American debt

[Radio Storm]

I briefly heard something about this on the news once and I've been wanting to ask about it for a while. Don't you dare call me any disparaging names, I'm not American, nor I pay any attention whatsoever to any of your current issues and problems and such (what a stupid waste of time).

Supposedly you folks have a "debt" of multi trillions of dollars, or something like that.

I'm confused as to how a country can be in debt. Who do you owe all that money to? How the heck did you manage to run up such a colossal amount of money, anyway? Or more importantly, how are you ever going to pay it off? How does it effect your oh so important economy down there?

[Ultros]

Yeah, because it's not like any other country besides the United States has debt.

Also, Keynesian economics.

[Radio Storm]

Originally Posted by Ultros

Yeah, because it's not like any other country besides the United States has debt.

Also, Keynesian economics.

I didn't try to imply that you twit, I'm just not a person who pays much attention to politics. You didn't even bother to answer any of my questions, either.

[Joker]

The government issue bonds which private companies/people and foreign nations buy such as China.

[iwpoe]

Originally Posted by J-Rod

Supposedly you folks have a "debt" of multi trillions of dollars, or something like that.

I'm confused as to how a country can be in debt. Who do you owe all that money to? How the heck did you manage to run up such a colossal amount of money, anyway? Or more importantly, how are you ever going to pay it off? How does it effect your oh so important economy down there?

We can have debt into the "multi trillions of dollars" because our economy produces assets whose value is into the "multi trillions of dollars". A large economy means one can have a large debt, in the same way that individuals with large incomes can afford to take out larger loans than people with smaller incomes and still remain solvent.

Now, I'm not sure if this is right, but I believe some of our debt is owed to foreign nations, and some of our debt is owed to ourselves (so to speak). I need an economics person to clarify the latter part of the statement for me, but I believe it to be accurate.

[iwpoe]

Originally Posted by Ultros

Yeah, because it's not like any other country besides the United States has debt.

Also, Keynesian economics.

Don't post in this manner again or I will infract you.

[Illuminatus]

Originally Posted by iwpoe

We can have debt into the "multi trillions of dollars" because our economy produces assets whose value is into the "multi trillions of dollars". A large economy means one can have a large debt, in the same way that individuals with large incomes can afford to take out larger loans than people with smaller incomes and still remain solvent.

Now, I'm not sure if this is right, but I believe some of our debt is owed to foreign nations, and some of our debt is owed to ourselves (so to speak). I need an economics person to clarify the latter part of the statement for me, but I believe it to be accurate.

I know you're right about the foreign country part. Much of our debt is owed to China. However, I am unsure about owing money to ourselves. I'd be interested to hear what someone who has a good understanding of economics has to say because I've always wondered who exactly the debt is to.

[Joker]

They are called Government bonds I think. You issued aload of them to the public during the world wars. The debt is to the person/citizen who buys the bond, its kind of like buying shares in the Government, they either give you an interest or what my Government does is do 'prize draws' where you can win various amounts every month.

[Ultros]

Originally Posted by J-Rod

I didn't try to imply that you twit, I'm just not a person who pays much attention to politics. You didn't even bother to answer any of my questions, either.

Yes I did. Look up Keynesian economics.

I appreciated the insult though.

[ourmodernred]

Originally Posted by Joker

The government issue bonds which private companies/people and foreign nations buy such as China.

Japan actually owns a considerable amount as well

[rebellious_teen]

Originally Posted by Ultros

Yes I did. Look up Keynesian economics.

How would Keynesian economics answer the questions?

[iwpoe]

Originally Posted by rebellious_teen

How would Keynesian economics answer the questions?

I suspect that Ultros construed the thread as a polemic against government spending to which the reply "Keynesian economics" would be relevant (though vapid). Of course, since the OP was (1) not an American and (2) not actually making a claim against government spending and seemingly merely curious, the reply was inappropriate entirely.

[Joker]

Originally Posted by ourmodernred

Japan actually owns a considerable amount as well

I kinda assumed that Japan was with the majority of the West in debt to china

[CaptainObvious]

The United States government's debt takes the form of government and sovereign bonds, differing only in that the former are held by domestic entities - including individual citizens - while the latter are held by foreign entities, often including foreign governments.

[Ultros]

Originally Posted by iwpoe

I suspect that Ultros construed the thread as a polemic against government spending to which the reply "Keynesian economics" would be relevant (though vapid). Of course, since the OP was (1) not an American and (2) not actually making a claim against government spending and seemingly merely curious, the reply was inappropriate entirely.

If you read his original post you would know why I posted the way I did. His initial post was significantly more disparaging and condescending, so I replied in a similar fashion. If you look at the post dates, he edited his post after he saw my reply. I also made that post a minute before class ended so it's not like I had time to craft an intricate reply.