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sleepy jack · 02-17-2009, 01:05 PM

Then why has the chart been going progressively upwards when, in fact, there's been several deflationary periods (after 9/11 was a big one, it was a larger dip than we ever had in the nineties...which is odd considering that chart shows we've been making a steady progression upwards) and it doesn't even show those. I do question the validity of that chart because (ignoring the fact it's from a site that wants you to sell them your gold and silver NOW NOW NOW) it isn't accurate when you cross reference it with charts from sites that end in .gov (which I'd consider legitimate).

It's incredibly unlikely that the rest of the world will stop buying bonds from the US. We are never going to pay off all our debt of course but one simple fact you're ignoring is that every industrial nation has a large amount of debt (roughly similar to the amount they export in fact.) Admittedly, the Iraq War and Greenspan's Y2K housing bubble drove ours to abnormal amounts but the Republican alternative to this was tax cuts (which also amass a larger amount of debt overtime than the Democrats stimulus package) and the idea behind the stimulus package once our economy comes back (and the assumption is that this stimulus package will do so and seeing as it will actually create millions of new jobs and so on and encourage people to start buying again there's no reason to believe the economy will get worse) we can start paying off our debts and we have decades to do it.

Here's why it's ironic for you to criticize me for not understanding "basic economics." You're assuming that printing money (which were not doing as long as the rest of the world buys our bonds) decreases the actual wealth of a country, it doesn't. Does it devalue the currency? Yes but that's a very relative thing ... because there's more currency to make up for it and the actual wealth of a nation, in both Adam Smith terms and Mercantilism terms hasn't changed at all. It stills the same. It's stupid to worry about, especially considering our inflation rate is only at 7%. We're not Zimbabwe and the government isn't full of idiots who are going to print off a trillion dollar bill just for shits and giggles.

02-17-2009, 01:05 PM	#114 (permalink)
sleepy jack isfckingdead Join Date: Nov 2004 Posts: 18,967	Then why has the chart been going progressively upwards when, in fact, there's been several deflationary periods (after 9/11 was a big one, it was a larger dip than we ever had in the nineties...which is odd considering that chart shows we've been making a steady progression upwards) and it doesn't even show those. I do question the validity of that chart because (ignoring the fact it's from a site that wants you to sell them your gold and silver NOW NOW NOW) it isn't accurate when you cross reference it with charts from sites that end in .gov (which I'd consider legitimate). It's incredibly unlikely that the rest of the world will stop buying bonds from the US. We are never going to pay off all our debt of course but one simple fact you're ignoring is that every industrial nation has a large amount of debt (roughly similar to the amount they export in fact.) Admittedly, the Iraq War and Greenspan's Y2K housing bubble drove ours to abnormal amounts but the Republican alternative to this was tax cuts (which also amass a larger amount of debt overtime than the Democrats stimulus package) and the idea behind the stimulus package once our economy comes back (and the assumption is that this stimulus package will do so and seeing as it will actually create millions of new jobs and so on and encourage people to start buying again there's no reason to believe the economy will get worse) we can start paying off our debts and we have decades to do it. Here's why it's ironic for you to criticize me for not understanding "basic economics." You're assuming that printing money (which were not doing as long as the rest of the world buys our bonds) decreases the actual wealth of a country, it doesn't. Does it devalue the currency? Yes but that's a very relative thing ... because there's more currency to make up for it and the actual wealth of a nation, in both Adam Smith terms and Mercantilism terms hasn't changed at all. It stills the same. It's stupid to worry about, especially considering our inflation rate is only at 7%. We're not Zimbabwe and the government isn't full of idiots who are going to print off a trillion dollar bill just for shits and giggles.