12-01-2016, 08:30 PM
(This post was last modified: 12-01-2016, 08:35 PM by Eric the Green.)
It does make some sense, what you say Warren. One concern is that I don't think we have reached the point where population growth has been eliminated. That's a bit of an exaggeration, though it may be true two or three decades from now.
Also, if Trump tries to repeal NAFTA and enforce deportation, confiscating immigrants' payments sent back home to pay for a wall, the question arises whether the Mexican economy will collapse, speeding up immigration legal and illegal to such a point that even Trump can't stop it. Plus, his refusal to do America's part to care for refugees from the Arab Spring Revolution, and more refugees coming because of flooded-out and burned out nations in upheaval, the migrations will only increase as long as climate change continues and population growth continues abroad. So there is a concern about continuing immigration cancelling out the decline in domestic birth rates.
You may have a point that permanent debt and its monetization is manageable with slowing or reversing population growth. I am skeptical however about how such debt makes us vulnerable to being unable to fund the government. That is indeed a concern for those of us on the left, at least; as well as anyone concerned about foreign policy and the military. There's no telling too when some Tea Party might be able to reject raising the debt ceiling, thus creating default. That would be a problem brought on by ourselves rather than the debt per se, but it is a danger out there.
Another concern was voiced in recent posts by Rags and Mr. X_AD. We need a stimulus that raises interest rates because low interest rates wipe out the motivation to work, save and invest. People need a return on investments, and will call for stimulus. Lowering taxes does not work; printing more money or government spending are better (especially the latter). That would mean interest on the debt would also rise, so in that case high debt would come back to bite us.
Where is William Jennings Bryan when you need him? I believe his current reincarnation is, in effect, Janet Yellen. The free silver of our time is called QE. Too bad it doesn't reach the people too well. But that's "monetization" through the only route currently available as far as I know. We have no other government agency able to act.
Also, if Trump tries to repeal NAFTA and enforce deportation, confiscating immigrants' payments sent back home to pay for a wall, the question arises whether the Mexican economy will collapse, speeding up immigration legal and illegal to such a point that even Trump can't stop it. Plus, his refusal to do America's part to care for refugees from the Arab Spring Revolution, and more refugees coming because of flooded-out and burned out nations in upheaval, the migrations will only increase as long as climate change continues and population growth continues abroad. So there is a concern about continuing immigration cancelling out the decline in domestic birth rates.
You may have a point that permanent debt and its monetization is manageable with slowing or reversing population growth. I am skeptical however about how such debt makes us vulnerable to being unable to fund the government. That is indeed a concern for those of us on the left, at least; as well as anyone concerned about foreign policy and the military. There's no telling too when some Tea Party might be able to reject raising the debt ceiling, thus creating default. That would be a problem brought on by ourselves rather than the debt per se, but it is a danger out there.
Another concern was voiced in recent posts by Rags and Mr. X_AD. We need a stimulus that raises interest rates because low interest rates wipe out the motivation to work, save and invest. People need a return on investments, and will call for stimulus. Lowering taxes does not work; printing more money or government spending are better (especially the latter). That would mean interest on the debt would also rise, so in that case high debt would come back to bite us.
Where is William Jennings Bryan when you need him? I believe his current reincarnation is, in effect, Janet Yellen. The free silver of our time is called QE. Too bad it doesn't reach the people too well. But that's "monetization" through the only route currently available as far as I know. We have no other government agency able to act.