Saving Advice Forums  

Go Back   Saving Advice Forums > Financial Chit Chat > Everything Else Financial

Everything Else Financial If it doesn't belong in any of the other forums, it goes here.

Like Tree4Likes
  • 1 Post By GrimJack
  • 1 Post By GrimJack
  • 2 Post By Sam1000

Reply
 
LinkBack Thread Tools
  #1 (permalink)  
Old 02-26-2017, 10:08 AM
Banned
 
Join Date: Jun 2010
Forum Posts: 1,611
Default Is spending more than your earning sustainable?

I'm curious how our government and every government has done it for so long?

I know how, it's the same way your neighbor is surviving, on credit
Reply With Quote
  #2 (permalink)  
Old 02-26-2017, 02:26 PM
greenskeeper's Avatar
$ Saving College Junior
 
Join Date: Aug 2010
Forum Posts: 1,007
Default

The government prints it's own money, so to an extent there is no reason to have a budget surplus. It's the paper money holders that suffer with lower purchasing power.

100% of FIAT currencies have failed. We are only 46 years into our "experiment"


__________________
Gunga galunga...gunga -- gunga galunga.
Reply With Quote
  #3 (permalink)  
Old 02-26-2017, 06:00 PM
$ Saving College Senior
 
Join Date: Mar 2016
Forum Posts: 1,645
Default

All of the debt is financed by bond and note holders. As long as the payments on these obligations is honored by the treasury, all is good.

The moment that the obligations are not honored, it will be a truly hellish day.

Meanwhile, "just print more money" falls into the same myopic bucket as "just raise minimum wage":

You cannot create more wealth with the stroke of a pen.
__________________
How can you have any pudding if you don't eat your meat?
Reply With Quote
  #4 (permalink)  
Old 02-26-2017, 06:25 PM
Banned
 
Join Date: Jun 2010
Forum Posts: 1,611
Default

Quote:
Originally Posted by greenskeeper View Post
It's the paper money holders that suffer with lower purchasing power.

100% of FIAT currencies have failed. We are only 46 years into our "experiment


Golds purchasing power has done well


Reply With Quote
  #5 (permalink)  
Old 04-03-2017, 10:04 PM
$ Saving Second Grader
 
Join Date: Apr 2017
Forum Posts: 13
Default

Quote:
Originally Posted by 97guns View Post
I'm curious how our government and every government has done it for so long?

I know how, it's the same way your neighbor is surviving, on credit
As much as possible, I would not go for credits or borrowing a loan. I don't think, its a good idea to spend more than your capability. You may do so if its really necessary like for health and education purposes.
Reply With Quote
  #6 (permalink)  
Old 04-16-2017, 02:03 AM
GrimJack's Avatar
$ Saving College Sophomore
 
Join Date: Jan 2006
Location: Seattle
Forum Posts: 846
Default

Quote:
Originally Posted by greenskeeper View Post
The government prints it's own money, so to an extent there is no reason to have a budget surplus. It's the paper money holders that suffer with lower purchasing power.

100% of FIAT currencies have failed. We are only 46 years into our "experiment"

]
Um, all currencies are fiat currencies so where does that 100% figure for failure come from? there is not enough gold mined or unmined to cover a fraction of world trade - how do you propose to support a non-fiat currency? Even trying to use gold as a standard is essentially 'fiat' since gold's only value is what we assign to it. How do you balance daily trade imbalances? Flying gold around the world certainly won't work since the shipping costs would devalue the gold.

In 2015 the world economy was $113.5 trillion - in the US the median income was $56.5k; in 1913, the median income was $800, put that on your graph. One dollar today buys you things that did not exist in 1913.
Quote:
Bernanke, trying not to slip in the patches of blood on the floor, struggled with Greenspan. The older man moved like a snake that moved like a former Fed Chairman who moved like a ninja. At last, Bernanke got a solid grip on Greenspanís collar and hurled him through the fourth wall, knocking you to the ground.

Improvising a tourniquet from the remains of the snake left over from the earlier simile, Bernanke moved on through the hallways.
Nutria likes this.
__________________
IYQYQR
Reply With Quote
  #7 (permalink)  
Old 04-16-2017, 02:17 AM
GrimJack's Avatar
$ Saving College Sophomore
 
Join Date: Jan 2006
Location: Seattle
Forum Posts: 846
Default

Quote:
Originally Posted by 97guns View Post
I'm curious how our government and every government has done it for so long?

I know how, it's the same way your neighbor is surviving, on credit
Actually comparing running the government to a family or even to a business is pretty pointless since neither have anything to do with running a government. How, exactly do people expect the government to balance a budget when it spends $60 million in one bomb attack on one Syrian airport w/o destroying the runways? Your neighbor does not have to buy bombs, support a military, run airports, et cetera and most businesses don't either.

btb - most of your neighbors are probably carrying a mortgage, you might be also.
Nutria likes this.
__________________
IYQYQR
Reply With Quote
  #8 (permalink)  
Old 07-11-2017, 03:15 AM
$ Saving Fourth Grader
 
Join Date: Jun 2017
Location: tampa
Forum Posts: 22
Default

Spending somewhere is always equal to the earning there. However, the vice versa is not true. Earning has two getaways Savings and Spending.

I guess Spending triumphs in a superficial way!!
clatoden99 and colby99 like this.
Reply With Quote
  #9 (permalink)  
Old 07-11-2017, 07:20 AM
$ Saving Fourth Grader
 
Join Date: Jul 2015
Forum Posts: 34
Default

I live by the saying, "Live below your means".
Reply With Quote
  #10 (permalink)  
Old 10-12-2017, 01:08 PM
$ Saving College Senior
 
Join Date: May 2015
Forum Posts: 1,722
Default

I'm curious how our government and every government has done it for so long?

Two interconnected reasons:
  • being the biggest, most important world reserve currency, and
  • being the petro-currency.

Plus being by far the wealthiest country.

Of course, this is not sustainable in the long term, and everyone knows it, but the country has dug itself into a deep "high benefits, low taxes" hole that no one really wants to climb out of.
Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are Off



All times are GMT -7. The time now is 11:06 PM.


Powered by vBulletin®
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.