Re:Bitcoin: A flawed currency with a useful application for ...
by chimeracoder on Friday July 03, 2015 @11:50AM
(#9826216)
> Debt is only a problem if you can't service it. This is doubly true with sovereign debt, where servicing debt provides people a safe place to invest their money.
> None of what I said is controversial among people who understand economies.
I have a degree in economics, so yes, I understand how sovereign debt works. The point is that even if the market never loses faith in the US's ability to pay back its existing debt, if it stops being the most trustworthy source of newly-issued debt, the US loses a great deal of power.
Re:Bitcoin: A flawed currency with a useful application for ...
by calibraxis on Friday July 03, 2015 @01:11PM
(#9826733)
Interesting notion, the global bully with the big weapons owing you (a nation) a "debt". Which is made by you giving them your money in exchange for IOUs. And you keep rolling it over. Sounds more like tribute.
There's a difference between a temporary setback and problems with the fundamentals. This is the case in the private sector and it is the case with sovereign entities, and the people who keep buying US Bonds obviously understand this.
> and the state of the US national debt.
Debt is only a problem if you can't service it. This is doubly true with sovereign debt, where servicing debt provides people a safe place to invest their money.
None of what I said is controversial among people who understand economies. The fact people whine and moan about the USA's debt is a function of how easy it is to score cheap political points by taking advantage of the ignorant.