Is U.S. Debt a Problem?

Discussion in 'The Economy' started by Falcon, Mar 20, 2017.

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  1. Falcon

    Falcon Major Staff Member Social Media Team

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    Former Federal Reserve Chairman Alan Greenspan said that:

    "The United States can pay any debt it has because we can always print money to do that. So there is zero probability of default"



    Normally debt for a country is a problem, but does that apply to the U.S. whose currency is the world reserve currency? Countries, investors, and other people all over the world hold U.S. dollars in effect sucking our debt for U.S. so we can print more. In addition if we default on the dollar everyone else in the world that holds the dollar is screwed.

    Is this possible:

    [​IMG]

    Or will it always be this:

    [​IMG]
     
  2. YarS

    YarS Lieutenant Colonel

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    Ha! New way to nullification of US debt.
    https://uk.news.yahoo.com/mnuchin-threat-china-over-north-143833190.html
    1. Say that DPRK is bad.
    2. Demand from China to stop trading with them.
    3. After China's refuse declare sanctions against China.
    4. "Freeze" Chines actives in USA, including US-debt.
    5. ....
    6. PROFIT!!!
    7. Repeat with other countries.

    But it will be funny to watch, how US will live without Chines goods.
     
  3. BlueHawk

    BlueHawk Captain

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    @YarS As far as i see it. As long America have Europa countries and Japan support. American can do what they want. Even China cant do any ting. Russian have learn that.
     
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  4. YarS

    YarS Lieutenant Colonel

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    May be. May be not. Europe and Japan without Russia and Middle East will die from energy hunger. Without China - they will lost technologies. Without Korea and Bolivia - they will be not able to play in "Green Technologies".
    Watch how Germanies are in contrary ti stop an oil and gas trade with Russia. If USA will say them to really stop trading with Russia and China in dollars, what will they do? Right, they will buy roubles and yuans and continue to trade.
     
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