GDP, National Debt, and &.4 Trillion Dollars

[Crying Hyena]

So after a heated discussion with my brothers, one who's an economist and the other an MBA, I came to realize that the 7.4 trillion dollars that is being spent is to maintain the economy as the markets are separate from the economy in some way. I still haven't quite figured out the relation between the two. The question I have is, if the money is being used to maintain the GDP but creating more debt, what happens when the interest on the debt becomes higher then the U.S.'s ability to pay on it and the principal?

[stalwart]

So after a heated discussion with my brothers, one who's an economist and the other an MBA, I came to realize that the 7.4 trillion dollars that is being spent is to maintain the economy as the markets are separate from the economy in some way. I still haven't quite figured out the relation between the two. The question I have is, if the money is being used to maintain the GDP but creating more debt, what happens when the interest on the debt becomes higher then the U.S.'s ability to pay on it and the principal?

that'll happen within 10 years. i have no idea....

[Xtra-Medium]

when that happens the US collapses maybe?

[Foxodi]

Everyone realizes the US has been living off the world.
Shitstorm happens.

[Vanno]

Everyone realizes the US has been living off the world.
Shitstorm happens.

Pretty much. Dollar hegemony is a dying paradigm

[tsalin]

So after a heated discussion with my brothers, one who's an economist and the other an MBA, I came to realize that the 7.4 trillion dollars that is being spent is to maintain the economy as the markets are separate from the economy in some way. I still haven't quite figured out the relation between the two. The question I have is, if the money is being used to maintain the GDP but creating more debt, what happens when the interest on the debt becomes higher then the U.S.'s ability to pay on it and the principal?more wars :cool:

[minijag]

yay! shitstorm.

But after the shitstorm things will get better. Its how the economy is self regulated. Thats why we have periods of recession and prosperity.

It would be better for us all if the US didn't bail out these companies. The way they are playing it, is going to put us into a global depression. Nations will lose faith in the dollar, and as a result our money wont be able to buy things from them.

[losinglife]

shit will hit the fan.

With any luck we will have someone in charge who will just give the middle finger to the fed at that point.

[heroshade]

Sad how this was posted yesterday and the love letter thread was posted twenty minutes ago and already has seven times as many replies.

[Sho'nuff]

So after a heated discussion with my brothers, one who's an economist and the other an MBA, I came to realize that the 7.4 trillion dollars that is being spent is to maintain the economy as the markets are separate from the economy in some way. I still haven't quite figured out the relation between the two. The question I have is, if the money is being used to maintain the GDP but creating more debt, what happens when the interest on the debt becomes higher then the U.S.'s ability to pay on it and the principal?

The U.S calls itself California and goes bankrupt.

[Aragoni]

My care-meter for the US is at the bottom. I love the Bill Of Rights and everything but the States are more fucked then Carmen Electra at an orgy.

[Lethn]

Everyone here is right, we're pretty much looking at Anarchy once America's economy goes down the pits.

The biggest problem I've found is that they've been injecting the cash into the wrong places, all this stuff has been going into the banks and the big corporations who have absolutely no intention of paying anything back.

[Ziegler]

I read somewhere about the amount of money in the bailouts could pay off like 70% of the mortages in the US...I mean I aint for a bailout but if they are just going to throw money out there...that would be the place to do it.

The reason is that land owners often take more interest in the government than those who dont, simply on the basis they have more to lose.

[Killuminati]

We can buy our own debt.

[Parabola]

So after a heated discussion with my brothers, one who's an economist and the other an MBA, I came to realize that the 7.4 trillion dollars that is being spent is to maintain the economy as the markets are separate from the economy in some way. I still haven't quite figured out the relation between the two. The question I have is, if the money is being used to maintain the GDP but creating more debt, what happens when the interest on the debt becomes higher then the U.S.'s ability to pay on it and the principal?

Hyperinflation.

[losinglife]

I read somewhere about the amount of money in the bailouts could pay off like 70% of the mortages in the US...I mean I aint for a bailout but if they are just going to throw money out there...that would be the place to do it.

The reason is that land owners often take more interest in the government than those who dont, simply on the basis they have more to lose.

And what happens when the day after that you want a mortgage... and the govt to pay for it? Think they will and it will be fair?

[TubeSock]

Let's talk about something important D: