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The US government’s balance sheet has been improving for decades

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Jul 1, 2023
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4,814
The government’s interest bill has fallen in recent decades as a share of the economy, thanks to lower borrowing costs over the period. Net interest as a percentage of GDP, without adjusting for inflation, has averaged about 1.5%, though it climbed to 1.9% in 2022 after the pandemic borrowing surge.

Factor in inflation, and interest-to-GDP has frequently been negative, even before the burst of post-COVID price increases. Looking ahead, the White House Office of Management and Budget expects Yellen’s measure to rise back above zero in 2024, as inflation ebbs, and then to top out at 1.1% in 2032-33. That’s a level the Treasury secretary says is “quite reasonable.”

‘Inflated Away’​

Jason Furman, a professor at Harvard University and former economic adviser to President Barack Obama, agrees. In a 2020 paper, he and former Treasury Secretary Lawrence Summers argued that policymakers should aim to keep real net interest from rising above 2% of GDP.

The metric favored by Yellen is the right one to use, Furman says, because it’s important to factor in the opposite effects that interest costs and inflation have on the debt burden.

When rates and prices are both going up, Furman says that “in one sense, next year’s debt is even bigger than this year’s debt, because it goes up with interest. But in another sense, next year’s debt is smaller, because part of it is inflated away and so you don’t need to pay back as much.”

 

MalO

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Nov 15, 2022
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707
AgEngDawg has it right. Everyone who is buying groceries knows that the real inflation level is higher than what's being reported by officials. You can't inflate the national debt away without absolutely destroying the economy, but when your government is run by retarded asshats, they love to do this because they control the purse strings of the government so they benefit from the increased government spending. Basically they don't care that the other 99% of the country is becoming impoverished. They get all the new money being printed and spent so they're fine.

That's what inflation is - it takes value from the money in your wallet and bank account, and gives it to the government apparatchiks who control the national spending. It's the same as robbery, except they never put a gun in your face and they don't need to ask you to hand anything over.

A sound economy would have 0 inflation. The 2% metric is carefully crafted to ensure that each generation of Americans is poorer than the generation before it, but they don't notice it year by year. Boil the frog slowly and it won't jump out of the pot.
 
Joined
Jul 1, 2023
Messages
4,814
AgEngDawg has it right. Everyone who is buying groceries knows that the real inflation level is higher than what's being reported by officials. You can't inflate the national debt away without absolutely destroying the economy, but when your government is run by retarded asshats, they love to do this because they control the purse strings of the government so they benefit from the increased government spending. Basically they don't care that the other 99% of the country is becoming impoverished. They get all the new money being printed and spent so they're fine.

That's what inflation is - it takes value from the money in your wallet and bank account, and gives it to the government apparatchiks who control the national spending. It's the same as robbery, except they never put a gun in your face and they don't need to ask you to hand anything over.

A sound economy would have 0 inflation. The 2% metric is carefully crafted to ensure that each generation of Americans is poorer than the generation before it, but they don't notice it year by year. Boil the frog slowly and it won't jump out of the pot.
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Joe Kings

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Being paid to make stupid nonsensical posts on a message board ranks around the same level as a street walking hooker. You should be proud.
 

MalO

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1 to 2 percent deflation/year would be better.
No that just impoverishes the people.

In the other thread you also opposed paying a living wage to all Americans.

I think it's clear you're sitting with the globalist camp when it comes to politics.

I pray someday soon we burn down their system and mount all the globalist's heads on pikes in front of our courthouses and government buildings.
 

Joe King

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Jan 2, 2023
Messages
666
No that just impoverishes the people.
You clearly haven't studied history.

In the other thread you also opposed paying a living wage to all Americans.
I'm all for paying people the wages they demonstrate that they deserve. Just because someone has any job, does not mean that job must pay enough for some random person's idea of what a living wage should be.

Everyone's wages should be based on merit.

I think it's clear you're sitting with the globalist camp when it comes to politics.
lol that's funny.


I pray someday soon we burn down their system and mount all the globalist's heads on pikes in front of our courthouses and government buildings.
I'd be ok with just locking them up. No need for animalistic bloodshed. We should be better than that.
 

CuriousFiend

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Jul 27, 2023
Messages
1,225
Thou shalt:

(a)

...pray someday soon we burn down their system and mount all the globalist's heads on pikes in front of our courthouses and government buildings.

(b)
...be ok with just locking them up. No need for animalistic bloodshed. We should be better than that.

... . . . . .🤔Tough choice!


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Mightn't we perhaps consider a bit of both... . . . . . (····(··?·)··)····)

😎Dare I say, there are no doubt many currently~alive individuals who may be very much so deserving of personally experiencing -first hand- that which they themselves have done/or are still doing to other individuals....

(¿?)...accountabilities = to the crimes.
(*or at least as nearest we may potentially replicate a means to enforce such.)~(¿?)


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