularly in the stability of the government. The German government was brand new without the institutions needed to keep it going. It was simply not strong enough to withstand the collapse. The US went through much the same thing at the same time and we survived. We survived a civil war. There could be hard times ahead, but that won't kill us.
     
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  10. MarathonMike
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    MarathonMike Platinum Member

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    Oh that's a relief. So having more skin tone variation in the Democratic Party will keep us from economic collapse.
     
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