Re:Businesses are in for a mighty debt hangover
by tehjoker on Tuesday May 16, 2023 @07:39PM
(#35969289)
No, the economy must decide between guns and butter. Military expenditures are destructive and wasteful. The US can afford its disproportionate and non-productive military expenses because it is subsidized by the rest of the world buying US treasuries and the dollar as the world reserve currency since the end of Bretton-Woods combined with sovereign fiat.
This is a world historical anomaly that is underappreciated. When the world dollar regime goes, so too will our unbounded budget and ability to impose global sanctions unilaterally.
Re:Businesses are in for a mighty debt hangover
by SoftTalker on Tuesday May 16, 2023 @07:47PM
(#35969371)
Defense spending is not the biggest part of government expenses. It's about 12%.
https://fiscaldata.treasury.gov/americas-finance-guide/feder...
And that doesn't even include state and local government spending.
Re:Businesses are in for a mighty debt hangover
by fatneckbeard on Tuesday May 16, 2023 @08:29PM
(#35969735)
yes thats basically, going along the lines of the Chartalist / Modern Monetary Theory view of money, and combining it with the Petrodollar theory of money.
sorry - edit - tried to keep this short, keep messing up. Theres a lot of deep rabbit holes if you want to dig into those theories online.
just keep in mind a lot of economists disagree with MMT / Chartalism and some even disagree with what a Petrodollar is.
I have often heard that household/consumer debt cannot and should not be treated the same way as the debt a government holds. But it is still something to be concerned about because Argentina printed a lot of money to pay off debts I believe and that devalued their currency a lot.