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U.S. debt-to-GDP ratio reaches 123%

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Re: U.S. debt-to-GDP ratio reaches 123%

#211
post #7

Earlier quoted context omitted.

Both can be true. The previous administration bailed out the unfunded pension funds of cities and state employees when they did Covid-19 bailouts despite it having nothing to do with Covid-19 and without requiring these local governments to properly fund these pensions moving forward. They bailed these pension programs out many times more than their financial support for restaurants they forced closed. Basically, Ame…

The problem is that half the political system thinks you can cut taxes and grow revenues. Which is an intentional strategy to repeal social programs that they’d never get the votes to do so via legislation

They do not think this. They pretend to still believe this in order to continue their 'starve the beast' strategy, but their actual goal is to damage the government/run up debt, not the pretend 'trickle down economics' they claim.

Re: U.S. debt-to-GDP ratio reaches 123%

#212

Earlier quoted context omitted.

This Finance 101 perspective is too clever by half. Sounds like a great idea, right? But what if something out of your control[1] happens, and average interest rates on the debt burden go up from 2% to 14%? The USA can't afford to just pay off all of its debts. It must continuallly roll over it's old debts to new debts, and could easily find itself in a situation where debt servicing costs go up by an order of magnit…

Not a finance person, but my understanding is that the US govt is indebted via bonds which pay according to their issued yields. So the interest rates are the yield rates of said bonds, and if the dollar were undergo hyperinflation, then said debt would inflate away. Sure, that would mean getting future financing would be difficult and expensive for the US, but that's a problem down the line, and goes beyond just the…

Copy-pasting my comment from elsewhere in the thread:

This is a fantasy. Do you really think lenders would just not notice if America inflated its currency away to get rid of its debts, and they'd just say "aw shucks you got us. Anyways, here's a new loan at the same terms as last time." ?

And what about the American public? Look at how much Americans freaked out over a year or two of 6% yearly inflation. How do you think Americans would respond to 30% monthly inflation like in Argentina or Turkey?

In almost all cases, you're better off just defaulting on loans than pursuing hyperinflation. The reason to go for hyperinflation is if you're worried about your creditors invading you for defaulting.

Re: U.S. debt-to-GDP ratio reaches 123%

#213
post #182

Earlier quoted context omitted.

> * really cheap, making it possible to saturate target's defence Which is precisely the reason to attack now before this problem becomes much worse and then Iran adds in nuclear weapons too. > However, right now Iran seems to have the strategic and weapons (no really*) advantages vs. the USA that Ukraine has vs. Russia, so it is a risk worth taking seriously. I just disagree. Even in your scenario for example the US…

> Which is precisely the reason to attack now before this problem becomes much worse and then Iran adds in nuclear weapons too. Perhaps. However, there are many alternatives to "attack" besides "do nothing". > Even in your scenario for example the US GDP falling 10%, well, we can stomach that. If we can't, we should pack up the military because any war is going to threaten GDP and we won't be able to defend NATO agai…

> Perhaps. However, there are many alternatives to "attack" besides "do nothing".

Yes, and we've tried lots of different things.

> You can't defend Taiwan, full stop. If and when China decides to attack, they're smart enough to make sure to use the right weapons for the conflict, and that any allies Taiwan has won't get involved.

You're making the same mistake others do here by assuming that China can do things and the US can't respond or also strategize based on what they may do.

China's smart enough to use the right weapons for the conflict (when was their last war?).

Ok the US is smart enough to also use the right weapons for the conflict.

> Right now, the US is making this even easier for China by depleting the only weapons it does have, though this is only of minor relevance as what the US has is not even a good match for a China conflict in the first place. The best Taiwan can hope for in the near-term is a mix of promising it will be pyrrhic, and possibly surprising everyone with some anti-drone solution that has yet to be demonstrated.

Why? This is precisely the kind of conflict the United States is good at - air and naval power

And if you don't think the US can defend Taiwan then why concern is there about depleting missiles we can't and won't use to defend Taiwan anyway?

> With this, you are making the same mistake as with Vietnam, "We thought we were winning because we killed more of them than they killed of us", or whatever the quote was.

No, it's been, what, 60 years since Vietnam? We're not trying to stop an internal revolution. Circumstances are different. Internet exists. &c. - there may be loose comparisons but Vietnam isn't and has never been strategically significant to America, necessitating different calculations.

> The global response so far has been "America caused this mess. Sure almost all of us think Iran's leadership is awful, but this is America's mess, America can damn well clean up after itself."

I know, and unfortunately the globe has yet again had an immature and unrealistic response which is precisely why the United States is increasingly eschewing militarily useless allies and taking matters into its own hands.

> Quite a lot of us are even hoping you'll get stuck there, wasting your weapons and personnel, just so you don't make another threat against the sovereignties of technically-still-allies.

Well it's impossible for us to get stuck there. We can just like, leave if we want and then the rest of the world will have to pay Iran's tolls. You're lucky we even care to stop them. We should have attacked them for supplying drones to Russia in the first place.

Re: U.S. debt-to-GDP ratio reaches 123%

#214
post #181

Earlier quoted context omitted.

> I didn't do anything, that wasn't me. Ok you're defending it. > I don't claim anything, but if this isn't overspending then I think we agree to disagree. Ok if it's over-spending then let's cut the programs that align with my ideology instead of cutting military spending. > You want to solve that with weapons?? That'll only make everyone drop the dollar, as simple as that. Not worried at all - those dollars become…

> Ok if it's over-spending then let's cut the programs that align with my ideology instead of cutting military spending. Yes, I think the question of whether or not the US is living above its means is settled. Where you cut is a political decision. I certainly think the US can reduce its military spending, with an emphasis on reduce. > The strength of the dollar is because of the actual physical reality and capabilit…

> Yes, I think the question of whether or not the US is living above its means is settled. Where you cut is a political decision. I certainly think the US can reduce its military spending, with an emphasis on reduce.

It's not quite settled. GDP can increase much more, inflation eats away at the debt, &c. But I am not sure cutting the military makes sense, unless you believe the US should retreat from Asia, NATO, &c.

> I don't think this is true at all. It's value is a result of being the reserve currency of the world and as a result a lot of things being denominated in USD. The financial system will lose so much if the dollar devalues significantly that that's a bad outcome to almost everyone, not just the US.

It's precisely true. That's what fiat currency effectively is. The USD is just one of many reserve currencies. The dominant one certainly, but it's just one currency held in reserve by banks, hence reserve currency.

> The US has never controlled the strait.

Sure, but neither does Iran. Just to be super clear.

> The biggest win for Iran is that it has asserted being able to block it. The US can block any ships going to and coming from Iran's ports. It cannot and has never been able to guarantee safe passage through the strait. That last fact is Iran's biggest win of the conflict as it has now shown that even when the US goes full scale war, it can still shut off the strait for all intents and purposes.

US isn't at full-scale war, also to be clear. Yes Iran can block the passage of ships. But the US blocks the passage of ships too. What I find interesting here though is this specific comment:

> The biggest win for Iran is that it has asserted being able to block it.

The US and learned people such as myself already knew Iran could block the Strait and the passage of ships. This is only news to the general populace who has not been following Iran's years-long buildup of missile, drone, mine, and other capabilities. In other words, did you not know this was happening? That would explain why you are not understanding why this had to be done as soon as possible.

> The other miscalculation is that while you might have air superiority, it should be clear by now that the US can't win from the air alone. And Iran might have known/gambled that the US wasn't willing to commit to a ground offensive. As bad as it sounds to be bombed whenever your enemy wants, from a strategic point of view I think this makes sense. Horrible for the population but the regime doesn't care.

I don't disagree with you besides calling this a miscalculation.

> Uh no. The US lost quite a bit of respect I think for this intervention.

Ultimately nobody in the US really cares.

> We need to see what a final cease fire might look like but the whole world is essentially asking what the hell this whole endeavour was for. The whole world is paying higher gas prices and in a lot of other countries especially south east Asia there is a much bigger dependency on Middle East oil. Those people aren't happy about this at all. It might not even be higher prices but outright shortages. And wait for food prices to shoot up because of more expensive fertilizer for example.

Right, and again this misunderstanding is precisely the problem. Iran is working toward at least these 3 things:

Nuclear weapons, double/triple/quadruple existing missile and drone and other capabilities as mentioned above, and expansion and further utilization of proxy forces to destabilize other Middle Eastern countries.

When the "rest of the world" is wondering what is going on or what this endeavor for, somehow they are missing that those 3 things mentioned above will not be tolerated. Since the world is unwilling (incapable) of solving this problem, the US has decided to solve that problem and now the rest of the world must just accept those consequences including higher prices.

> In the end I think it comes down to one simple assumption. You seem to be convinced that with enough military spending the US can force a country to do what it wants. I think that that's not possible at all (see Russia and the Iran conflict right now) let alone at a cost that any country can bear. The US clearly is already struggling to pay for it all.

We're not really struggling though. We should be weary of the debt being so high, but plenty of western or western-aligned nations have high debt too. It's not that the US needs to spend more to force a country to do what it wants, that just happens anyway for the most part, but it's to build out the capabilities necessary to shore up defenses. Look at US military spending as a percentage of GDP and compare that to other nations.

> Every US household knows this, they have to do it every month.

Household budgets don't work the same as government budgets.

Re: U.S. debt-to-GDP ratio reaches 123%

#215
post #197

Earlier quoted context omitted.

Sorry, I don't agree with you at all and continuing to argue about it just makes me more convinced the OP was right to point out those specific items. I'm not interested in complaints about the GDP to debt ratio being too high if when someone points out wasteful expense, regardless of how minor, they and others are met with derision and arguments. At that point yea spend whatever who cares about the debt?

I don’t want my tax dollars wasted. We do agree on that, right? The government does waste some money. We agree on that too, right? I’m open to hearing why you think @bilsbie’s list is valid. I’m skeptical, and I’ll offer some reasons why, but please convince me, I will listen. Is there a credible source for the claim that money is being spent studying the effects of yoga on goats? I’ve looked a bunch already, and the…

> I don’t want my tax dollars wasted. We do agree on that, right? The government does waste some money. We agree on that too, right?

Yes, so why are you arguing with me? The specific claims aren't what matter (goat yoga) because you and I both know that there are small line items like these that are truly wasteful. I'm not defending the specific list, I'm arguing that we do waste small money on grants and such like what the OP wrote about and regardless of how small the dollar amount is, waste is waste.

Re: U.S. debt-to-GDP ratio reaches 123%

#216
post #197

Earlier quoted context omitted.

I don’t want my tax dollars wasted. We do agree on that, right? The government does waste some money. We agree on that too, right? I’m open to hearing why you think @bilsbie’s list is valid. I’m skeptical, and I’ll offer some reasons why, but please convince me, I will listen. Is there a credible source for the claim that money is being spent studying the effects of yoga on goats? I’ve looked a bunch already, and the…

> I don’t want my tax dollars wasted. We do agree on that, right? The government does waste some money. We agree on that too, right? Yes, so why are you arguing with me? The specific claims aren't what matter (goat yoga) because you and I both know that there are small line items like these that are truly wasteful. I'm not defending the specific list, I'm arguing that we do waste small money on grants and such like w…

You did defend the specific items, you said so explicitly, you used the word “specific” in your previous comment, your first sentence said you are now “more convinced the OP was right to point out those specific items”. These specific items completely undermine your point, don’t you see that? Lies and exaggeration do not help make your case, they do damage to your cause, they suggest the problem isn’t real because you can’t come up with true examples. If there’s a real problem that matters, surely you can come up with something that’s true, and not a Gish Gallop of bad faith slop.

Please - if there are valid, good faith examples “like” the list @bilsbie wrote, why don’t you list them and provide sources?

Now, given that I agree with you that the government wastes money, your question why am I arguing with you is a good question, and it’s a question that you should think harder about; why do I agree with the existence of waste but disagree with your examples? You do realize that nodoby wants the government to waste money, right? Well maybe nobody but some of the contractors getting no-bid contracts. The fact that most people agree with you and I on the basic premise means you don’t need to prove that point, and what we need to do is: 1- decide what our goals are, 2- gather true, factual, and accurate information about what waste is occurring, and 3- elect officials that will do the right thing and enact policy that increases our efficiency.

Now again, science funding in the US runs a pretty decent return on investment, economists seem to agree. If you disagree with that, then please provide some sources or analysis. And that includes ALL science funding, whether it sounds silly, whether it fails to produce results, and whether it’s inefficient or even wasteful. The country is getting back more money than it spends on science R&D, therefore it’s difficult to make the case that any one grant is “waste” when it’s part of a portfolio that is performing well and giving returns.

Science funding runs on the very same investment concepts that venture capital does, and sure enough venture capitalists ‘waste’ money on bad investments literally all the time. That is the nature of investment, it comes with risk and it involves failure.

Did you read about the Golden Goose Awards yet?

Re: U.S. debt-to-GDP ratio reaches 123%

#217
post #216

Earlier quoted context omitted.

> I don’t want my tax dollars wasted. We do agree on that, right? The government does waste some money. We agree on that too, right? Yes, so why are you arguing with me? The specific claims aren't what matter (goat yoga) because you and I both know that there are small line items like these that are truly wasteful. I'm not defending the specific list, I'm arguing that we do waste small money on grants and such like w…

You did defend the specific items, you said so explicitly, you used the word “specific” in your previous comment, your first sentence said you are now “more convinced the OP was right to point out those specific items”. These specific items completely undermine your point, don’t you see that? Lies and exaggeration do not help make your case, they do damage to your cause, they suggest the problem isn’t real because yo…

> You did defend the specific items, you said so explicitly, you used the word “specific” in your previous comment, your first sentence said you are now “more convinced the OP was right to point out those specific items”.

I said the OP was right to point those specific items out, I didn't say they were accurate. I haven't personally looked at each one, but it's certainly believable that the government might fund such things if for no other reason than we just fund a lot of things and some of them are unbelievably stupid.

The continued arguing about it is why I think they were right to point those specific items out. The more people protest "that didn't happen!1!!" the more I believe they probably did happen because if they didn't happen why are you spending so much time trying to convince me they didn't happen?

My point of view is this: yes the government sometimes wastes money on egregious things. While those things are typically relative small-dollar items, it still matters that such waste is stopped. If you disagree with that, I simply will never see eye to eye with you or anyone else. It's not about the specific items, they are either true or close to true in form, it's about the general point.

> Now again, science funding in the US runs a pretty decent return on investment, economists seem to agree. If you disagree with that, then please provide some sources or analysis.

I don't disagree with that. But that doesn't mean all "science" funding is created equal. I support science funding, generally speaking, but it's worth pointing out that supporting funding for science isn't necessarily the same thing as funding other academic pursuits.

Re: U.S. debt-to-GDP ratio reaches 123%

#218
post #216

Earlier quoted context omitted.

You did defend the specific items, you said so explicitly, you used the word “specific” in your previous comment, your first sentence said you are now “more convinced the OP was right to point out those specific items”. These specific items completely undermine your point, don’t you see that? Lies and exaggeration do not help make your case, they do damage to your cause, they suggest the problem isn’t real because yo…

> You did defend the specific items, you said so explicitly, you used the word “specific” in your previous comment, your first sentence said you are now “more convinced the OP was right to point out those specific items”. I said the OP was right to point those specific items out, I didn't say they were accurate. I haven't personally looked at each one, but it's certainly believable that the government might fund such…

You’re digging in your heels only because people here are trying to point out facts that you assume are challenging your broader point, and not because you believe the items are true? Why not actually find out if they’re true or not?

I have personally looked at each one of the items in @bilsbie’s list, as you can plainly see above. I totally recommend that you take some time to do the same, instead of just thinking it’s believable. You’ll either have real ammo for the thread, or more understanding of why people here are protesting. Either way you win, you get more real factual information.

By aligning yourself with these “specific items”, and by assuming that protest of them somehow makes them more believable, you’ve made it quite a bit harder to get your own general point across in this thread, speaking of waste.

> I support science funding

Yes! Me too. See, we agree on a lot of things. I just wanted to make sure it’s clear that doing science necessarily involves some failure, and it’s not possible to invest in science without expecting some of the grants to not work out. There’s no such thing as 100% efficiency when it comes to investment. Some waste will happen. The grants I would call waste are the ones that involve grift or scientific dishonesty, and not the grants that go to silly sounding things.

Science funding in the US is under fairly intense budget pressure, BTW. Many many (probably most) academics complain about the lack of funding. The people who tend to make lists like @bilsbie’s often seem to be somewhat ignorant of the process of applying for funding and how much scrutiny goes into every grant.

> it’s worth pointing out that supporting funding for science isn’t necessarily the same thing as funding other academic pursuits.

Great, let’s start there. Take all the science grants out of @bilsbie’s list, and let’s discuss the non-science academic funding that’s wasteful. Three of the seven items were complaining about science funding, and the other four items were non-academic. So what would that be? What “other” academic pursuits would you put on the list of waste?

Re: U.S. debt-to-GDP ratio reaches 123%

#219
post #182

Earlier quoted context omitted.

> Which is precisely the reason to attack now before this problem becomes much worse and then Iran adds in nuclear weapons too. Perhaps. However, there are many alternatives to "attack" besides "do nothing". > Even in your scenario for example the US GDP falling 10%, well, we can stomach that. If we can't, we should pack up the military because any war is going to threaten GDP and we won't be able to defend NATO agai…

> Perhaps. However, there are many alternatives to "attack" besides "do nothing". Yes, and we've tried lots of different things. > You can't defend Taiwan, full stop. If and when China decides to attack, they're smart enough to make sure to use the right weapons for the conflict, and that any allies Taiwan has won't get involved. You're making the same mistake others do here by assuming that China can do things and t…

> Yes, and we've tried lots of different things.

Until Trump came along and discarded those other things, several of those other things were working.

> Ok the US is smart enough to also use the right weapons for the conflict.

Demonstrably not today you aren't, but worse than that, the Trump-class battleship is clearly a step backwards. We don't yet know what a conflict with China (and anyone, let alone the USA) will look like because of the rapid changes we are seeing to drone warfare turning things from manoeuvre warfare to attritional warfare, but we do know China-vs-Taiwan would have a logistics chain of a few hundred kilometres while the USA entering theatre would need to cross the Pacific, so it would depend on either being there full time in sufficient numbers to deter (with necessarily very visible assets, which also makes the Chinese calculus very easy, even though the US calculus remains hard because a China that wants to invade will do the opposite of showing off), or having a lot of regional allies (who are currently all getting pissed off by US erratic behaviour).

(If I was Taiwan, I'd be doing three things right now: a novel anti-drone system, anti-ship drones, and actual literal nuclear deterrence).

> And if you don't think the US can defend Taiwan then why concern is there about depleting missiles we can't and won't use to defend Taiwan anyway?

Running out of even the wrong munitions for a fight against China, still means you've got nothing left even for other smaller conflicts where those weapons would have been useful.

> Why? This is precisely the kind of conflict the United States is good at - air and naval power

Before munitions started to get depleted, the 2023 war games I've seen said the US would lose a significant number of ships almost immediately, including 2 aircraft carriers in the baseline. That's a scenario where Taiwan is still successfully defended.

But 2023 was before Ukraine scaled drones to the level of saturation attacks. Unless you've got a much better anti-drone defence solution than anyone knows about yet, you'd likely lose every ship you send, and China wouldn't even need to be at sea to perform the attacks.

> No, it's been, what, 60 years since Vietnam? We're not trying to stop an internal revolution. Circumstances are different. Internet exists. &c. - there may be loose comparisons but Vietnam isn't and has never been strategically significant to America, necessitating different calculations.

You're trying to cause one (or at least Trump sometimes says words to this effect, who knows what's going on upstairs), Iran has a heavy hand on the internet, and Vietnam was seen at the time as of strategic importance WRT domino theory. You were in Vietnam for rather too long a time, and lost rather too many people, for it to be credible to claim "Vietnam isn't and has never been strategically significant to America".

All that said, "Circumstances are different" is both true and not hugely important to the argument I made: wars continue until one party reaches their pain threshold, and the US has a really low pain threshold compared to Iran.

The USA electorate's pain threshold could be higher, but (a) you're the aggressor, (b) your cobelligerent has been making itself wildly unpopular domestically for the last few years, and (c) Trump clearly prefers to punish his domestic opponents rather than bring them on board, even where it would help him.

> Well it's impossible for us to get stuck there. We can just like, leave if we want and then the rest of the world will have to pay Iran's tolls.

Nope, you're currently stuck there. You don't have to be, but you are.

If you let the world (and "the world" would include you too because of how the oil markets work) pay Iran's tolls, you tell the world that you can't beat small regional powers with control over important straits, so everyone does it.

Also, you've got Trump in charge, and his ego won't let him out.

Without Trump, you might be able to patch up the former with appropriate diplomatic arse-covering to get out without the downside, but right now, you're just as stuck as Russia is stuck with Ukraine.

Of course, Trump is the reason why the world wants you to be stuck in the first place, so that he can't use your armed forces to threaten us, which he's still doing e.g. the most recent comment I'm aware of from him about Greenland was last Friday.

> You're lucky we even care to stop them.

Stop them from what, exactly? The thing they only started doing in response to a coordinated strike from the US and Israel?

> We should have attacked them for supplying drones to Russia in the first place.

Ukraine did this all by itself, you will notice.

Re: U.S. debt-to-GDP ratio reaches 123%

#220
post #7

Earlier quoted context omitted.

Both can be true. The previous administration bailed out the unfunded pension funds of cities and state employees when they did Covid-19 bailouts despite it having nothing to do with Covid-19 and without requiring these local governments to properly fund these pensions moving forward. They bailed these pension programs out many times more than their financial support for restaurants they forced closed. Basically, Ame…

The problem is that half the political system thinks you can cut taxes and grow revenues. Which is an intentional strategy to repeal social programs that they’d never get the votes to do so via legislation

And the other half thinks you can raise taxes and grow revenues while keeping the loopholes for their elites.

The only thing intentional in politics is preserving your personal status and wealth. This is bipartisan.

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