Originally Posted by pricejj
I guess you think ZIRP can sustain the U.S. forever...along with 3% annual inflation?
Here's a couple facts:
1. Our money we make now will be worth a lot less when we retire.
2. There are no viable options for growth other than purchasing assets (which are now too expensive), or gambling it away on the stock market.
3. Hope you're stashing at least 15% of your take home pay under the mattress. If you're lucky, you'll be able to live off of it for a few years before you die.
How long do you think this can go on before collapse? If the answer isn't 'indefinitely' then you have a serious problem on your hands.
You clearly don't even get the argument at hand here.
What does interest rate matter when you can print more money to pay the interest? What does inflation rate matter when money is just a theoretical medium we conduct barter in?
The value of the dollar is irrelevant as long as the U.S. produces enough real resources (read: food, water, etc.) to provide for it's populous. Which we do and then some, as a net exporter of agriculture (one of the few things we are an exporter of). Should that start to become a problem we can simply outlaw the export of food resources much like we currently disallow the export of oil. This will drive the price of food low, but not so low as to make agriculture an unsustainable business (as it will remain profitable within the bubble of America only supply and demand, since their labor force would be Americans with salaries commensurate with said economic practices).
The U.S. is blessed with all the resources it needs and no obligation to another foreign body's value of our currency. There is no such thing as default or bankruptcy for the U.S. government. So why worry about a boogie man when we've got real things to deal with? Like national under employment resulting in an unproductive economy.