Government deficit?

[urbanbreez]

I've been doing some research on our national debt after hearing some serious concern about it from certain family members. i'm trying to understand what it actually means and these are my thoughts so far. Interested in hearing your thoughts on the subject.

The "country debt" is calculated stupidly - only the debt you owe without subtracting the debt owed to you.

See, if I owe you 10$ and you owe me 10$, a normal person would say that our total debt is 0$, but the "country debt" thing would say that we each are 10$ in debt!

the US owes 14 trillion to other countries (external debt).
But other countries owe the US 32 trillion EUROES!
So the US is actually way ahead. WAY ahead. Not only not in debt, but in a HUGE surplus.

No one counts that cuz, well, I guess they are trying to scare people?

If "they" start demanding a high interest for loaning "us" money, we simply recall back the money they owe us! So they'll have to give us the money anyway, but with no interest. So it isn't going to happen.

Did you never wonder how both the US and the EU are in debt? To whom? China too BTW, so the most powerful entities on the planet (financially) are in debt? How is that possible? I mean, how is it possible you never asked yourself that?

the US isn't in debt, not really, and remember that as the US dollar drops in value, so does our debt to others, but THEIR debt to us grows at the same time! That's why countries try to REDUCE their currency. Your entire arguments are based on a misunderstanding of the situation (encouraged by... everyone I guess?)

These debts are in place to stabilize the world monetarily. They are important, because they are mutual, since they mean that if any country starts to crash, ALL OTHER COUNTRIES pay the price, thus helping stabilize the world.

Don't let these things scare you though.

Sources:
http://en.wikipedia.org/wiki/List_of_co ... ernal_debt
http://en.wikipedia.org/wiki/List_of_so ... nal_assets

[AussieDodger]

[Tavish]

The "country debt" is calculated stupidly - only the debt you owe without subtracting the debt owed to you.

See, if I owe you 10$ and you owe me 10$, a normal person would say that our total debt is 0$, but the "country debt" thing would say that we each are 10$ in debt!

the US owes 14 trillion to other countries (external debt).
But other countries owe the US 32 trillion EUROES!
So the US is actually way ahead. WAY ahead. Not only not in debt, but in a HUGE surplus.

I don't think external assets means what you think it means.

[AussieDodger]

Yeah I don't think if you owe $200 on your credit card, you can ring the bank and say "BUT BIG PHIL AND JIMBO AT THE PUB OWE ME $150 EACH!!!!!ONE!!!"

Your "money" is no good here, America



Now a serious (non-snarky) question......... I wonder if the "universal" currency will change from US to pounds?

[Tavish]

Now a serious (non-snarky) question......... I wonder if the "universal" currency will change from US to pounds?

You mean change to yuan?

[RedHopeful]

Now a serious (non-snarky) question......... I wonder if the "universal" currency will change from US to pounds?

You mean change to yuan?

Nah, won't happen anytime soon. China will likely continue to control parts of their currency to keep it undervalued so that their exports remain enticing and their gigantic workforce remains employed.

[markj11]

Is this the drunk thread?

[bigh0rt]

wat

[urbanbreez]

Yeah I don't think if you owe $200 on your credit card, you can ring the bank and say "BUT BIG PHIL AND JIMBO AT THE PUB OWE ME $150 EACH!!!!!ONE!!!"

Your "money" is no good here, America



Now a serious (non-snarky) question......... I wonder if the "universal" currency will change from US to pounds?

no, but i would say that with account receivables (phil and jimbo) i had a net surplus credit of $100.

[lastingsgriller]

Yeah I don't think if you owe $200 on your credit card, you can ring the bank and say "BUT BIG PHIL AND JIMBO AT THE PUB OWE ME $150 EACH!!!!!ONE!!!"

Your "money" is no good here, America



Now a serious (non-snarky) question......... I wonder if the "universal" currency will change from US to pounds?

no, but i would say that with account receivables (phil and jimbo) i had a net surplus credit of $100.

yeah... but eventually you're gonna have to write off phil and jimbo's debt as bad debt expense. you're never getting that money. they'd rather let you sleep with their sister.