War in Ukraine

#38,476
#38,476
MontyPython said:
Yet here we are... the sole superpower standing.

Again, economists largely disagree with you, so I trust them over you when it comes to a nation's fiscal policy.
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Actually many don't disagree and we aren't the sole. This inflation and incoming recession are proof that our policies are leading us down a dark path. The only reason we're still standing is the fact we're willing to buy off, invade, fight and/or kill anyone over the petrodollar. If you don't agree with the good guys you will die
 
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#38,478
#38,478
LouderVol said:
Uh. Except the mortgage holder typically isnt going to let you keep adding to your debt. They want it paid off. We are doubling our mortgage every ten years without ever touching the principal of the loan.

And I would argue a crap ton of our national mortgage is not being spent on tangible assets that increase in value or things that add to the QOL or our ability to pay off the debt in the future. Pretty every single bit of our spending has zero or negative ROI.
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Not true. Lenders absolutely want to lend you more... as much as you can afford. They *lose* business when you pay off a debt.
 
#38,479
#38,479
utvolpj said:
Actually many don't disagree and we aren't the sole. This inflation and incoming recession are proof that our policies are leading us down a dark path. The only reason we're still standing is the fact we're willing to buy off, invade, fight and/or kill anyone over the petrodollar. If you don't agree with the good guys you will die
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Respectfully disagree with most you say.

Here's a good article on the subject IMO.
 
#38,481
#38,481
Of course, all this might be avoided if the pace of debt-issuance is slowed beforehand. But, as mentioned above, there is no way of knowing beforehand just how large the national debt can get before inflation becomes a concern.
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Except for all those people saying it was going to be bad. But Monty trusts them so it's all good
 
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#38,482
#38,482
MontyPython said:
Not true. Lenders absolutely want to lend you more... as much as you can afford. They *lose* business when you pay off a debt.
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Only in an economic system with infinite cash floating around. Once their bills come due, they will absolutely want you to pay it off.
 
#38,484
#38,484
EasternVol said:
For the Russians maybe. Not for us.
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No genius. The US fed arms and advisors into South Vietnam for close to a decade before we eventually moved in with boots on the ground in 1965. Nearly a decade later, we pulled out. The Ukrainians are no different than the South Vietnamese in this situation.
 
#38,488
#38,488
Rasputin_Vol said:
No genius. The US fed arms and advisors into South Vietnam for close to a decade before we eventually moved in with boots on the ground in 1965. Nearly a decade later, we pulled out. The Ukrainians are no different than the South Vietnamese in this situation.
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Why not the South Koreans?

There we actually fought China, who would be Russia in this case.
 
#38,491
#38,491
Uh oh.

Blow for Putin as China abandons investment in Russia

China has not funded any new infrastructure projects in Russia for months as Beijing focuses its attention on preventing a financial crisis at home.

Financing and investment through the Chinese Belt and Road Initiative (BRI) fell to $28.4bn (£23.6bn) over the first half of 2022, down from $29.4bn during the same period last year, according to a study by the Green Finance & Development Center at Shanghai’s Fudan University.

No money went to new projects in Russia, Sri Lanka or Egypt, all of which had previously been key beneficiaries of Chinese spending. The lack of engagement with Russia suggests Chinese businesses may be afraid of falling victim to secondary sanctions introduced against Moscow over the invasion of Ukraine, and comes despite the pair insisting that their friendship had "no limits" shortly before the war began.
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#38,494
#38,494
MontyPython said:
So if you view debt solely through the prism of its nominal value ($20+ trillion), yeah it's scary and seems excessive. But when viewed in relation to how you - as an individual consumer - manage your own debt, it's not scary at all.

Case in point: home mortgages. By allowing you to have significant debt, mortgages enable you to afford a far better home (and effectively a higher standard of living) than the home you could afford if you had to pay for a home in cash.

How does your personal debt compare to the fed government? A good rule of thumb is that the maximum cost of your house should be no more than 2.5 to 3 times your total annual income.

This means your personal debt ratio (debt/income) would be 250-300%. And this excludes debt like your car loan and whatever other stuff you might have on credit. So a 300% debt ratio is common for many individuals. How can we be critical of our government about its debt, when we maintain over 2x as much debt as individuals? Hypocrisy incarnate.

Thus, compared to our Fed's debt at 134%, our personal financial decisions (and resultant debt) are actually far more risky. But with this debt, we all get a higher standard of living.

So, yeah, our current fed debt is not excessive.
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Your comparison doesn’t make a lot of sense. We are currently borrowing money to pay the interest on the debt. IOW…we are using credit cards to pay for other credit cards. Taking out enormous amounts of debt or the bank allowing you to have a jumbo mortgage does not automatically equal a higher standard of living. The financial crisis bore that out. Since you asked, been in my home 21 years, own it outright and my monthly mortgage was never more than 20% of my monthly income. Been debt free for a long time and pay the credit card off every month. So, living within your means is clearly not hypocrisy for many of us who expect the govt to do the same. And by any measure and many economic analysts, yes, the debt has reached a dangerous debt/gdp ratio.
 
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#38,495
#38,495
FLVOL_79 said:
Desperate times call for desperate grade school measures I suppose.

What next? Gay Nazi Homing Pigeons trained to sh!t on Russians and give them the High 5 all conconcted in secret US funded biolabs where Russian prisoners are used to fight monsters from the upside down and th..oh wait, sorry, Stranger Things. Gay Nazi birds or some sh!t amirite?
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Well we have dolphins that tag anyone near the ammunition and heavy armament supply in Washington. We have also in the past trained pigeons to shat on optical targets to remove viewing capacity sooo….
 
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