/biz/ - Business & Finance

>>56724543
its not

>>56724543
This is fine. Nothing to see here. Bonds can issued to pay for bonds, that is never going to be a problem and will definitely not negatively affect dollar-value.

>>56724543
Nah bro it's chill. The US gov knows what they're doing. Say, did you check out that new show on Netflix yet?

>>56724543
Pamp it

>>56724543
it might not be a problem if something like AI 10x the national GDP in the next 30 years. The GPD went from 12 to 24 Trillion in the last 10 years. It could ramp up big time and the debt won't grow as fast the ratio of debt to GDP will lower.

This is basically how nations have always "paid down" the national debt by barely paying it down ever and just waiting it out for their economies to grow. In other words the name of the game is service the debt and let the economy grow as fast as possible(partly because of all the debt stimulus) I mean there's a reason why America has a very dynamic corporate and start up culture and finance and everything else. That's partly due to policies from the government/central bank that keep the fire running as hot as possible and when the flames get too hot they try a bunch of shit to cool it down.

Yea it could all come crumbling down one day but things are going pretty good. The average American has no idea how much better life is today compared to any other time. They just regurgitate crap they consume online and on tv

>>56724634
things are worse than they were 10 years ago, fuck off

>>56724634
Then part of whether or not it becomes a problem might have to do with what percent the service of that debt is of federal spending or of the GDP, right?

>>56724634
Lol that's not how it worked at all.
Do you know why the french revolution happened? Because the french state took a shitton of money to bankroll the american revolution and fight the british on the sea.
The interests on the debt were so bad they had to have "Etats Generaux" which was basically calling everyone in the kingdom to a meeting so they could agree to pay up. This ended up blowing up the entire country.

We have too many economically illiterate leftists retards in politics these days with no concept of responsibility.

>>56724634
most retarded post I've had the misfortune of reading in a while.

>>56724634
You should look east to see how debt ravages a country. Japan and China are no longer flourishing. I don't know why you're so in love with debt when it famously fucks over people's lives as well as entire countries.

Pic unrelated, it's suicide rates of US teens over the past years.

>>56724543
Okay but what about adjusted for CPI

>>56724930

>>56725001
That's GDP and I was making a joke.

>>56724634
Found the typical stock market participant.

>ai can 10x the gdp.

Retarded. I bet you think green energy will replace combustion engines and we can mine asteroids in the next ten years as well.

>>56724828
Except now it's all priced in lmao

>>56724566
>>56724592

>>56724634
famous last words
this post makes me think next year is the actual implosion, you're giving off the most "top signal" I've ever read on this website

>>56724634
>everything may have went up 100% in two years and you have only gotten a 3% raise but don't worry because mega corp numba go up.

>>56725315
Is the next crash priced in?

>>56724543
Zoom in

>>56724543
I'd imagine the debt itself is not the major issue since they can simply refinance it with new debt indefinitely. The problem is the interest on top. How is that paid off? If it's paid through taxes, then the remaining deficit is paid with more debt, right?
So high debt along with increasing interest rates would mean the debt grows faster. In other words, inflation speeds up.
Is this correct? So if they lower rates, we get more loans and higher inflation. If they raise rates, we get faster growing debt and higher inflation.
BUT, if something breaks and debts cannot be paid off, then maybe a large amount of defaults would significantly lower dollar supply & overall debt.

>>56724543
Uncharted waters I can tell you though the course is definitely not going to change until it all collapses

It wasn't a problem when rates were near zero but with them being close to 6% now and trillions of dollars of debt maturing, its a massive fucking problem that the political class has no idea how to fix.

Countries are already dumping the fuck out of US bonds because of how fucked the situation is

>>56724908
The biggest cause is surburbia and localized debt because of it.

>>56724543
Now adjust it for the value relative to inflation.