Think big deficits cause recessions? Think again!

[Dont Taz Me Bro]

Our national debt currently sits at a little over $19 trillion. How much is too much?

People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.

​

 

[Dovahkiin]

Our national debt currently sits at a little over $19 trillion. How much is too much?

People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.

​

Oh, what a brilliant refutation of my post. Notice how you refuse to dispute anything I've said.

 

[Dont Taz Me Bro]

Our national debt currently sits at a little over $19 trillion. How much is too much?

People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.

​

Oh, what a brilliant refutation of my post. Notice how you refuse to dispute anything I've said.

I have a Master's Degree in business and what you have said conclusively is that you don't have the slightest fucking understanding of what you're talking about and I'm not wasting any further time on you. There is that old saying about never arguing with a fool.

 

[Dovahkiin]

Our national debt currently sits at a little over $19 trillion. How much is too much?

People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.

​

Oh, what a brilliant refutation of my post. Notice how you refuse to dispute anything I've said.

I have a Master's Degree in business and what you have said conclusively is that you don't have the slightest fucking understanding of what you're talking about and I'm not wasting any further time on you. There is that old saying about never arguing with a fool.

OOOOHHH a degree in business? I wasn't aware a degree in business makes you a genius who knows everything about the economy. Please, refute something in my post. I'm waiting. Show off your degree!
Or are you going to continue buying into the debt fear mongering?

 

[Dovahkiin]

Our national debt currently sits at a little over $19 trillion. How much is too much?

People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.

​

So you won't even bother to refute ONE thing from the post? Fascinating..

 

[baileyn45]

Our national debt currently sits at a little over $19 trillion. How much is too much?

People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.

Our national debt currently sits at a little over $19 trillion. How much is too much?

People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.

I'm sorry but this is so simplistic that it's scary. The idea that the govt can print as much as it wants, spend as much as it wants ad infinitum is absurd. Sooner or later the rest of the world will figure out that the US dollar is a joke. I mean think about it. Why not print enough to send each american $1,000,000. We'd all be rich. No more poverty. Everyone driving a Mercedes and vacationing in the Bahamas. There are real repercussions to running massive debts and printing unabated. Just because we have yet to feel those effects doesn't mean all is well and proves nothing.

 

[Dovahkiin]

Our national debt currently sits at a little over $19 trillion. How much is too much?

People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.

Our national debt currently sits at a little over $19 trillion. How much is too much?

People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.

I'm sorry but this is so simplistic that it's scary. The idea that the govt can print as much as it wants, spend as much as it wants ad infinitum is absurd. Sooner or later the rest of the world will figure out that the US dollar is a joke. I mean think about it. Why not print enough to send each american $1,000,000. We'd all be rich. No more poverty. Everyone driving a Mercedes and vacationing in the Bahamas. There are real repercussions to running massive debts and printing unabated. Just because we have yet to feel those effects doesn't mean all is well and proves nothing.

What is simplistic about this? Tell me what I've said that's wrong. The govt has been printing for decades, and injecting into the economy. We've been fine, no reason to think it'll change. I do agree that we have to be able to manage the debt, which is why no MMT's propose unlimited printing.. I never even said we could just spend all we want either. Strawman?
(The main point is this: looking at raw debt numbers and pretending someone will "cash in on it" is absurd.)

 

[Dovahkiin]

It should be noted that I don't support constant deficit spending at all times, but when we have a trade deficit? Absolutely. When we're not at full employment? Absolutely.

 

[Dovahkiin]

Our national debt currently sits at a little over $19 trillion. How much is too much?

People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.

​

Still waiting for you to tell me what's wrong in my post. People have always said silly fear based things about the debt for decades.. true! The government can still create money with public debt.. True! The US can't default.. TRUE! (Unless we are literally stupid and play politics.) The historical record in my OP? TRUE! There is a massive difference between personal debt and the national debt, TRUE! The debt payments are manageable, virtually everybody agrees on this that aren't libertarians. The govt can still pay other obligations with the debt.. True! The surplus point? True. Deficit point? True, just look at history. Hmm... I wonder..

 

[EdwardBaiamonte]

Our national debt currently sits at a little over $19 trillion. How much is too much?

People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.

​

Still waiting for you to tell me what's wrong in my post. People have always said silly fear based things about the debt for decades.. true! The government can still create money with public debt.. True! The US can't default.. TRUE! (Unless we are literally stupid and play politics.) The historical record in my OP? TRUE! There is a massive difference between personal debt and the national debt, TRUE! The debt payments are manageable, virtually everybody agrees on this that aren't libertarians. The govt can still pay other obligations with the debt.. True! The surplus point? True. Deficit point? True, just look at history. Hmm... I wonder..

deficits are very bad. They really amount to the govt taking your money and wasting it
How can that be good?.

 

[Dovahkiin]

Our national debt currently sits at a little over $19 trillion. How much is too much?

People said the same thing when we hit 1 trillion. Same thing when we hit 5 trillion. The fear mongering over the debt needs to end. First of all, the public debt does not stop a governments ability to create and spend new money, which is important, since we Create our own currency. The US can also, literally, never default on the debt. I have made another post on this with a relevant article. (We can't default on our own obligations, so don't worry about that.) The historical evidence in my OP shows that cutting the deficit/debt doesn't really do anything good, in fact, it's harmful. Unlike personal debt, the debt people have that they seem to think the government has, the government doesn't have to worry about leveraging. The government doesn't have to sacrifice paying off bills in the future. Also, the debt payments, if you want to call them that, are very manageable right now, and will continue to be. Funny thing, the government holds its own debt, and it doesn't hinder the governments ability to pay other obligations. Let me make this clear, and you will probably call me crazy.. But: the national debt DOESNT get paid back, in fact, it's the saved dollars of people and businesses that have earned those dollars. Let's use an example: pretend you have 599 million or some random large number. Assume you don't want to spend it or invest in the market, how do you store it? Buying bonds! Oh, and interest payments, I stress for the third time, are very manageable and don't prevent the government from focusing on other obligations. I should mention government surpluses literally remove money from the economy, making them a danger for a long period of time. This is where deficits come in. Long term reduction of deficits leads to removing dollars from the economy.. Refer to the OP for the effects of this.. The Clinton surplus literally sucked dollars out of the private sector here at home, leading to a recession.

​

Still waiting for you to tell me what's wrong in my post. People have always said silly fear based things about the debt for decades.. true! The government can still create money with public debt.. True! The US can't default.. TRUE! (Unless we are literally stupid and play politics.) The historical record in my OP? TRUE! There is a massive difference between personal debt and the national debt, TRUE! The debt payments are manageable, virtually everybody agrees on this that aren't libertarians. The govt can still pay other obligations with the debt.. True! The surplus point? True. Deficit point? True, just look at history. Hmm... I wonder..

deficits are very bad. They really amount to the govt taking your money and wasting it
How can that be good?.

You're talking about a surplus. You know, the government literally sitting on collected revenue and not using it for anything useful.

 

[EdwardBaiamonte]

You're talking about a surplus. You know, the government literally sitting on collected revenue and not using it for anything useful.

no no no when the govt spends money it wastes it causing a slow down or recession, when the private sector spends its own hard earned money it does not waste it does not. Now do you understand?

 

[Staidhup]

Modern monetary theory, are you that naive or just another socialist politician pandering for votes?

 

[Staidhup]

Do yourselves a favor and compare the National debt to GDP.

 

[Harpy Eagle]

Do yourselves a favor and compare the National debt to GDP.

Like this...

 

[Staidhup]

Like this...

View attachment 670622


View attachment 670623

 

[Staidhup]

Your getting the point. At present I believe national debt to GDP is over 135%.