Moody’s misses the point. 1) A federal deficit *IS* by definition a non-govt surplus—more $ in private & foreign sectors. 2) Interest pmts also flow to bondholders (pensions, banks etc), boosting incomes.
How’s injecting demand into economy a DOWNGRADE risk? This is basic sectoral balances
#EconSky
How’s injecting demand into economy a DOWNGRADE risk? This is basic sectoral balances
#EconSky
Comments
Taxing those that got rich off of America's teat used to be a thing...
And they aren't spending it. So yeah, no demand.
When government runs a $1T deficit, that $1T *must* show up as surplus somewhere else—in private savings or foreign holdings. This isn’t theory, it’s how money flows work. The graphic simplifies this proven accounting reality.
If you can stay on topic and argue in good faith I am here. If not a block is coming.
https://en.wikipedia.org/wiki/Sectoral_balances
Sectoral analysis is based on the insight that when the government sector has a budget deficit, the non-government sectors (private domestic sector and foreign sector) together must have a surplus, and vice versa.
You sound like the guy in Major League who says it can't be a homerun because it was hit too high.
https://bsky.app/profile/netbacker.bsky.social/post/3lpdblkxnls2j
The difference here is that it's pretty obvious the US isn't a secure lender right now, I mean even just economics aside. We don't have a stable government guaranteed to fulfill the functions of democracy.
Bad printing = giving it to billionaires (2008 bailouts).
Good printing = paying nurses, building bridges, and educating kids.
Every 💵 that exists today was a 💵 “printed” to purchase real goods.
The Q isn’t *if* we print money – it’s *who benefits* when we do.
Mercurial & chaotic trade proclamations have affected commerce across the board.
* Musk et al taking control of government agency work (FAA, government payments, etc.)
* Musk grabbing government contracts without competitive bidding
=> increases federal deficit (per posted graphic)
He could auction attention to top 225 investors in cancer research, cybersecurity, or something benefiting America First.
Debt ceiling fights were tied to shutdowns. Again, NC.
My SubStack focus is #Sustainability includes what #economists #CASSE call #overshoot where #global/US #economy consume nonrenewable #resources unsustainably
https://open.substack.com/pub/thewhyexplained/p/why-is-understanding-what-sustainability?r=1zyu0j&utm_medium=ios
Need new #economic paradigm beyond limitless spending
Or if 75% of our population is not invested in that surplus you imagine, that’s not good.
Or if foreign actors own the debt, that’s not good.
You need to rethink your hypothesis.
Possibly AI can net improve productivity but not a given by any means.
https://bsky.app/profile/haleksandar.bsky.social/post/3lpetwtii4c2i
But it's not.
You're asking a bond holder to accept this without a higher coupon?
"Dollars are always in demand."
#FamousLastWords
Bondholders risk includes inflation, and that factors in as said below.
Is @netbacker.bsky.social here basically going on a rant that "the world must eat US debt"?
Yeah, I'd say so.
https://bsky.app/profile/trifan.bsky.social/post/3lpdda3xgj22p
https://www.wolterskluwer.com/en/expert-insights/whole-ball-of-tax-historical-income-tax-rates
Let’s ignore the elephant in the room that the wealthy & corps aren’t paying their fair share and haven’t since 1981..
https://taxfoundation.org/data/all/federal/historical-income-tax-rates-brackets/
Tax the rich fairly & proportionally to the working classes. That’d fix it.
I can’t watch it anymore without you on it , maybe if Mr WonderFool goes .. to slimy
Keep running from ticks Mark❤️🩹
But of course the Federal Govt. also invests in infrastructure in order to grow our economy in future. Big country, small popn.
Eventually debt becomes unsustainable. Even if it stimulates in the short term.
https://bsky.app/profile/netbacker.bsky.social/post/3lpdblkxnls2j