American Politics 3.0 - Back to Brunch

[rubecube]

Originally Posted by afc wimbledon

deficit spending is fine right up to the point where it isnt fine at which point the whole economy craters in a week or two, the currency becomes completely worthless and the government losses any ability to function, things devolve down to bartering assets for food real quick.

The problem with both the pro and con argument is no one knows at which point it will all go sideways, but it will eventually all go sideways

Wouldn't the most sensible solution be to tie it to a % of GDP and then adjust whenever interest rates drastically change?

[afc wimbledon]

Originally Posted by rubecube

Wouldn't the most sensible solution be to tie it to a % of GDP and then adjust whenever interest rates drastically change?

that might work but it would be essentially a deficit hawk system, the time you need to open the coffers is when GDP drops massively, and the problem for all economists and political systems is what you need to worry about is perception, the moment the US dollar is percieved to be worthless it is worthless, the only thing that actually gives the dollar value is belief, interest rates are the same, if banks and other lenders sense the economy of the US is weak and they may not get their money back they will charge more to lend it, interest rates go up

[rubecube]

Originally Posted by afc wimbledon

that might work but it would be essentially a deficit hawk system, the time you need to open the coffers is when GDP drops massively, and the problem for all economists and political systems is what you need to worry about is perception, the moment the US dollar is percieved to be worthless it is worthless, the only thing that actually gives the dollar value is belief, interest rates are the same, if banks and other lenders sense the economy of the US is weak and they may not get their money back they will charge more to lend it, interest rates go up

Not really because you'd only start deficit-hawking if interest rates climb. A drop in GDP would mean more borrowing at hopefully lower interest rates. You're right that a drop in GDP that coincides with massive increase to interest rates would force cuts during a recession but that hasn't happened in the last few recessions.

[afc wimbledon]

Originally Posted by rubecube

Not really because you'd only start deficit-hawking if interest rates climb. A drop in GDP would mean more borrowing at hopefully lower interest rates. You're right that a drop in GDP that coincides with massive increase to interest rates would force cuts during a recession but that hasn't happened in the last few recessions.

I'm not sure most people realise how fast things go wrong when they go wrong, interest rates spike in a week or two when the currency craters, its not a slow process, its breathtakingly quick, there is no 'reaction' to it, you just wake up one day with no economy and most of your possesions are worthless, Governments are essentially powerless at that point

[GirlySports]

Originally Posted by afc wimbledon

I'm not sure most people realise how fast things go wrong when they go wrong, interest rates spike in a week or two when the currency craters, its not a slow process, its breathtakingly quick, there is no 'reaction' to it, you just wake up one day with no economy and most of your possesions are worthless, Governments are essentially powerless at that point

South America's history of rapid inflation cycles is an example.

[CliffFletcher]

Like a lot of things, our fear of inflation has gone away as it has receded from living memory of most people.

[troutman]

Originally Posted by GirlySports

South America's history of rapid inflation cycles is an example.

I saw the Sucre in Ecuador swing wildly between 1993 and 1994, and it got much worse from there. The peso in Argentina was artificially tied to the US Dollar, and no one could afford new cars there.

https://en.wikipedia.org/wiki/Histor...ntine_currency

https://en.wikipedia.org/wiki/Ecuadorian_sucre

Sucres per U.S. Dollar:

• 2.60 (1917)
• 16-17 (1959-1961)
• 25.00 (1979)
• 2,564.50 (1995)
• 3,189.50 (1996)
• 3,988.30 (1997)
• 5,446.60 (1998)
• 11,786.80 (1999)
• 24,860.70 (January 2000)
• 25,000.00 (at dollarization time)

[GGG]

Originally Posted by CliffFletcher

Like a lot of things, our fear of inflation has gone away as it has receded from living memory of most people.

Until we are not a petro state we don’t need to be too concerned with inflation. Our dollar is hedged by the price of oil.

[afc wimbledon]

Originally Posted by GGG

Until we are not a petro state we don’t need to be too concerned with inflation. Our dollar is hedged by the price of oil.

That seems to not be working for Venezuela, they are running at 17,000% p/a

[burn_this_city]

Originally Posted by afc wimbledon

That seems to not be working for Venezuela, they are running at 17,000% p/a

They have no hedge because their production has crashed to 500k-1mbpd. It only works if you actually have goods to sell in hard currency.

[bob-loblaw]

Not sure if it has been mentioned in this thread, but Yedlin is proposing a global minimum tax rate for corporations. I think it's actually a pretty good idea.

[afc wimbledon]

Originally Posted by bob-loblaw

Not sure if it has been mentioned in this thread, but Yedlin is proposing a global minimum tax rate for corporations. I think it's actually a pretty good idea.

its a great idea, but much like a salary cap in hockey its how you get the idiots that run countries to adhere to it thats the problem

[KootenayFlamesFan]

This guy seems to be incredibly impartial. Nothing to see here.

https://twitter.com/user/status/1388212363212382208

[direwolf]

How exactly is this audit in Arizona even legal? The election was certified back in December, Biden was officially sworn in, and multiple GOP court challenges all failed. It's been over for months. So why are they allowed to do this?

[Monahammer]

https://www.sacurrent.com/the-daily/...openly-corrupt

So, Genius Ted Cruz tweeted on Friday the proverbial "quiet part" of the thought process and publicly admitted to pay for access schemes in the US Senate with corporations. It's something everyone has known and talked about openly for ever, but outright stating it as a sitting senator is... well outright foolish. He probably would have survived this with Trump sitting, but with democrats in power they are definitely going to use the ethics office to violate his life now.

In a tweet yesterday morning, the former director of the US Office of Government Ethics (under Obama and Trump) says "this may be the most openly corrupt thing any Senator has said."

[Senator Clay Davis]

I would say how humiliating for a grown man to get outclassed by a sixth grader, but Kilmeade is rich as #### even if he's dumb as ####, so who really won?

https://twitter.com/user/status/1389906290588127236

[rubecube]

Originally Posted by Senator Clay Davis

I would say how humiliating for a grown man to get outclassed by a sixth grader, but Kilmeade is rich as #### even if he's dumb as ####, so who really won?

https://twitter.com/user/status/1389906290588127236

These same #######s would be apoplectic if the CNN/MSNBC used kids for something like this.

[Scroopy Noopers]

Originally Posted by Senator Clay Davis

I would say how humiliating for a grown man to get outclassed by a sixth grader, but Kilmeade is rich as #### even if he's dumb as ####, so who really won?

https://twitter.com/user/status/1389906290588127236

Did a 6th grader just deliberately troll this guy? Amazing. Looks like he’s fighting a smile when Brian starts talking.

[SportsJunky]

It definitely seems like intentional trolling. Good for that kid.

[MissTeeks]

Sure, why not.

https://twitter.com/user/status/1390014544890658819