We’ve always told ourselves this, which is why it’s a problem
Think of it more like a home equity loan. We’re living beyond our means so taking a loan out in the value of our house to pay for it. As we want more stuff, we just take out more of the home equity loan to pay for it. I have $10 but want to buy eggs, so I spend an additional $2 from the home equity loan
We live in the biggest house on the street so people are claiming we can live way beyond our means, unlimited. But there’s always a limit.
But the limit is whenever the bank says it’s too much and we don’t know ahead of time what that is
our loan relative to house value is bigger than some who were foreclosed on
our payments to those loan is one of our biggest expenses, making it more difficult to afford anything else.
Is that too much? Not yet, but it’s stupid to keep pushing the limit just to make a few billionaires richer
… and we benefit from being the worlds reserve currency, or we used to. It would be really stupid for a government to mess with that by being isolationist, blanket tariffs and other trade barriers ——- back to the analogy is that our home value is propped up by fantastic landscaping. But we’re letting it goto seed and parking some rusted out cars in the yard, while still claiming we have the best yard in town
It’s more like a business loan. Actually, that’s exactly what it is, is a business loan.
The influx of money has allowed more things to happen that will generate profit through economic activity to pay off the business loan.
The big number bad thing is pushed to make everyone think that America is in financial trouble and therefore makes it easier for them to swallow that they are living in some form of poverty.
That $30 trillion is the value of the economic powerhouse that is America.
It’s made to look bad when it is actually good, as long as it is moderately reasonably managed.
The thing is, is we will never pay off the debt.
Paying off this debt would be bad for America.
Even if we did pay it off for some reason, we would immediately begin to accrue more debt because that debt is the cash value of the money influx that we are using to do amazing things, the same way a landlord would not just pay off their rental properties, but would instead, if they found themselves with a paid off rental property, remorgage it, and use the cash value of that remorgaging to purchase another rental property.
And it is also useful as a lie to control the population and to make them think that America has financial problems and therefore to tolerate a little bit more misery in their own lives when it’s completely unnecessary for people to be financially miserable.
That misery only serves to increase the happiness of the people who are aware of the fact that it is a lie and have used the lie to benefit themselves.
We’ve always told ourselves this, which is why it’s a problem
Think of it more like a home equity loan. We’re living beyond our means so taking a loan out in the value of our house to pay for it. As we want more stuff, we just take out more of the home equity loan to pay for it. I have $10 but want to buy eggs, so I spend an additional $2 from the home equity loan
We live in the biggest house on the street so people are claiming we can live way beyond our means, unlimited. But there’s always a limit.
But the limit is whenever the bank says it’s too much and we don’t know ahead of time what that is
Is that too much? Not yet, but it’s stupid to keep pushing the limit just to make a few billionaires richer
… and we benefit from being the worlds reserve currency, or we used to. It would be really stupid for a government to mess with that by being isolationist, blanket tariffs and other trade barriers ——- back to the analogy is that our home value is propped up by fantastic landscaping. But we’re letting it goto seed and parking some rusted out cars in the yard, while still claiming we have the best yard in town
It is nothing like a home equity loan.
It’s more like a business loan. Actually, that’s exactly what it is, is a business loan.
The influx of money has allowed more things to happen that will generate profit through economic activity to pay off the business loan.
The big number bad thing is pushed to make everyone think that America is in financial trouble and therefore makes it easier for them to swallow that they are living in some form of poverty.
That $30 trillion is the value of the economic powerhouse that is America.
It’s made to look bad when it is actually good, as long as it is moderately reasonably managed.
The thing is, is we will never pay off the debt.
Paying off this debt would be bad for America.
Even if we did pay it off for some reason, we would immediately begin to accrue more debt because that debt is the cash value of the money influx that we are using to do amazing things, the same way a landlord would not just pay off their rental properties, but would instead, if they found themselves with a paid off rental property, remorgage it, and use the cash value of that remorgaging to purchase another rental property.
And it is also useful as a lie to control the population and to make them think that America has financial problems and therefore to tolerate a little bit more misery in their own lives when it’s completely unnecessary for people to be financially miserable.
That misery only serves to increase the happiness of the people who are aware of the fact that it is a lie and have used the lie to benefit themselves.