Okay America humiliated Iran big time, but how will they survive their gigantic debt in the long run? It seems like neither the Republicans or Democrats are trying to do anything against it. It's what fucked up Germany before Hitler's rise to power, and from my understanding there is no pain free way out. It's either the printing press that would make the dollar lose much of it's value, or defaulting, which would also hurt the dollar and american economy big time. What do you think /pol/, can America get out of this hole?
Germany decided it couldn't pay its war debts so stopped paying. France and Belgium then sent troops to occupy the Ruhr Valley and ran the factories there for their benefit. Who's going to come occupy California or Alaska and physically collect on our debts?
>>529503579No one, but it will still hurt investments from other countries and the dollar will plummet in value because it can no longer be trusted as a safe holder of value.
Anyway, the Keynesian answer to your question to why debt might not matter: you expand your economy and create enough broad growth, including wage growth, that inflation is a positive. So debts from 15-30 years prior you're still paying on become 'cheaper'.
>>529503311Usa can never default on the debt. That would destroy the entire world financial system. All the banks would collapse overnight.The solution is the same, keep printing, make the debt cheaper in real terms.
If you're curious about the health of the dollar follow the US Dollar index. It's actually fairly strong now. Historically we worry when it dips below 80. It's at 97 now. The thing about the dollar is we get more foreigners wanting to buy our stuff when the dollar dips below 90, and they want to buy our debt when it's over 100. So there are benefits each way. Right now the inflationary pressure is making working class people uncomfortable. So austerity isn't ever the answer for a politician who wants reelection. Typically we will get some small amount of wealth redistribution to actually cool inflation long enough so we get used to the new normal.
>>529503311>Okay Israel humiliated Iran big timeFixed that for you OP
>>529503311Here is last week's thread topichttps://archive.4plebs.org/pol/thread/528962804Main problem globally rn is, nobody wants to buy the debt.Why is that a problem? Because the global default reserve debt note fiat currency denomination is USDCurrent topic thread: >>529433467>>529433467>>529433467>>529433467(the "hole" is never intended to be 'gotten out of', Central banks run this show Iran was invaded/bombed because its central bank wasn't Rothschild)
