How will the ever growing U.S. National Debt problem ever be solved?

[Hardkill]

For over 2 decades politicians in Washington have done nothing to fix the serious U.S. National Debt problem. A few days ago, the U.S. National Debt just topped ops $33 Trillion for the first time ever in US history.

https://www.nytimes.com/2023/09/18/us/politics/us-national-debt.html

Will this issue ever get taken care of by the federal goverment?

[nhoktinvt]

print more money

[Hardkill]

1 minute ago, nhoktinvt said:

print more money

Are you serious?

[nhoktinvt]

i mean money pays and money is from the money printer or am i missing something like inflation which happened in Venezuela but hey they national debt is only around 890 billion usd 

[JosephKnecht]

7 hours ago, Hardkill said:

Will this issue ever get taken care of by the federal goverment?

In the current financial system, money = debt. 

The money in your pocket exists because someone, somewhere got a loan (debt). 

The only way to pay debt is to issue more debt. This becomes unsustainable in the long run.

The only way out is to inflate the debt and print more money or declare bankruptcy in which the whole system resets. 

[sholomar]

Quantitative easing is where the government suppresses interest rates by purchasing government bonds the free market can't absorb and hold on to them. It's a form of debt monetization. Here's the website that shows how much quantitative easing the Federal Reserve has done at any given time.

https://fred.stlouisfed.org/series/WALCL

There are some who believe this debt is not a problem. Debt is money and money is debt so all debt is basically just created money. All debt is technically already monetized since it exists as money in the system. The real problem comes with the interest money because the interest money doesn't exist and contributes to deflationary pressure. Raise interest rates to suck up extra money from the system over time to manage inflation. However because this interest money was never actually created the debt can only ever keep going up. You basically need to create new debt to replace the money lost from circulation from paying these interest payments.

The end result of the overprinting they did during covid is simply more inflation as more dollars Chase fewer goods. This is a totally separate issue where they mismanaged fiscal policy there for a year or two. When you print money and hand it out without a corresponding increase in economic output you're going to get inflation. There's no way around it. The disruptions to the supply chain caused by the pandemic policies added to this effect and exaggerated it. The best way to maintain yourself in a system like this is to stay invested in assets. Don't hold cash. Quit jobs that don't offer a wage that keeps up with the cost of rental increases or whatever other living costs you have. Inflation is sort of a necessary evil when you have an aging populace and all these entitlement programs with decreasing birth rates. It devalues the burden of past government spending though it does put pressure on the working class.

Maybe we shouldn't have a currency based on debt and compound interest at all. Maybe the government should simply print all the interest free money it needs directly from the treasury and bypass the central bank. Quantitative easing is a hack to get around the interest problem anyways. Regardless, there is no paying off the debt. It will never get paid off only monetized due to the interest money not existing problem I discussed earlier.

 

Edited September 26, 2023 by sholomar

[Reignforest]

The economic system will either descend into an immature form of socialism, or ascend into a more mature socialist system. However in order to mature we might need to collectively agree to dissolve our national identities and replace it with a global human identity. 

[Bobby_2021]

The government is moving to a partial shut down now.

The debt in the last few days itself has grown over 100B dollars. I don't know what is happening.

 

https://www.brookings.edu/articles/what-is-a-government-shutdown-and-why-are-we-likely-to-have-another-one/

 

 

[Reignforest]

Studying anthropology will reveal that humans are capable of complex civilizations without the need for an economy or centralized government. If things ever shut down completely people will be forced to pursue intentional communities in order to meet their needs. Those survivors will recreate the orange economy until they figure out how to ascend into a green economy.