Currency
The US gets away with its current spending levels, and the “quantitative easing” (faking money) combined with borrowing money, because we remain the world’s reserve currency. Generally, this means that everyone else’s currency and trade is measured in US dollars.
As a random aside, the word “dollar” and “neanderthal” share a common root - the “thal ( Read more... )
The only credible solution I have heard of is Trump's proposal to sell off US government assets to clear the National Debt. I do not believe that there is any economic policy based on adjusting income and expenditure which can accomplish the necessary changes. The USA is Solvent In Name Only as soon as its currency gets treated the same way as everyone else's. The trick is to announce the sale before you get foreclosed on, as otherwise the perceived value of the assets drops like a stone.
Also, the level of debt is such that there is no option to increase interest rates at any time; the government could not meet the interest payments itself and would have to print more money just to pay the debt. So the US government is, until the debt is cleared, unable to put into effect an economic policy to handle a real recovery instead of the current fake one.
The only other defense the USA has is the desire of its major customers not to bankrupt it.
Interestingly, the Greek Orthodox Church is holding enough assets to bail out the Greek economy should they wish to do so. Evidently they don't.
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He also has no clue what US's national assets are worth. He doesn't really do real estate deals all that much, he does name licensing deals where others take the risk. And the US is more than the sum of its real estate.
Restoring a Constitutional limited government will solve the debt crisis, but we have to get this to happen soon. It is a mindset change as much as a legal one.
As for the Greeks ... why would they come bearing gifts to the bureaucrats, and thus enable them to continue to spend with wild abandon? This replays another round, this time fatal, of the "too big to fail" phenomenon. Fix the spending, the other issues will resolve themselves.
You are right about the USA's debt being something of an insulator. But this is actively being worked around by our major enemy. In time, the internal issue for the Chinese will be solved - and then they pull the trigger, and we will be dissolved.
===|==============/ Keith DeHavelle
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