So...let's pretend that this time the sky really is falling.Hoagtech wrote:This government is trending a lot higher than recent presidents you speak of.
I’d like to know the what happens if overspending were to occur.
Let’s double down on hypothetical and pretend the administration spent 100 trillion of debt for “reform” and could not afford the debt in the future.
At what point would that effect our economy and what would the detriment be? I would like to educate myself on the cause and effect of overspending in general..
The guy who was in the senate for 40 years then VP for 8. The guy who got the Democratic nomination not because he led the primaries, but because he was the safe, middle of the road center-right candidate the establishment wanted, and rigged their game to put him in place? The guy who went through an arduous process to get bipartisan support for this bill & got 19 Republican senators on board, even though he needed zero?
That's the guy who's suddenly going to wild out and jack up the $26.7 trillion national debt to $100 trillion like he's political Michael Vick? With absolutely nobody in the corporate-Democrat establishment putting the brakes on him?
Okay, I am absolutely 100% on board. As you can probably tell, I love weird stuff. Let's do this thing.
Let's say Biden has always been secretly envious of the shiny suit era of hip hop. He's going all out on Gucci stealth bombers. Miami DC, wrapped in Ver-sa-ce. Replaces fluoride in the water with Cristal. Appoints Master P head of the Treasury Dept. on the basis of his past business acumen and refined taste in gold-plated assault tanks. The White House and capitol are relocated to Neverland Ranch.
Pictured: 2023 US Dept. of Agriculture soybean & oilseed roundtable forum
Sure, some fuddy-duddies object. But this is the Instagram era baby, and P Biddy is putting on the flex to end all flexes. The people are loving it. But somewhere along the line, after a decade or two the bills start piling up. After all, Cristal costs $200 and up just at the liquor store, but Joe made the baller move of paying nightclub bottle service prices. Payments get skipped. America has to pretend it's not home when the World Bank comes banging on the door. They have to park the car at Paraguay's house to keep it from getting repo'd. President Lohan is losing her shit.
The country enters sovereign default. It's now a major credit risk, loan rates go up 40%. Neighbouring countries step in to help for fear of becoming the next domino, but not even Canada's pillowcase full of loonies can fix this problem.
The value of the dollar sinks as currency traders bail. Purchasing power goes down, some commodities get more expensive. Prices go up on imports like electronics. The agriculture industry contracts. Super markets get downgraded to just pretty okay markets. Economic depression results as banks are forced to make write-downs all over the place. Everybody makes mean jokes about you on the internet.
But ultimately, that old saying comes into play: if you owe the bank $10 000, that's your problem. If you owe it $100 trillion because you had Gucci redesign your entire airforce, that's the bank's problem. That kind of liability is a tough sell to offload to a 3rd party. And ultimately America's a sovereign entity. Nobody can actually compel it to pay back anything, unless China really wants to send its goons round to collect kneecaps.
So, debts get restructured. A conservatorship is offered. The world's largest ball of paint in Alexandria, Indiana is auctioned off to service debts. The US becomes a foster kid for the IMF, who keep a photo of it stuck to the fridge with U-S-A letter magnets. Music gets really depressing. But it's not all bad, because now manufacturing jobs can finally come back with labour costs reduced.
And you'll still always have those 8 magical years where Silkk tha Shocker rewrote the national anthem and Biggie was added to Mount Rushmore.