Loading ...NO THE US NATIONAL DEBT IS NOT A PROBLEM AND NO THE US CAN NEVER SUFFER A HYPER INFLATION AND NO THE US DEBT IS NOT UNSUSTAINABLE
CALM DOWN..EVERYTHING IS JUST FINE !
There is a Guy named Dr. Gerry Brady who produces the Financial Weekly Substack known simply as “BOOM”
I have posted some of his stuff here in the past
Apparently He is an Australian Physician with extensive training in Economics .
He certainly has a completely different perspective on the Subject of Unsustainable US Debt that we all have been lead to believe is about to destroy the USA any day now…for the last 50 years and counting
I admit that the arcane Topic known as the Dismal Science ( ie Economics) is not at all my forte
So I like most of us hear have been lead to believe the situation with Sovereign debt is out of control and about to destroy the foundation of Civilization as it is on an exponential and “Unsustainable” Path
EVERYBODY knows this…Right ?
Well this guy says Everybody is dead wrong and he backs his point up with charts and graphs and some good old fashioned common sense
Not everyone here is ready to believe that massive US Deficits accumulating every year and the massive Debt ( 37 Trillion and counting ) is NOT in any way a Problem .
I am not saying I fully grasp all the evidence produced here by BOOM but as an eternal Optimist I am very willing to consider this !!
WHAT IF EVERYTHING E HAVE BEEN TOLD ABOUT UNSUSTAINABLE GOVERNMENT DEBT IS JUST COVID LEVEL FEAR MONGERING AND / OR JUST PLAIN IGNORANCE BY THE HIGH PRIESTS OF THE DISMAL SCIENCE
Here you go…pour a stiff one and take your time…If he’s Right then well….things look a lot better for Humanity than we Doomers have been lead to believe…and what is wrong with that ?
https://boomfinanceandeconomics.substack.com/p/lies-damn-lies-and-economics-national?
“Except in a QE program” WTF does he think happened from 2009 (when they changed bank accounting rules on their debt from mark to markt to mark to whatever and the QE I, II, III, op twist etc. for over a decade following. I believe this guy is full of MMT BS. Another result of unaccountable money creation is moral profligacy – the left’s mind fuck machine is funded with exactly what he is denying is a consequence of unaccountable currency creation – nearly everything Elon’s team is exposing demonstrates this. Another knock on effect of his debt-is-inconsequential argument is what has happened to the middle class in the US – the first people to ‘touch’ creation of new fiat (see above 2009 onward) benefit the most, the downstream effects basically create a schism between the 1-2% and the rest of the population’s economic condition. Even the WEF acknowledges this https://www.weforum.org/stories/2018/08/qe-turns-ten/. I could go on, but I quickly determined this guy is promoting MMT philosophy (Keynes’ ultimate end-game along with marxist Robert Reich https://opentodebate.org/debate/its-time-redistribute-wealth/ ). As I recall, the same people in that camp argued that the only reason QE II and III failed was because they didn’t see it through (continue) to it’s ‘successful’ end.
Thanks for your critique of this article YYZ
I am still trying to understand the logic
I am not so sure this guy is promoting MMT though
He seems to be pointing out that the Debt is owned mostly by Americans and The Government has never and will never default
He claims that Govt Debt Defaults are rare and have only been .1 % of World GDP over a long period of time
He has also claimed that the amount of QE was miniscule as a % of GDP
I dont understand all of this but I don’t see this guy as a Keyenesian
He is claiming that Money is only created by Commercial Banks ( except when QE is enacted…which is rare ) through Loans and NOT by the FED and Treasury
as well as a small % of cash created by the Mints ( coins) and Treasury ( Bills )
Good commentary and while I would agree that the previous examples in history of hyperinflation didn’t end the world, the countries/empires where they occurred seemed like it for the majority who didn’t have wealth in the form of physical gold & silver.(real money) The empires including Roman collapsed over time, and as the US, with the dollar as the global reserve currency, will also collapse, UNLESS a new system incorporating real money gets reinstituted before or while the present one fails.
I haven’t read the article (yet), but I was thinking about this claim.
Its basically arguing that Keynesian economics isn’t ready to die just yet. At least among its more fervent adherents.
Keynes said, in 1936 in the midst of a never ending Depression, that the federal government should borrow from the reeling banksters, and spend willy nilly, wherever, to revive Dormant Demand. And put that debt on the backs of Generations ToCome.
We’ve been doing that now for nearly a century. Can it continue? Maybe, if we’re the least dirty shirt.
If its to be Sustainable, our children and grandchildren will have to bear that burden.
Even if that is sustainable, is it equitable? Depends on what we leave them, I guess.
But the other question, not getting much attention, is demographics. Demographics is DESTINY.
Look at the West. Plunging fertility, household formation, and expectations.
Japan is imploding. Same with countless other countries.
Even China is reputedly in trouble by 2100 thanks to OneChild.
Then look at Muslims.
A few argue illegal immigration is even rational to solve this very problem for America.
So … is it sustainable, but only if we let Muslims and Dependent Class Hispanics foot the bill and become the New America? Is that a Satisfactory Answer to the riddle?