Our Debt Economy

This nation has worked with a huge debt for decades…..debt being we spend more than we take in….and that is the result of those massive tax breaks and cuts that only assist the wealthy…..

And soon, probably after the next election, the GOP will return to the same lame bullshit about the debt and will demand tax cuts to get it more in line with their philosophies…..while their man in the White House is pissing money away it is some how not that important…..just wait.

This country runs on a debt economy…..

All the economic forces of the state—of both governments and central banks—must be mobilised to ensure its continued accumulation of wealth through the provision of endless supplies of money to boost share prices and other financial assets.

This was set out most clearly in a note issued earlier this month by JPMorgan Chase, reported by Bloomberg. The note said that extremely loose monetary policy—the maintenance of ultra-low interest rates and massive purchases of debt by central banks—would have to be continued for a long time.

“More debt, more liquidity, more asset reflation” was the bank’s conclusion. According to one of its leading strategists, Nikolaos Panigirtzoglou, there will be a $16 trillion increase in debt this year, taking the total amount of private and government debt in the global financial system to $200 trillion by the end of the year.

https://www.wsws.org/en/articles/2020/07/14/debt-j14.html

A bit more information on a debt economy…looking from the UK…..

There is no limit to the quantity of money that can be created by a central bank such as the Bank of England. It was different in the days of the gold standard, when central banks were restrained by a promise to redeem their money for gold on demand. But countries moved away from this system in the early part of the 20th century, and central banks nowadays can issue as much money as they like.

This observation is the root of modern monetary theory (MMT), which has attracted new attention during the pandemic, as governments around the world increase spending and public debts become all the more burdensome.

MMT proponents argue that governments can spend as necessary on all desirable causes – reducing unemployment, green energy, better healthcare and education – without worrying about paying for it with higher taxes or increased borrowing. Instead, they can pay using new money from their central bank. The only limit, according to this view, is if inflation starts to rise, in which case the solution is to increase taxes

https://theconversation.com/modern-monetary-theory-the-rise-of-economists-who-say-huge-government-debt-is-not-a-problem-141495

The National Debt is only a problem when a Dem is in the White House and they can be blamed for all the GOP overspending.

There is a solution!

Stop worthless tax cuts and force those making billions into paying their share of the taxes……tax cutting has accomplished NOTHING for this country…..just keeps the wealthy in cigars and yachts.

I Read, I Write, You Know

“lego ergo scribo”

4 thoughts on “Our Debt Economy

  1. The GOP threw frugality and fiscal responsibility away long ago, but now it had abandoned most of its beliefs in fidelity and character when it embraced a liar, cheat, and philanderer as its nominee and then no President.

  2. Britain also has what are called ‘unrecoverable’ debts. It seems that the country cannot exist long enough to ever repay the amount of debt it currently owes. Like the USA, it keeps borrowing more, the most recent example being the huge debt incurred to finance the Covid-19 programme. It makes me wonder who had all this money to lend to them in the first place.
    Best wishes, Pete.

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