[Unknown Target]

Well I figure it's time we start discussing it. Some people are saying it'll all be fine, and other people are saying the quantative easing strategy being employed by the Federal Reserve will lead to hyper inflation in the near future.

Thoughts?

[Klaustrophobia]

my thoughts on the US debt is the government needs to stop spending more money than it has.  end of thoughts.

[Spoon]

The american debt will prove them fatal
and once the US goes down, the dutch will rise and claim world domination!

[Hades]

The american debt will prove them fatal
and once the US goes down, the dutch will rise and claim world domination!

I'm pretty sure Mexico or even Greece would rise before the dutch

[Ravenholme]

The american debt will prove them fatal
and once the US goes down, the dutch will rise and claim world domination!

I for one welcome our new gouda-wielding overlords!

It's a tasty cheese.

[Flipside]

Remove your sandal and follow the holy Gouda!

Oh...wait...

Seriously though, debt is a worrying trend for a lot of countries, I remember saying years ago that I was concerned about the fact that there is enough money in the world to buy everything in it several times over, a closed system that is in constant debt to itself is headed for collapse.

America could, iif it cut back to absolute basics, be self-sufficient it can easily provide enough to feed, clothe and power its own citizens, which is why nobody is running around screaming 'Aaaargh!' about it, but the problem is that the austerity measures are largely band-aids over a gaping wound.

[JCDNWarrior]

Anyhow, it's important to be able to discuss things seriously too - with a pinch of salt but nonetheless - I do believe things are starting to go crazy. I'm not as worried for my personal future given i just got hired and got my own securities in place, but I don't think the dollar and Euro are going to last very long with current inflation rates, let alone a possible hyper inflation.

However the current U.S. debt is so high that even if the government would stop spending at all, the amount in derivatives will still make this ship sink.

That's why it's probably a good idea, from what i know (And i am not a financial expert) to be ready at least, storable foods seems like a good idea, water filters, probably air filters, that kind of thing. Backup energy seems ideal too.. would hate to have the financial world interfere with our ability to communicate, develop mods and assets for FS2, from working or reaching work, or even surviving cause you can't afford the food or keep it refrigerated in some cases.

So, I just hope things aren't as serious as they may be, but I can't advice just waiting it out doing nothing about it in your personal lives, at least.

[The E]

Oh man, the paranoia is astonishing. Oh teh noes, finance is scary complicated, therefore we must invest in apocalypse-proofing.

I mean, seriously? It's almost as if you think that society was so married to the financial institutions that without them, everything would stop instantly. While I certainly hope we'll never have to test it, I do like to think that western society does have more robust failure modes than that.

[StarSlayer]

Oh man, the paranoia is astonishing. Oh teh noes, finance is scary complicated, therefore we must invest in apocalypse-proofing.

I mean, seriously? It's almost as if you think that society was so married to the financial institutions that without them, everything would stop instantly. While I certainly hope we'll never have to test it, I do like to think that western society does have more robust failure modes than that.

We've reached Failure Mode: Assless Chaps!

[Unknown Target]

Oh man, the paranoia is astonishing. Oh teh noes, finance is scary complicated, therefore we must invest in apocalypse-proofing.

I mean, seriously? It's almost as if you think that society was so married to the financial institutions that without them, everything would stop instantly. While I certainly hope we'll never have to test it, I do like to think that western society does have more robust failure modes than that.

I've been trying to convince people in the US to start bartering and growing their own food. Pretty much no one has come along with that - everyone thinks that without money, society collapses. That's the "word on the street" as it were. Yes, I've actually gone out and talked to people instead of blindly theorizing.

That being said, like I've said before and am saying again; never underestimate the propensity of a system to perpetuate itself.

It's possible that hardcore "austerity measures" could go into effect should the worse happen, and the people being so fearful of anarchy and chaos that they go along with things they wouldn't normally accept. It matters more what the people believe will happen than what will actually happen - because the latter is the one they plan for.

[StarSlayer]

I'll trade my skills with the blade for some of your tasty mead friend

[Nuke]

since i can only read the parts of the debate not blocked by my cat, il just say if worst comes to worst, we can just nuke our creditors.

that said i think anarchy and chaos would be pretty cool.

[Kosh]

Oh man, the paranoia is astonishing. Oh teh noes, finance is scary complicated, therefore we must invest in apocalypse-proofing.

I mean, seriously? It's almost as if you think that society was so married to the financial institutions that without them, everything would stop instantly. While I certainly hope we'll never have to test it, I do like to think that western society does have more robust failure modes than that.

What they are talking about is the US national debt, which is a rising and very real problem. Right now it stands at $14 trillion, and is going up by ~$1.5 trillion a year. Why is this a problem? Because if it keeps up it will sink the dollar. It's already happening.

[SypheDMar]

Commodity-Commmodity trading economy: Refer to Craigslist.

[Grizzly]

The american debt will prove them fatal
and once the US goes down, the dutch will rise and claim world domination!

I'm pretty sure Mexico or even Greece would rise before the dutch

They will fall the same way the US did (Greece almost did that, anyway).
WE actually know how to spend our stuff! Everytime you buy our Gouda Cheese, 6% goes directly to the goverment! That way, we keep our---

Anyway, the solution is in the above: The US always talks about cutting spending, but why do they never talk about raising taxes? They don't have that much taxes. They even subsidize the oil industry, if they put taxes on Petrol, it would do great things to the enviroment and their bank balance. For example.

[Kosh]

The american debt will prove them fatal
and once the US goes down, the dutch will rise and claim world domination!

I'm pretty sure Mexico or even Greece would rise before the dutch

They will fall the same way the US did (Greece almost did that, anyway).
WE actually know how to spend our stuff! Everytime you buy our Gouda Cheese, 6% goes directly to the goverment! That way, we keep our---

Anyway, the solution is in the above: The US always talks about cutting spending, but why do they never talk about raising taxes? They don't have that much taxes. They even subsidize the oil industry, if they put taxes on Petrol, it would do great things to the enviroment and their bank balance. For example.

There are petrol taxes. But in any case, spending cuts are always talked about but never happen to a significant degree, hence our current situation.

[The E]

Tax raises are never talked about, but should happen. The US need some revenue, but it seems they forgot that the states' main source of income is taxes, and that said income has been cut rather severely.

[Nuclear1]

But if we raise taxes, then CEOs won't be able to buy a third beach house and another Maserati while sending jobs to Mexico and India create more jobs for Americans!

why do you hate capitalism and freedom

[The E]

Cos I'm a socialist. Wealth redistribution FTW.

[Mustang19]

Anywhere else in the world people would be pushing to close the deficit mainly with taxes. The US could pretty easily fund current spending and start paying down debt immediately if it raised taxes to, say, French levels. Here's a nice table from my trusted source. Interest payments are included with spending.

http://en.wikipedia.org/wiki/Government_spending

That's not going to happen of course. The Dems are going to keep pretending to help the middle class while pushing just barely less severe cuts than the GOP.

As for QE there are going to be long term effects. Countries won't want to export to the US if the dollar is cheap; this is already part of what's happening with oil as Saudi Arabia is shying away from capacity expansion. But the rest is armageddon fantasy. QE is an entirely separate issue from federal debt, though.