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Debt limit

Why is it a good/responsible idea for America (or your country) to go deeper into debt?
Wouldn't it be better/responsible if the debt limit was at $0?

It must be a good idea. It's been the only plan for a long long time.
I'd say the reason for it is to camouflage the US Government control of the money flow. They can use debt to devalue the dollar, or print lots of new money that has little value.

Just think of the 20 dollars you put in the bank and how little it can buy in 10 years from now. Yet there isn't anything like inflation any longer. Guess inflation got nicely written out of the equation among all of those debt scenarios.

Something needs to be done about the big banking corporations, who are being run by a small group of mega rich individuals who have the Governments in their pay. Ever since the banking regulations were removed so that banks could comingle their banking business with investments and all kinds of money products, we've been in trouble. The Government and banking corporations have been stealing our money. Billions of dollars have been moved from the poor and middle classes to the rich during that period.
deanhills wrote:
The Government and banking corporations have been stealing our money.

I'm so sorry that the government and the banking corporations stole your money. I don't know why but they haven't gone after my money yet. They're bad boys, bad boys, what are you going to do when they come for you, bad boys, bad boys.

So why do they want to devalue the dollar so it has very little value?

Is it so the banks can have billions of dollars that isn't enough to buy a loaf of bread?
None of it (money) is real though is it.
The relationship between world resources and 'money' is so far gone down the road of imaginary balance sheets that I don't really have much regard for the ridiculous figures nations 'borrow' each year to pay the bills - UK perspective for me £100+ billion this year borrowed/created to keep the lights on.

OK, currencies are the units we use to trade and of course I am forced to use it like everyone else.
We could argue the rights and wrongs of imaginary money being borrowed/created by governments, but the real tragedy is that our world does not have the resources for everyone to live a Western/1st world lifestyle and it is therefore essential for a certain percentage of people to live in poverty in support of the lucky minority.

Sovereign debt is a meaningless construct required by a banking/monetary system which can not support equal access to world resources.
I was 'lucky' enough to be born in the UK and the debt of my country (to me) is meaningless when the allocation of resources requires impoverished workers in poor countries to provide my luxuries.
We cry about imaginary national debt but care little about the exploited workers who provide the goods for the west - the current system requires a percentage of people to have next to nothing and that is what needs changing, not bleating about perceived debt which has little relation to the real world.

...too big for me to change though, fingers crossed for the next generation.
watersoul wrote:
Sovereign debt is a meaningless construct

If sovereign debt is meaningless then why does america (The UK could be different) have to spend so much on interest on the debt?
jmraker wrote:
watersoul wrote:
Sovereign debt is a meaningless construct

If sovereign debt is meaningless then why does america (The UK could be different) have to spend so much on interest on the debt?

I'm with you there, honestly.
The 'interest' is fabricated though, just like the 'Quantitative Easing' which both our countries have been creating to settle the imaginary balance sheets.
Our money does not represent actual sacks of gold anywhere now, it is created by government bonds traded between central and commercial banks.

Sovereign debt is meaningless to me because it is an artificial construct which controls allocation of tangiable world resources - there is not enough for everyone, so this process keeps a percentage of the planet in absolute poverty while allowing us access to the biggest slice of whatever is available, be it oil, gas, rare earth minerals or food.

Please accept my apologies if I'm derailing your thread a little but my perspective on the entire economic system goes far deeper than this illusion of national debt which does not truly reflect the resources we all have available.
I do not have the answers, but I know that any changes which benefit us economically are always on the backs of other poor countries, and the only people who ever really win are the corporate banking interests which have more power than governments these days Sad
jmraker wrote:
Why is it a good/responsible idea for America (or your country) to go deeper into debt?
Wouldn't it be better/responsible if the debt limit was at $0?

Unfortunately, I wish that were the case. $0 debt would be nice. However, it's not the way it works. It's the process itself. It's beneficial when used properly. But, in our current state, it has been abused.

I think many people don't understand what exactly the national debt is. It's mostly treasury bonds and securities that people, businesses, or governments including American citizens buy. It's basically a loan to the U.S. government on the condition that they get their money back with interest. That money is used to fund federal programs and run the nation on top of the taxes it collects.

What's funny is that almost a fourth of the total national debt is actually owed to American citizens American businesses, and local/state governments. That is the largest creditor the U.S. government owes money to. We're indebted to ourselves. That's only up around 4 trillion dollars though.

The rest is mostly owed to countries like Japan, China, Russia, Brazil, and any one of those countries with either high economic status or resources. The whole idea is that they invest in the U.S. government because they have faith that they will be paid back with interest. They trust the stability of the U.S. government (or at least used to).

If the U.S. defaults on those, it will make countries lose confidence in the American government and they may pull their money out and invest into other places. That would send the global economy into a messy situation, particularly to the U.S. It's a dangerous place to be and a reason to be concerned when things aren't being fixed.
In Philippines we have bigger dept due to Politicians are corrupt.

Imagine, i work hard but the tax deducted is 32% . this is really crazy and my tax are spend on there own interest.

There is hot issue here in Philippines called Pork Barrel. Below are the detail on how it works. MANILA, Philippines—The Bureau of Internal Revenue (BIR) will continue with its investigation on more possible tax violations committed not only by Janet Lim-Napoles but her children as well.
At a press conference Thursday, BIR Chief Kim Henares said their investigation is continuous.
“We want to know how much is their total tax liability,” Henares said.
The BIR already filed tax evasion complaint before the Department of Justice against Napoles, her husband Jaime. Napoles’ total tax liability is P44.68 million while her husband’s liability is P16.43 million.

The BIR also, in a separate complaint, filed a tax evasion case against Napoles’ youngest daughter Jeane Catherine for failure to file income tax return for 2011 and 2012.
Henares said the young Napoles was able to acquire a condominium unit at the Ritz Carlton in Los Angeles, California worth P54.73 million; and has a share, equivalent to P1.49 million, in a Bayambang, Pangasinan property purchased in 2012 without declaring any income.
She was heavily criticized by the media for flaunting her lavish lifestyle.
Aside from Jeane, Napoles’ other children include Jo Christine, James Christopher and Christian.
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