Nice job, you just passed high school economics

>>1370449

so the gov't will technically never be "out of debt". The debt will continue to grow... it's now 18 trillion but in 50 years it will be 180 trillion?

Where does it end? never? just borrow forever? This is what I genuinely don't understand

yep it's all a racket. IRL Hydra wins.

>>1370472

how is it possible to pay interest on 180 trillion? our rates are already close to zero and our govt is having trouble with 18 trillion... I DON'T UNDERSTAND I was hoping there would be someone knowledgable in finance on /biz/ that could explain how the government can even hope to pay the interest on 50 trillion or 100 trillion dollars ?

How? where are we in 10 years? 30 trillion 50 trillion in debt? How?

Where are we in 5 years? how does this end, or how does it mathematically keep going?

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>>1370444
>.1 quadrillion come from?
labor and services, if you pay a guy to mow your lawn, what product did he create? nothing, you just paid someone for "nothing"
if i buy a big chunk of wood for $5 and make sculpture out of it, and sell that sculpture for $15 then I just "created" $10
(but not really, the work hours i put into that piece of wood is where the $10 comes from, time=money afterall)

your concept of money is wrong, an item is not worth a set amount of money, despite what price tags tell you, an item is worth whatever someone is willing to pay for it

currencies are not a fixed value, $1 today will buy me a different amount of goods/services today, yesterday, and tomorrow

when you buy a $2 screwdriver it does not mean that that hunk of metal/plastic is worth $2, that means that the ability to screw in a screw is worth $2(if it wasnt, you wouldnt have bought it it)

>>1370452
>so the gov't will technically never be "out of debt". The debt will continue to grow... it's now 18 trillion but in 50 years it will be 180 trillion?
hopefully, if the government ever got out of debt then that means that the government's citizen(s) are in debt instead

>>1370518

this is retard level economics

>>1370503

Rumor is the Dollar is purposely being crashed so a new one world currency can be put in its place.

>>1370444
Read modern money mechanics by the fed they explain exactly how they make money

>>1370503
It's not going to be payed back, every government in human history has defaulted on its debt

Any established government defaults on its debts. Those that are revolutionary and have no credit – hyperinflate. Either way, there is NO government that has EVER survived. Government and bankers have been entwined since the dawn of civilization. (See the Great Athenian Financial Crisis of 354BC). Corruption even in Rome during the elections sent interest rates up dramatically to afford to pay bribes. (See Financial Panic of 53BC).

>>1370444
Interest is money that will be paid to someone in the future.

year 1
bank loans 1 quadrillion to economy
bank: $0
economy: $1000000000000000

year 2
bank calls in .1 quadrillion interest and bankers get .1 quadrillion in bonuses
bank: $100000000000000
economy: $900000000000000

year 2
bankers have spent their .1 quadrillion in bonuses in the economy but get another .1 quadrillion in interest
bank: $100000000000000
economy: $900000000000000

and so on

>>1370627
oops that last one was meant to be year 3

>>1370527
Modern Money Mechanics is exactly where this information was discovered.

Before The Federal Reserve published the book "Modern Money Mechanics", how money was made was a mystery to the general public.

Thanks to the book, it is easily understandable, and would be insane and preposterous to refute, that the national debt can never be paid, because the money that's created to pay the debt doesn't even exist to begin with.

>It says it in the book