Quote:
Originally Posted by TommyBoy9
I think GDP is a largely irrelevant metric. Really its our government's tax revenue that matters. That amount that we the people have agreed upon to pay them annually, under the assumption that they will spend wisely. I know many economists and politicians use GDP often, but I think they do so to downplay the seriousness of our financial situation. Its sort of like if a family member going to the bank for a loan has tons of debt, but tells the bank not to worry because their siblings and cousins and aunts and uncles, etc. have lots of money. The bank cares only about the borrowers (governments) assets, and cares not for the rest of his family's financial situation (the taxpayers). Unless of course the other family members agree to co-sign the loan (all of the US citizens agree to pay WAY more in taxes).
...I am open to another train of thought though regarding 'GDP's value' in US debt discussions, if you care to discuss.
Yes, I agree. The gov wants, ...needs, inflation. But our debt is now so big, and still growing due to the unending handouts from this administration, that I don't see how even mass inflation makes the numbers work out.
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Some time ago did just a little reading on the issue of sovereign debt, all the "money" that was borrowed by governments, that the governed owed , depressing, the numbers high and getting higher with no practical solution, and certainly not just this country. Doom and gloom prediction are easy to find, practical solution not so. Faced with a worst case scenario of a international financial systemic failure you can be sure that governments would exert their sovereign powers for "easy" short term solutions that would create long term problems, oh well.