Live data from Hacker News

As U.S. Debt Hits a Worrying Milestone, Washington Barely Notices

nytimes.com

21–23 of 23 posts

Re: As U.S. Debt Hits a Worrying Milestone, Washington Barely Notices

#21
post #14
post #10

Earlier quoted context omitted.

Did you ever consider the idea that not everyone wants to live in the typical "urban" environment? Not having public transportation or high-density housing nearby is a feature and a desirable property. > I’d first need to load myself up with a car payment and spend 4-5 figures per year Also a feature: if you can't afford this, perhaps that isn't the community for you? This is a fairly typical agenda: "I want to spend…

Part of what I think they were getting at is that suburban living is usually a long term burden on state budgets because the lower density means that maintenance costs aren't fully covered by tax revenue. If people want to live in these communities they should be expected to cover the costs, but since the necessary tax increases aren't popular they never get passed and the budget becomes unbalanced

Even worse, this cycle has been repeating since the advent of the automotive suburb:

1. New suburb is built, new residents are attracted by new housing stock and good value.

2. 40 years pass, the built infrastructure has aged to the point of needing refurbishment or replacement

3. Suburban government is forced to raise property taxes to cover maintenance

4. Affluent residents leave as they are attracted to a more recently built suburb with new housing stock and lower property taxes

5. Repeat steps 2-4

Re: As U.S. Debt Hits a Worrying Milestone, Washington Barely Notices

#22

US cannot default on US debt. It is not possible. World reserve=US does not work the same way. Most politicians know that the debt does not matter, but will use it as a rhetorical device. Does the treasury yield rate matter to the US gov, like the people at the top making the decisions, in any critical sense? I kind of feel like they can control it through policy or the fed, since $USD is literally what the world run…

The yield rate does mater in that it's correlated to inflation. If the yield goes up, investors sell bonds, and prices go up.

Modern Monetary Theory says that's OK. You stop the pretense of borrowing, then print as much money as you want. You then control inflation by taxation, and then simply burning the dollars you collect.

But the switch from one to the other would be unpleasant, since a lot of bond holders are depending on their bonds being worth more than the purchase price after inflation.

Re: As U.S. Debt Hits a Worrying Milestone, Washington Barely Notices

#23
post #15
post #11

Why does US debt even matter? Why does GDP even matter? Just print some cash and cancel the debt if the borrowers and creditors are two pockets on the same pants. All these abstractions don’t measure what matters anyway.

> Just print some cash and cancel the debt if the borrowers and creditors are two pockets on the same pants. With such a great plan what could possibly go wrong? https://www.reed.edu/economics/parker/f13/201/cases/Argentin... "Argentina, like many other chronic-inflation economies, went through repeated cycles of hyperinflation followed by attempts at stabilization. A typical cycle in such an inflationary economy beg…

MMT is a thing for societies that don’t peg their currencies to another.
Post reply on HN