USA national debt

[aguero93:20]

Aren't China holding quite a bit of that US debt?

They were at one point, I think they sold a lot of it though.

 

[tolmie's hairdoo]

They were at one point, I think they sold a lot of it though.

Would make more sense. Seemed strange Trump would currently call it on if China were holding $5trillion of it.

South China Sea is where it's at!

 

[Henkeman]

Aren't China holding quite a bit of that US debt?

Would make more sense. Seemed strange Trump would currently call it on if China were holding $5trillion of it.

South China Sea is where it's at!

UK institutions will be holding a lot of it for that matter. The US is a safe haven. Hell the UK is a safe haven too for that matter, it's why the yield is low.

 

[Deleted member 77198]

Since about the 1970s capitalism has stopped working and it will eventually lead to the complete irreversible ruin of the world’s economy.

Before that happens we need to shift away from capitalism. But who will lead that and when will that be?

 

[SWP's back]

Hold on, if our major companies/ rich people hide away from paying tax why don't yours?

Well due to FATCA, all US citizens have to pay tax on earnings over $150k per year, no matter where they live. So people like Phillip Green can’t exist in theory as residency doesn’t come into it.

 

[SWP's back]

Its mathematically impossible for them to get to zero anyway, everything they borrow is at interest, there’s never enough money in the system at one time to pay all debts off. Those at the top just swapped physical Slavery for financial slavery.

You appear to not understand the terms “mathematically” or “impossible” and there’s more than enough money for it to be repaid over time.

The debt is made up of treasury notes (basically thousand dollar bills that produce an interest), every time one is issued, there’s an inflow of money to the Fed for the value. As such, of course there is enough money in the system to pay them back over time and you forget that the rate of inflation is usually around that of the note’s coupon (the interest it pays the holder each year).

 

[SWP's back]

Would make more sense. Seemed strange Trump would currently call it on if China were holding $5trillion of it.

South China Sea is where it's at!

Yes and no. It doesn’t really matter who holds it and it doesn’t greatly affect the US if China sells there notes on the secondary market (like it doesn’t affect your local BMW dealership if you sell a second hand car that you bought from them for new).

Also it’s not like China can call the debt in as they have set terms (1, 3, 5, 10, 20 and 30 years) and maturity dates.

If anything, it harms China if their policies weaken the Dollar as it reduces the value of their holdings.

 

[SWP's back]

Since about the 1970s capitalism has stopped working

Nah. You’re high brother.

 

[dennishasdoneit]

Tax cuts don't increase debt. Out of control spending by the U.S. Congress is what is driving the debt.

Sovereign or national debt is made up of two parts.
1. Debt owed held by the public. The public are those that purchase it's bonds, domestic and foreign purchasers.

2.intragovernmental debt or debt it owes to other government departments. For example, the U.S. government is raiding American citizens Social Security retirement accounts for funds. SS retirement has been paid for by taxes from American's pay cheques. Supposedly, it would be paid by with interest upon retirement in monthly payments. The money will soon run out because the government has been stealing it to fund other things.

Very worrying...

 

[Deleted member 77198]

Nah. You’re high brother.

When New York slipped on the edge of the cliff of bankruptcy in 1975, capitalism changed for good and the world’s economy spiralled into corruption at all angles and the use of war to pay for debts became a #1 bracket income for countries. That’s not what capitalism is supposed to be about, it’s stopped working.