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J

jwnz

Junior Member
Registered Member
BoraTas said:
Debt can infinitely increase as long as it comes with increased productivity. The US debt is serviced through new debt since the gov is in a budget deficit. So far it came with increased productivity so there were no problems. What happens when productivity doesn't increase though? You get Japan, Italy, and increasingly the UK, at major economies.

This debt ceiling thing is an issue because it is a legal limit only the congress can increase. It becoming material for petty politics shows how dysfunctional and self-harming US domestic politics are. The US govt can't borrow without the congress increasing that limit so it can't service existing bonds. If the US defaults on even a tiny percentage of its debt, it would be really harmful to the USA. US bond interest rates would increase permanently to account for the increased risks with the US bonds, which would in long term cost trillions of USDs to the USA. In short term its effects would be more drastic. The US economy would contract this year.

All of this would happen because of Republicans vetoing the lifting of debt ceiling, effectively banning the US Govt from servicing its debts.
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The debt ceiling is silly IMO, as you said it's been turned into a petty political tool / ploy by both parties.

As for the sustainability of the ever increasing debts, that's made possible by the USD being the reserve currency, which is due to the size of the US economy, the petrol dollar status, and the military might of the US, not much to do with productivity at all IMHO.

I still assert that the chickens will soon come home to roost for the US.
 
O

Overbom

Brigadier
Registered Member
Ok this is huge. Can they actually do it? Poor Brazilians though, Argentine had 100% inflation in 2022, their economy is a shambles lol
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Brazil and Argentina to start preparations for a common currency​

Other Latin American nations will be invited to join plan which could create world’s second-largest currency union
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Brazil and Argentina will this week announce that they are starting preparatory work on a common currency, in a move which could eventually create the world’s second-largest currency bloc.

South America’s two biggest economies will discuss the plan at a summit in Buenos Aires this week and will invite other Latin American nations to join.
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The initial focus will be on how a new currency, which Brazil suggests calling the “sur” (south), could boost regional trade and reduce reliance on the US dollar, officials told the Financial Times. It would at first run in parallel with the Brazilian real and Argentine peso.
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“There will be . . . a decision to start studying the parameters needed for a common currency, which includes everything from fiscal issues to the size of the economy and the role of central banks,” Argentina’s economy minister Sergio Massa told the Financial Times.

“It would be a study of mechanisms for trade integration,” he added. “I don’t want to create any false expectations . . . it’s the first step on a long road which Latin America must travel.”
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An official announcement is expected during Brazilian president Luiz Inácio Lula da Silva’s visit to Argentina that starts on Sunday night, the veteran leftist’s first foreign trip since taking power on January 1.
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coolgod

coolgod

Major
Registered Member
bajingan said:
Sorry correction, hopefully the victims aren't Chinese
However reading coolgod twitter reply, my worst fear confirmed looks like many Chinese/asian victims
I wonder who is responsible, white supremacists or black street gangs?
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I thought it was a racial hate crime for sure, but then there is a chinese wechat floating around saying the shooter was Chinese.
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