Wot's in store for U$A?

[Leftwinger]

The US - like Australia - is a fully sovereign nation in every sense of the word. The US runs a pure fiat currency, which is to say the the $USD only comes into existence when the US government spends it, literally out of thin air.

"Fiat" is a Latin word meaning "let it be done". That is literally what the thing we choose to call money is. It is an abstract concept, an idea. It is real, but not in the normal physical sense. Just as points in a game of ten pin bowls are real, they do exist, but not physically and there are no physical constraints on the number of them in existence as such. The bowling alley does not worry that there are enough points "saved up" in the safe when a busload of crackerjack bowlers turns up, nor does it need to collect points at the door from every bowler leaving the alley so that there are enough points left for the next nights games. Such concepts are completely meaningless unless points in a game of bowls can only be counted in real, physical tokens of which there exists a limited supply.

http://en.wikipedia.org/wiki/Fiat_money

In most real terms, the US national debt is fairly irrelivent. Obama should simply spend whatever it takes to get the US economy moving again. Note that while there are no real operational constraints here, ideological and political ones will most likely rule the day. Unfortunately.

[IQSRLOW]

In most real terms, the US national debt is fairly irrelivent.

This shows how dumb you really are

[Outlaw Yogi]

Debt doesn't exist? .. How/why so? or did I miss the sarcasm?

The doomseekers cum gold (& precious metals) peddlers are all blowing their "I told you so horns" 'coz gold's toped $1400 p/oz and silver $30 p/oz ... and keep banging on about fiat money's imminent collapse ... and pumping out stuff like ...

U.S. Military Prepares for Economic Collapse
http://www.thenewamerican.com/index.php ... c-collapse

and

Jim Rickards: At Least One Swiss Bank Has Started Refusing To Hand Over Physical Gold To Clients
http://www.businessinsider.com/jim-rick ... z17cIgT2fd

[IQSRLOW]

Frankly, if the US took leftards advice I wouldn't mind one bit.

My gold and mining stocks would go through the roof. I just feel for the poor working class- the ones that have to rake leaves and clean toilets. They would be fucked, yet here we have one of their own calling out for a good solid fucking because he has no idea what he is rambling about

[Leftwinger]

I didn't say that debt doesn't exist Heretic. Only that if the the US government owes a debt denominated in US dollars, it can always pay if it chooses since it's deficit spending is the source of net creation of the medium we call the US dollar.

When anyone can point out that this is in fact not where they come from and show where the actual source of their creation is, then we can have an intersting discussion.

[IQSRLOW]

In most real terms, the US national debt is fairly irrelivent.

When you make statements like this, then the only interesting discussion should involve how to stop you drooling from the corner of your mouth

[Leftwinger]

IQ, if you haven't anything substantial to add, you might as well just fuck up. Did you know that you're probably consuming enough oxygen to support around 1 000 000 wood lice? You should just quit breathing so that organisms higher than yourself can get ahead.

[IQSRLOW]

I would consider showing that you have no understanding of national debt pretty substantial

[boxy]

National debts do have real world consequences, though.

Heard of this thing called inflation, Lefty? The more currencey you create, the less it is worth, compared to everyone elses. Not a good thing in a global economy.

Do you not see the supreme irony in trying to borrow your way out of a financial crisis created by bad lending practices?

[IQSRLOW]

Lefty is busy reducing is debt by filling out his Visa, Mastercard and Citibank credit card forms so he can pay his mortgage off faster by paying 3 times his normal repayment