Deficit spending adds net financial assets to the economy. The balance sheet of the government is the contra balance of the non government sector. Ever wonder why cash for you is an asset but it's listed as a liability for the government? You are out of your league here in this discussion im afraid.
Not out of my league. I'm not an expert but everything I write comes from experts. That's what reporters do, report. Deficit spending is borrowing like any kind of borrowing. If you take out a loan to buy a car, it's not a "net" gain of financial assets. You get $50,000 and a car but you have to pay it back. If what you say is true, then explain how this worked from 1998 - 2001 when the US actually had a surplus. By your logic, that would be a net liability to the economy. Which it wasn't.
The real problem isn't high interest rates or even government borrowing. It's the fiat-money machine behind them. Credit expansion and central-bank manipulation of interest rates allow governments to borrow and spend on a scale that genuine saving could never sustain.
The national debt just represents the national savings of the non government sector. Are you arguing there is too much private sector savings? Also, let's not forget, a large amount of the national debt is held by the government itself, so using consolidation accounting, this shouldn't be accounted for at the national level.
Total wealth isn’t increasing. The GDP FIGURE is increasing since they underestimate inflation. Asset prices are increasing since they direct value to the already rich who park that value in assets.
Wittner that’s just ridiculous. How could you get something so wrong? Deficit spending is ANTI-Savings. Spending on infrastructure could be classified as savings but financing it out of deficits is anti-savings.
It destroys a lot of wealth too. All this money comes into the US to buy debt and US property. US resources become increasingly foreign owned. The wealth dies with a lot of pointless public sector salaries, bullshit corporate jobs (see Graeber) and subsidies to bankers and their preferred clients.
We are getting more and more remote from the 50’s manufacturing superpower and the 80’s entrepreneurial miracle.
This is why you can’t fight for shit any more. You are getting outclassed in infrastructure and the factories. This coming off what should have been an insurmountable head start.
Truly this is an appalling and embarrassing failure from the most entrepreneurial country the planet has ever seen.
Deficits destroy wealth? Who's wealth? Why is total wealth increasing then? By their very definition, deficits add net dollars to the economy so are literally the opposite of destroying wealth. Yet again, you are wrong. The real problem how the deficit is split in the economy and who owns it, which disproportionately is owned by the top wealth brackets.
Calling the national debt “national savings” doesn't make it genuine saving. Genuine saving means people have actually foregone consumption and made resources available for future production.
Government debt doesn't create new wealth; it merely allows the state to use newly minted paper to outbid private citizens for resources that already exist. Banks, government and politically connected firms get the resources and labour; the rest of us get the bill in the form of higher prices.
Calling it “private savings” ignores who ultimately has to pay. The private sector as a whole ultimately pays through taxation, inflation and reduced purchasing power. It's like borrowing from yourself and then congratulating yourself for becoming richer because you received your own IOU.
And consolidation accounting doesn't change that reality. Debt one government entity owes another can be cancelled on a spreadsheet, but you cannot consolidate away the real resources government has already taken from the private sector.
I think this was Trump's plan along time ago to use tariff's and start a needless WAR which no country need's to bring Social Security to a halt. You might not think Trump us not that smart but i believe he knows what he is doing will work.If he does not accomplish that then he or someone else can blame some other smuck. These so called rich people are going to find out what happens when you bend the back's of blue collar workers.I want allude on that because,it's unimportant.
Even more damaging may be the impact that higher rates will have on bringing down the entire economy and pop he AI bubble. Ray Dalio has made the case in recent Fortune interview. Would love to hear Rick's take on it.
Deficit spending adds net financial assets to the economy. The balance sheet of the government is the contra balance of the non government sector. Ever wonder why cash for you is an asset but it's listed as a liability for the government? You are out of your league here in this discussion im afraid.
Not out of my league. I'm not an expert but everything I write comes from experts. That's what reporters do, report. Deficit spending is borrowing like any kind of borrowing. If you take out a loan to buy a car, it's not a "net" gain of financial assets. You get $50,000 and a car but you have to pay it back. If what you say is true, then explain how this worked from 1998 - 2001 when the US actually had a surplus. By your logic, that would be a net liability to the economy. Which it wasn't.
The real problem isn't high interest rates or even government borrowing. It's the fiat-money machine behind them. Credit expansion and central-bank manipulation of interest rates allow governments to borrow and spend on a scale that genuine saving could never sustain.
The national debt just represents the national savings of the non government sector. Are you arguing there is too much private sector savings? Also, let's not forget, a large amount of the national debt is held by the government itself, so using consolidation accounting, this shouldn't be accounted for at the national level.
Total wealth isn’t increasing. The GDP FIGURE is increasing since they underestimate inflation. Asset prices are increasing since they direct value to the already rich who park that value in assets.
Wittner that’s just ridiculous. How could you get something so wrong? Deficit spending is ANTI-Savings. Spending on infrastructure could be classified as savings but financing it out of deficits is anti-savings.
American deficits are where wealth goes to die.
So the US economy, the richest economy in the world has run deficits for 50 out of the last 56 years. But sure, deficits dont create wealth.
The US economy creates tremendous amounts of wealth. Government deficits aren’t the reason. The private sector is the reason
It destroys a lot of wealth too. All this money comes into the US to buy debt and US property. US resources become increasingly foreign owned. The wealth dies with a lot of pointless public sector salaries, bullshit corporate jobs (see Graeber) and subsidies to bankers and their preferred clients.
We are getting more and more remote from the 50’s manufacturing superpower and the 80’s entrepreneurial miracle.
This is why you can’t fight for shit any more. You are getting outclassed in infrastructure and the factories. This coming off what should have been an insurmountable head start.
Truly this is an appalling and embarrassing failure from the most entrepreneurial country the planet has ever seen.
Deficits destroy wealth and the streets fill up with homeless people. Your economy is a disgrace and a train wreck for fuck sakes.
Who’s economy are we talking about here I’m losing track
The US. Newman you are a Jew. So it’s hard for you to admit to yourself that your crowd have destroyed the US.
Come clean nigger. Your excuses will not fly with me.
Deficits destroy wealth? Who's wealth? Why is total wealth increasing then? By their very definition, deficits add net dollars to the economy so are literally the opposite of destroying wealth. Yet again, you are wrong. The real problem how the deficit is split in the economy and who owns it, which disproportionately is owned by the top wealth brackets.
Calling the national debt “national savings” doesn't make it genuine saving. Genuine saving means people have actually foregone consumption and made resources available for future production.
Government debt doesn't create new wealth; it merely allows the state to use newly minted paper to outbid private citizens for resources that already exist. Banks, government and politically connected firms get the resources and labour; the rest of us get the bill in the form of higher prices.
Calling it “private savings” ignores who ultimately has to pay. The private sector as a whole ultimately pays through taxation, inflation and reduced purchasing power. It's like borrowing from yourself and then congratulating yourself for becoming richer because you received your own IOU.
And consolidation accounting doesn't change that reality. Debt one government entity owes another can be cancelled on a spreadsheet, but you cannot consolidate away the real resources government has already taken from the private sector.
Pristine savings is retained profits in business. But sure your definition is sound. How did Wittner go so badly astray?
I think this was Trump's plan along time ago to use tariff's and start a needless WAR which no country need's to bring Social Security to a halt. You might not think Trump us not that smart but i believe he knows what he is doing will work.If he does not accomplish that then he or someone else can blame some other smuck. These so called rich people are going to find out what happens when you bend the back's of blue collar workers.I want allude on that because,it's unimportant.
Even more damaging may be the impact that higher rates will have on bringing down the entire economy and pop he AI bubble. Ray Dalio has made the case in recent Fortune interview. Would love to hear Rick's take on it.
https://fortune.com/2026/06/04/ray-dalio-stock-market-1929-2000-bubble-debt-crisis-point-of-no-return/
Coming!