It’s all a credit based illusion
Can’t beat sound money!
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A debt based economy is a house of cards – depending on the collateral. How much is the full faith and credit of America worth?
The Captain
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Why limit the discussion to “debt based.”
Everything is worth what someone is willing to pay for it. When demand slows, prices trend downward.
The economy is a house of cards.
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And like the original ‘Gilded Age’, those at the very top are making out very well and will do even better in the coming years.
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At this particular moment, not much.
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Seems I have been saying that for years: the “supply side economic miracle” was built entirely on the drawdown of savings and the accumulation of debt.
Steve
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The US does have tremendous wealth in natural resources and land suitable for agriculture. We rely on Congress to deliver. Potential to fund deficit if required seems excellent.
Hyperinflation in Germany during the 20s was resolved with a new currency supported by land values. We have lots of assets and many options.
Time to remind: Clinton had the USA headed to paying down the deficit, and that was reversed as horrible and dangerous by Greenspan and W, and so the GOP reversed the hard work of the previous 20 years by groups such as
of which I was a charter member.
The unsustainable debt talk has and does come mostly from those keeping it going worse…. tax cuts for the rich anybody?
d fb
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Energy is the master resource. IIRC, the US leads the world in oil production, oil exports and LNG exports.
A business proposition from Europe…
DB2
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I have been of the opinion that Greenspan was a political hack. “W” wanted to pass multiple “JC” tax cuts, so Greenspan created a narrative that paying down the Federal debt was bad.
The Concord Coalition
Many years ago, I caught a conference by the Concord Coalition on C-SPAN. The transcript is no longer on the net, but it had an interesting comment. One of the panelists said that he had had a conversation with an ardent “starve the beast” advocate. He summarized the STB’s position as (words to the effect) “so your plan is to do nothing, until there is some sort of crisis, then tell the elderly, many of whom have no other financial assets, “sorry, we can’t do it anymore”, and you don’t think there will be serious social and moral consequences?” Of course, with AI driven TIA, anyone who objects could be quickly found, and disposed of.
Steve
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