Home | About | Donate

As Household Debt Hits $14 Trillion, Economists Say Fed Quantitative Easing Solution for Next Recession Insufficient

expound a bit more, I’m not sure what you are thinking of?

There is more than enough money to do all that needs doing, the problem is directing the money appropriately to free up the resources to accomplish the goals desired without creating other shortages and resource bottlenecks which would tend to generate inflation.

The five types of debt that I mention are not cross over any of the other. All distinct within themselves. When Illinois borrows billions just to pay pensions - there is a genuine big problem in these so called great economic boom times.

U.S. Treasury bonds do provide perceived safety compared to Trump bonds. And individuals purchase bonds as well as Chicago traders and peoples from around the world. Right now, muni bonds are the hot ticket to easy high interest income. I do think gov’t bonds compete with corporate bonds.but do not defeat them.

Splain how Caterpillar can borrow 248% of equity and pay out 5% dividend.

Oldie -
“14 trillion household
10 Trillion corporate debt
23.3 trillion USA debt
state and local debt…”

Oldie -

The 23.3 trillion is referring to Public debt (US government spending which provides currency to the private sector to provide the resources which support infrastructure, security and public assistance to private individuals and incorporations and also allow a private economy to exist).
All of the other types of debt you mention are Private debt. Debt held and incurred by Private individuals and Private corporations (both for profit and non-profit incorporations). While State and Local governments have a public nature in their action and interaction, they do not have the authority nor right to their own sovereign currencies thus their economics are dominated by the necessity to utilize the Federal government’s currency and their debts are in federal currency terms essentially making their spending Private State and local debts in a currency they don’t control.

US federal currency is essentially Federal IOUs, that the federal government spends into existence and then eliminates from existence through federal taxation. The currency that is in circulation in our economy is the difference between what the government spends into existence and what the government eliminates through taxation.

This difference between Public spending and Public taxation is nearly the entire Private economy, eliminating the difference (through nonsense like strict PayGo rules for instance) basically eliminates the Private economy or turns it into a black-market barter economy, this is simple macroeconomics and the nature of fiat currency in a sovereign economic nation.

Thank you Trakar.
I need to study your info.

There was a report about five weeks ago that there is over 4 trillion dollars floating around that is not on anyones ledger. Loot may be in Nevada, Delaware, Dubai or held in Panama papers hidden owners.

Humor:
Fiat did come to USA and purchase Chrysler. I do not know if they offered Lira, Dollars, Debt or pizza.

No problem,
unfortunately, there are too many being informed more by
“authoritative” accusation,
rather than academic explanation,
when we understand the system
it makes it more difficult for others to mislead us.
I admit to a perspective and a subjective,
but informed, understanding of the subject.
I’m open to learning from anyone, and everyone!
Most especially, however, when they take a similar approach
to discussions and exchanges.
Thank you, oldie!