Is the US on the verge of an economic collapse?

[Deleted]

So... I had to investigate what a trillion is for Americans, because I felt it was a «small» value. I have found that there are different value scales.

1 trillion for Americans is: 1,000,000,000,000,000,000,000 or 1,000,000^3?
For me, the above value would be called a sextillion, or 1,000×1,000^6.

For me, a trillion would be «only» 1,000,000,000,000.

Regardless of which way you prefer to call it, that's a lot of money!! o.O

[Underbottom]

So... I had to investigate what a trillion is for Americans, because I felt it was a «small» value. I have found that there are different value scales.

1 trillion for Americans is: 1,000,000,000,000,000,000,000 or 1,000,000^3?
For me, the above value would be called a sextillion, or 1,000×1,000^6.

Regardless of which way you prefer to call it, that's a lot of money!! o.O

No we call 1,000,000,000,000 a trillion.

[Daelak]

No the US is not on the verge of collapsing. How would the largest economy collapse? There are intransigent republicans that are willing to sacrifice the future of America for short-term political gain and they bring a bunch of end-time libertarians and minarchists out of the woodwork, like they always have since the 40's.

No, we have a long-term debt problem that CAN and ONLY be fixed when we are out of the global recession and after passage of increased taxation.

[Themius]

No the US is not on the verge of collapsing. How would the largest economy collapse? There are intransigent republicans that are willing to sacrifice the future of America for short-term political gain and they bring a bunch of end-time libertarians and minarchists out of the woodwork, like they always have since the 40's.

No, we have a long-term debt problem that CAN and ONLY be fixed when we are out of the global recession and after passage of increased taxation.

Well we're not too big to fail though

[semaphore]

wow... and I thought it was worse when thinking it's only "a few hundread" billions. But now... wow, just wow, I don't even know how someone can make such a debt.

To be honest it's not that bad when you look at it as a percentage of GDP.

[Themius]

To be honest it's not that bad when you look at it as a percentage of GDP.

We're about 105% or something now, perhaps 104% and climbing. If this continues we could reach 120% in just a few years which is quite worrying if we don't do anything about it.

[Puremallace]

Basically fiscal cliff caused by utter idiots in congress and Euro zone crisis have US corporations sitting on like trillion dollars in profits. Companies who did not outsource business to China who's economy is slowing and Euro and stayed American are posting record profits.

[semaphore]

We're about 105% or something now, perhaps 104% and climbing. If this continues we could reach 120% in just a few years which is quite worrying if we don't do anything about it.

True, but it isn't the sort of catastrohpic pre-meltdown levels that people tend to think when they see the sheer magnitude of the number. I mean Japan's still chugging alone just (kinda) fine. Not to say that serious political change isn't necessary, though. And the sooner the eaiser/less painful it will be on everyone, but yeah.

[Daelak]

We're about 105% or something now, perhaps 104% and climbing. If this continues we could reach 120% in just a few years which is quite worrying if we don't do anything about it.

Again, another subjective percentage. Show me proof on how the largest economy in the world will collapse when we hit 120%?

[semaphore]

Again, another subjective percentage. Show me proof on how the largest economy in the world will collapse when we hit 120%?

Themius is saying it would be worrying (which it is and will be), not that the US economy will collapse.

[Daelak]

Themius is saying it would be worrying (which it is and will be), not that the US economy will collapse.

What is so worrying about it? Our economy as it stands right now is not at its full capacity and neither is our revenue.

[Horrid Crow]

No, it's not. But it should be, with a dept like that...

[Reeve]

I don't think the US economy is looking at total collapse anytime soon. The level of debt is concerning, but we've been at higher debt levels before (as a percentage of GDP) and shortly thereafter was the longest period of sustained growth in US history.



We're in a tough spot right now, so it's easy to doomsay, but I don't think the end times are upon us just yet.

[semaphore]

What is so worrying about it?

Paying it off. There are long term structural debt problems from various obligations that will exacerbate the sitution if it is not dealth with sooner rather than later.

[KDSwain]

No.

Things are actually turning around. As hard as it is to believe, unemployment is going down and the economy is growing.

But it is still hard to get a job at the moment in a lot of places.

What country are you talking about?

[Reeve]

Paying it off.

It's not a good idea to pay it off completely. Paying it down a bit would be nice, but eliminating or even mostly eliminating the US debt would be calamitous for the world economy. US Treasury bills are THE source for stability in international financial markets.

[Daelak]

Paying it off. There are long term structural debt problems from various obligations that will exacerbate the sitution if it is not dealth with sooner rather than later.

Yea we should pay the debt down, but not during a time of slow growth and a global turndown. We should do it when our revenues are at capacity with our economy, which is also under-utilized.

[Deleted]

Recession isn't exactly collapse.

[Cthulhu 2020]

No we call 1,000,000,000,000 a trillion.

I think he means in terms of his currency in Lisbon. When talking about other countries, currency exchange rates can often make money amounts seem greater or less than they actually are.

[N-7]

If the US didn't spend gazillions of dollars in the army and wars, you wouldn't have much debt but I guess the war against terrorism, drugs, crime is necessary to spread democracy and freedom around the world