The US economy is like any other household that can print it's own money and owes all it's debt in that same currency...
"The fact that we are here today to debate raising America’s debt limit is a sign of leadership failure. It is a Sign that the US Government cannot pay its own bills. It is a sign that we now depend on ongoing financial assistance from foreign countries to finance our Government’s reckless fiscal policies. ...Increasing America’s debt weakens us domestically and internationally." -BHO 2006
Same sentiment expessed in 2013? Crazy talk
Then he proceeded to take the government hostage... you don't mess with muslims, tbh...
So you still think the two are the same. Question. If Reid and McConnell are able to cobble together a deal and Ted Cruz decides to hold up proceedings forcing the government to default on its debt, would you equate that to Obama and 45 other democrats voting against raising the debt ceiling in 2006?
We should just mint trillion dollar coins. Problem solved.
GOP is on the case...
http://www.cbsnews.com/8301-34222_16...n-dollar-coin/
My point is that fiscal responsibility seems to be an important problem, only when the "other" party is in the WH.
lol, someone taking Krugman's ideas seriously
fiscal responsibility lost the election... plus you pointed it out before: if Obamacare is such a ticking time-bomb, why is the GOP immolating themselves over it?
When Obama and the democrats voted against increasing the debt ceiling, the budget deficit was increasing. The budget deficit is now decreasing and has been for the last 4 years.
The fiscal problem really boils down to what each party wants to cut... it's as simple as that. It's not that there's not a concern, it's that where the cuts should be are polar opposites on both parties.
I don't disagree with this
Yep, but the amounts we spend on defense vs en lements have flipped upside down since the mid 1950's.
We had a bipartisan balanced budget a mere 13 years ago. When there's good will, there's a way. But there's no good will at this time.
This is true. There is no good will, but it's not one-sided.
Who said they did?
If you think a Frkn household is a good model for how the US government manages its money you are a dolt.
This ridiculously simplistic analogy put forth by republicans is disingenuous and dangerous when dealing with an ignorant public like yourself.
It never is, but there's only one team actively sabotaging those from their own team that want to sit down and talk.
And I'm not pointing this out merely as a 'blame game'. What it's happening to the GOP is being done by the GOP itself and it's toxic as .
Nothing like a good old fashion game of economy chicken
Do demonmrats know how to play chicken?
I never said it was a good model. I said the economic principles are the same.
Analogies illustrate complex concepts in simple terms that people can understand.
But the principles are the same.
There is only a finite amount of in the world to buy at any price.
Printing money doesn't change that.
It just everyone besides the person who gets the money first poorer.
But have fun being an apologist for our banker overlords.
Last edited by angrydude; 10-16-2013 at 02:12 AM.
But the economic principles are not the same....
For an en y that does not control the currency of it's debt (a household, a state, Greece, etc) " hitting the fan" means bankruptcy.
For an en y that does control the currency of it's debt, " hitting the fan" means something completely different: inflation (because since they can issue as much phony money as they want to pay off their debt, they effectively cannot go bankrupt. But more issuing leads to value liquidation of the currency, which leads to increased cost of goods => inflation).
What people have been trying to say here, is that the analogy is crap, because it literally is apples and oranges. And it only took 2 paragraphs to explain what is the difference.
But as a scare tactic, using that kind of analogies works great for politicos. It's a way for them to appeal to one of the biggest fears of people in general: financial ruin.
I'm sorry. You're wrong. hitting the fan means bankruptcy in both cases. It just takes different forms and a lot longer.
State your case.
But you're right that there is no Chapter 11 bankruptcy filing for nations.
It has nothing to do with Chapter 11. It has to do with who controls issuing of the currency.
Most countries accrue debt in different denominations (ie: the US dollar, Euros, etc), and thus, when they can't pay back, they effectively go bankrupt (and normally go through debt restructuring, which can be onerous).
You could make the argument that hyperinflation is coming if we keep spending at these levels, but inflation in general has been fairly under control.
BTW, I'm not opposed to curbing spending and have the debt/GDP rate under control. You don't want to get to the point where inflation starts to creep up.
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