US National Debt

[mmr]

They are counted, in the exact way I just said. Why should they not be?



Why? debt is leveraged on wealth, not production.



That is a very simplistic take...not to mention that every country has bought into it and buying into it heavily.

So canada should allow to take trillions dollar debt cause of oil sand? That dont make any sense. What if those oil sand always remain under ground.

When you printing money it creates inflation. also Fed is buying trillions of Junk corporate bond. Those bonds has zero value.

 

[Nilgiri]

So canada should allow to take trillions dollar debt cause of oil sand? That dont make any sense. What if those oil sand always remain under ground.

Where did I say that?

There is qualitative leveraging, a total is just a total...a frontier estimate....just like GDP (Esp PPP) is also a frontier estimate of production/output in some standardised measure.

But even in such macro-aggregate there is obviously a quality aspect to its various layers (sectors)....or if you prefer Friedman, M0, M1, M2 etc from macro supply end of the instruments to measure it.

So what you take a loan out on has to match the quality of what you are leveraging it on. You get that by having as much and as open an information flow as possible in the system you set up.

The quality of oil sands is for example baked into the market cap of companies involved with it. Stuff like how they shut down production (or take a loss on it) when oil price dips below certain level for example, all is factored into their market cap....market cap that is ultimately traded and owned by thousands and even millions of hands. This percolates in various ways to whole population but not in 1:1 way....but thats a different subject of analysis.

 

[Nilgiri]

When you printing money it creates inflation. also Fed is buying trillions of Junk corporate bond. Those bonds has zero value.

This is simply again very simplistic take on the matter. There is underlying credibility and trust that means a whole lot.

 

[mmr]

This is simply again very simplistic take on the matter. There is underlying credibility and trust that means a whole lot.

So it wont create asset bubble?

 

[mmr]

Where did I say that?

There is qualitative leveraging, a total is just a total...a frontier estimate....just like GDP (Esp PPP) is also a frontier estimate of production/output in some standardised measure.

But even in such macro-aggregate there is obviously a quality aspect to its various layers (sectors)....or if you prefer Friedman, M0, M1, M2 etc from macro supply end of the instruments to measure it.

So what you take a loan out on has to match the quality of what you are leveraging it on. You get that by having as much and as open an information flow as possible in the system you set up.

The quality of oil sands is for example baked into the market cap of companies involved with it. Stuff like how they shut down production (or take a loss on it) when oil price dips below certain level for example, all is factored into their market cap....market cap that is ultimately traded and owned by thousands and even millions of hands. This percolates in various ways to whole population but not in 1:1 way....but thats a different subject of analysis.

Thanks some thing new to learn.

 

[Nilgiri]

So it wont create asset bubble?

Yes of course it can, its very likely one growing right now because of projected liabilities of US govt spending....the ramp that is there because I do not see economy growing at pace to support that stuff...(basically totally new economy sectors continually being found, innovated and grown fast etc given US and west is basically very close to the long run potential always)

There will need to be taking stock of that and doing a major bipartisan reform this decade for it. Let us see.

It is not necessarily drastically pessimistic stuff, but that does not mean its automatically optimistic.

People are very inelastic beings you see....in many ways. They get promised things, get used to a certain expectation and aren't very flexible overall (say in US if you look at the unfilled blue collar jobs just sitting there compared to college students who piled up loans for useless crap)

....whereas everything else regarding GDP, wealth etc assumes near perfect flexibilty of resources. This is the main mismatch between theory and application....and it gets wrapped 100 different ways to provide employment to all kind of economists and talking heads.

 

[Broccoli]

Americans are already eating grass sleeping on the streets. Currently USA has the biggest number homeless people with no hope in the future.

UN reports about Human Rights in USA are mostly biased. There is a report that says homelessness in USA is not only issue of poverty but also the fact that American economy is designed to protect interests of oligarcgs at expense of poor people.

Truth is that 2 million will die of hunger without charity, almost 1.5 million of them are sleeping on the streets. At least 2 million American students have experienced homeleness.

Honestly i can't understand the functionality of those statistics which defy the Ground reality. After eating grass they are eating Asphalt of the streets apparently.

Nowadays it' not uncommon for woking people to live in their cars because ever increasing rents, poor city planning, lack of proper public transport whats forcing poor people to drive their own cars and that is spreading from US to all over the world.