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Originally Posted by james0246
^It's probably 2 trillion over 10+ years...or at least that's how the politicians generally word their economic discussions ("we will save/lose X Trillion dollars if we follow Plan Y"; etc).
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Doesn't sound like it from the article though.
Quote:
Originally Posted by SaintessHeart
That 2T is to maintain their status as the world largest economy. The problem is that, the assets backing the USD are so lean and questionable that nobody dares to use it as transaction, so no amount of "quantitative easing" or "stimulus" is going to help - they have already broken the trust of investors.
In Macroeconomic terms, it is called liquidity trap. Though I don't know how something can be liquid when the pieces of paper issued it driven by the demand for more of it, and most of those who demand it seem to contribute less than what it is worth - resulting in its constant dilution of actual worth through the ages.
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Except people, companies, and countries are using the USD for transactions. Not as much as before, thanks to the rise of the Euro, but it has its own problems. It's not a liquidity trap until it actually stops investment, and it hasn't. Of course that not as much as before part gets very little coverage in US media.
Also that 2 trillion increase to the debt cap would be unnecessary if they'd just raise taxes. It's impossible to get a balanced budget without doing so, and US federal taxes are at the lowest level since the WWII.