• This is a political forum that is non-biased/non-partisan and treats every person's position on topics equally. This debate forum is not aligned to any political party. In today's politics, many ideas are split between and even within all the political parties. Often we find ourselves agreeing on one platform but some topics break our mold. We are here to discuss them in a civil political debate. If this is your first visit to our political forums, be sure to check out the RULES. Registering for debate politics is necessary before posting. Register today to participate - it's free!

Should the USA default?

Should the USA default?

  • Yes

    Votes: 4 13.8%
  • No

    Votes: 21 72.4%
  • It's not possible anyways

    Votes: 3 10.3%
  • I don't know

    Votes: 1 3.4%
  • Other

    Votes: 0 0.0%

  • Total voters
    29
I'm just explaining that having a weak currency isn't always a bad thing. A default may affect the economy in other ways, but a devalued dollar is not a big deal.

It is ALWAYS a bad thing. You've just pointed one aspect that isn't all bad. It's still a net negative. Name ONE country with a really weak currency that is prosperous and a pleasant place to live. Just one.

If your sentiment were true, all of the countries who were victims of hyperinflation would be living the good life right now.
 
I'll say that having a weakened currency isn't always a bad thing, but 99% of the time, it is. The only way having a weakened currency isn't always a bad thing is if all other significant currencies are weakened to a similar or worse level. And the only thing that would make that happen would be a global economic catastrophe.
 
I'll say that having a weakened currency isn't always a bad thing, but 99% of the time, it is. The only way having a weakened currency isn't always a bad thing is if all other significant currencies are weakened to a similar or worse level. And the only thing that would make that happen would be a global economic catastrophe.

So you essentially just said "It's not always a bad thing. It could be good during a global economic catastrophe!"

That means it's bad 100% of the time, because even your exception is a REALLY ****ty situation.
 
It is ALWAYS a bad thing. You've just pointed one aspect that isn't all bad. It's still a net negative. Name ONE country with a really weak currency that is prosperous and a pleasant place to live. Just one.

If your sentiment were true, all of the countries who were victims of hyperinflation would be living the good life right now.


Brazil has a weak currency compared to the U.S and U.K, but they're one of the fastest growing emerging economies in the world.



Although many would perceive a weakening currency to be a negative issue, from a positive perspective the declining value of the Brazilian Real means that Brazilian products are much better value for money, which has encouraged phenomenal growth across the Brazilian industry sector.

Article Source: Weak Brazilian Currency Presents an Opportunity to Invest in Brazilian Real Estate Market
 
Weaker currency can, under very precise circumstances, help an export-dependent nation. Which is why China has been intentionally devaluing the yuan for years.
 
So you essentially just said "It's not always a bad thing. It could be good during a global economic catastrophe!"

That means it's bad 100% of the time, because even your exception is a REALLY ****ty situation.

For a nation like the U.S., I should have clarified. I'm certainly not rooting for it. See above.
 
Brazil has a weak currency compared to the U.S and U.K, but they're one of the fastest growing emerging economies in the world.

Let's take a look at Brazil then, shall we?

brazil.jpg

We see here a chart of the exchange rate over the past 10 years. Over the past 3 years their currency has jumped off a cliff, and they're having a LOT of problems for it. Most of the growth you're talking about happened prior to that.

Brazil's troubled economy: Stumbling up the hill | The Economist
AFTER a decade of encouraging growth, Brazil's economy has stalled. Without substantial changes to public spending and business relations, the country may lose its momentum
Brazil's economy: A shocking figure | The Economist
AFTER seven straight quarters of low or no growth, Brazil can no longer afford to be complacent about the need for big structural reforms, say our correspondents

I find it quite strange that you, a socialist, of all people, are really advocating for inflation. Take countries like Mexico and China who have had major inflation. The middle class doesn't exist there. There's rich and poor, with very few in between. Inflation helps the rich and destroys the middle class. Rich people know how to hedge against inflation. Hard assets appreciate. So instead of holding the inflating currency, they either move it to another currency or buy hard assets like real estate, which because of inflation massively go up in value. Inflation is the most sinister opponent to true economic equality.

Secondly I find it strange that you point to a country like Brazil who's source of growth over the past 10 years can be massively attributed to exports. You're against globalization remember? You're highly opposed to the golden goose they're using.

Lastly, would most Americans consider the Brazilian standard of living very pleasant? Sure, there are some rich people there, but the middle class is weak and most people are very poor. So I still challenge you to find me a really nice place to live that has a really weak currency.

And to cap it off, I'll give you a link to read up on about Brazil's hyperinflation battle through the 80's and 90's:
http://www.bbc.co.uk/news/business-11477974
 
Last edited:
No, you back your fiat money (or your hard money) with TRUST. Trust that the nation in question will continue to service its debt, trust that the commodities markets won't take a colossal deuce on what proponents of hard money think is actual currency.

Gold and silver are just shinies. There are FAR more valuable commodities in the world than those shiny metals.

You say it is backed by TRUST and an excellent example is "full faith and trust," and sounds like words from a Pope. I'd substitute the word CONFIDENCE for TRUST and refer to the scenario as a "CONFIDENCE GAME." That seems to be a more surgically precise an answer to me.
 
Are you even American...?

No. :mrgreen:
Now, if the US government can afford to be 17 trillion in debt, it could probably afford to pay it off instead of increasing it to infinity. Right? :)
 
Explain to me why we have to pay off that debt now.

Well, perhaps not right away. May be bit by bit. But I don't see that happening. I see constant raising of the debt ceiling. :roll:
Now please explain to me how is it possible that the US government is indebted to itself (if we presume the FED is part and controlled by the government)?
 
No. :mrgreen:
Now, if the US government can afford to be 17 trillion in debt, it could probably afford to pay it off instead of increasing it to infinity. Right? :)

No, that's NOT how it's done correctly.
 
Back
Top Bottom