• We’re currently investigating an issue related to the forum theme and styling that is impacting page layout and visual formatting. The problem has been identified, and we are actively working on a resolution. There is no impact to user data or functionality, this is strictly a front-end display issue. We’ll post an update once the fix has been deployed. Thanks for your patience while we get this sorted.

What assets can the US sell to cover its 10T deficit?

gevorg

gevorg

Diamond Member
Even if there is a recession, US is still the richest country in the world. The economy is still the strongest comparing to any other. Is there anything US can sell to the world (primary to China - its biggest debtor) that will cover its 10 trillion dollar deficit? Isn't that better than a high inflation rate and a reduction/loss of being an economic superpower?

Think about it.
 
Its not the deficit itself thats the problem. So dont go hitting the panic button by trying to sell off some national assets.

It's the rate at which the debt grows (especially vs the GDP) thats worrisome.

The US could just balance its budget, and leave the debt alone (not adding to it) and 10 years down the road 10 Trillion is a lot less scary than it is now.
 
$10 trillion debt, not deficit.

We don't need to sell anything, we just need to stop spending so much.
 
Originally posted by: Ocguy31
San Francisco. Although I dont think anyone wants it.....
Click to expand...

I know San Francisco is valuable, I just didn't realize it was worth $10 Trillion.
Obviously, selling Southern California is not an option, too many stupid people there.
 
Originally posted by: gevorg
Even if there is a recession, US is still the richest country in the world. The economy is still the strongest comparing to any other. Is there anything US can sell to the world (primary to China - its biggest debtor) that will cover its 10 trillion dollar deficit? Isn't that better than a high inflation rate and a reduction/loss of being an economic superpower?

Think about it.
Click to expand...

What dollar value would you put on the US Government real estate holdings?

What's the present value of tax revenues generated for the next 100 years?

It is up to China to cash in dollars for US goods, that's what trade is. If they are cheap asses and just hoarding money, they can only blame themselves.
 
We began 2008 with ~$9 trillion in debt. See my signature below for why your $10 trillion number needs a correction. As for what we could sell, what is the value of our GDP, $15 trillion? If only we could sell that.
 
Tough call. I'll go with Alaska as the only good thing to come from there is Oil and it likely is mostly shipped to Asia anyway, so no big loss for you, but a big gain for China. 😛:laugh:

Only a couple $trillion is owed to China(IIRC). So I'd just pay the Interest on it and restructure Spending/Taxation to deal with the Principle. Giving up anything, especially territory is just a bad idea.
 
Originally posted by: ranmaniac
We have plenty of mothballed military hardware to sell. Just need to kick-start another war.
Click to expand...

We sell a lot of it. This has been standard practice for a long time.

Old Ships, Subs and Planes get sold to developing countries. Its not rare to see small countries navy's using the old river boats/destroyers we used in Vietnam.
And the troops weilding old M-16-A1's
 
Originally posted by: Train
Its not the deficit itself thats the problem. So dont go hitting the panic button by trying to sell off some national assets.

It's the rate at which the debt grows (especially vs the GDP) thats worrisome.

The US could just balance its budget, and leave the debt alone (not adding to it) and 10 years down the road 10 Trillion is a lot less scary than it is now.
Click to expand...

I agree that the long-term solution is adjusting the spending rate and proper budgeting. But how do we get rid of those 10T or reduce it to lower levels? That debt affects our whole financial system, including gov't, making foreign investors demand more interest or even reduce investment in the US (China already reduced their investment in US). With the way things are going now, I don't see how the 10T debt will go down, only up.

Originally posted by: JS80
Originally posted by: gevorg
Even if there is a recession, US is still the richest country in the world. The economy is still the strongest comparing to any other. Is there anything US can sell to the world (primary to China - its biggest debtor) that will cover its 10 trillion dollar deficit? Isn't that better than a high inflation rate and a reduction/loss of being an economic superpower?

Think about it.
Click to expand...

What dollar value would you put on the US Government real estate holdings?

What's the present value of tax revenues generated for the next 100 years?

It is up to China to cash in dollars for US goods, that's what trade is. If they are cheap asses and just hoarding money, they can only blame themselves.
Click to expand...

I don't know how to value US gov't real estate holdings.

I wouldn't call China "cheap asses" since as investors its quite reasonable for them to cash out from failing investments. Our investment banks do exactly the same to China whenever there is something they don't like.

Originally posted by: sandorski
Tough call. I'll go with Alaska as the only good thing to come from there is Oil and it likely is mostly shipped to Asia anyway, so no big loss for you, but a big gain for China. 😛:laugh:

Only a couple $trillion is owed to China(IIRC). So I'd just pay the Interest on it and restructure Spending/Taxation to deal with the Principle. Giving up anything, especially territory is just a bad idea.
Click to expand...

A WHOLE state or an existing city is a joke. 🙂 Just the natural resources of Alaska can easily value over 500T.

Maybe an unpopulated territory for a medium city somewhere on the West coast for economic and non-military use only? Even this sounds ridiculous, but how else can we cover the debt?
 
Originally posted by: gevorg

I wouldn't call China "cheap asses" since as investors its quite reasonable for them to cash out from failing investments. Our investment banks do exactly the same to China whenever there is something they don't like.
Click to expand...

Chinese culture is to be as cheap as possible and hoard gold coins in their safe. See, normally this is how trade works - I make X widget you make Y widget and we trade. Sometimes we can't time our production precisely so we issue IOUs. China is just collecting IOUs forever without ever cashing it in. So in the end you just die with a bunch of devalued paper.

If China wants to be economically successful, they need to balance the trade.
 
Originally posted by: JS80
Originally posted by: gevorg

I wouldn't call China "cheap asses" since as investors its quite reasonable for them to cash out from failing investments. Our investment banks do exactly the same to China whenever there is something they don't like.
Click to expand...

Chinese culture is to be as cheap as possible and hoard gold coins in their safe. See, normally this is how trade works - I make X widget you make Y widget and we trade. Sometimes we can't time our production precisely so we issue IOUs. China is just collecting IOUs forever without ever cashing it in. So in the end you just die with a bunch of devalued paper.

If China wants to be economically successful, they need to balance the trade.
Click to expand...

You're more likely to be successful by collecting IOUs then spreading them around so much that you can't to pay them back anymore.
 
Update!

http://www.reuters.com/article.../idUSN1337694320090113

" "U.S. exporters now have a more streamlined way to export to companies in China who have a record of using U.S. technology responsibly," Mancuso said.

The agreement is good news for U.S. aircraft manufacturer Boeing Co. (BA.N) and Applied Materials Inc. (AMAT.O), the world's biggest supplier of machines used to make semiconductors.

The two companies have partners in China cleared to import certain advanced technology goods that also have potential military uses."
 
Originally posted by: gevorg
Even if there is a recession, US is still the richest country in the world. The economy is still the strongest comparing to any other. Is there anything US can sell to the world (primary to China - its biggest debtor) that will cover its 10 trillion dollar deficit? Isn't that better than a high inflation rate and a reduction/loss of being an economic superpower?

Think about it.
Click to expand...

The US has a lot of assets.

Lots of military hardware that could be sold. Also the US government owns lots of land that potentially could be sold off. Not even getting into hard assets like gold that the US owns.

At the end of the day the US T-Bill is still a very safe investment and we can still borrow at every low rates. When you can borrow money at such a low rate then there isn't much reason to start selling off assets.
 
Originally posted by: Jaskalas
We began 2008 with ~$9 trillion in debt. See my signature below for why your $10 trillion number needs a correction. As for what we could sell, what is the value of our GDP, $15 trillion? If only we could sell that.
Click to expand...

You should read the article that is linked in your signature to see why your sig needs to be corrected.
 
Originally posted by: gevorg
Even if there is a recession, US is still the richest country in the world. The economy is still the strongest comparing to any other. Is there anything US can sell to the world (primary to China - its biggest debtor) that will cover its 10 trillion dollar deficit? Isn't that better than a high inflation rate and a reduction/loss of being an economic superpower?

Think about it.
Click to expand...

NASA?
 
Originally posted by: gevorg
US is still the richest country in the world.

Think about it.
Click to expand...


Our ultimate power today is that we can create money out of thin air. We could, if we chose to, be out of debt, in the amount of time it takes to print the money.

 
Originally posted by: gevorg
Even if there is a recession, US is still the richest country in the world. The economy is still the strongest comparing to any other. Is there anything US can sell to the world (primary to China - its biggest debtor) that will cover its 10 trillion dollar deficit? Isn't that better than a high inflation rate and a reduction/loss of being an economic superpower?

Think about it.
Click to expand...

Texas, with inhabitants thrown in for free! (after 1/21/09)

😀


 
Originally posted by: Ozoned
Originally posted by: gevorg
US is still the richest country in the world.

Think about it.
Click to expand...


Our ultimate power today is that we can create money out of thin air. We could, if we chose to, be out of debt, in the amount of time it takes to print the money.
Click to expand...


And in part by creating one fake bubble after another over the past decade.


 
You must log in or register to reply here.

TRENDING THREADS

Back
Top