If you had 34 trillion in debt and a centuries-long history of making on-time payments, you’d have a perfect credit score.
“Bankers hate him! Get an 850 credit score and dictate the terms and interest rate of your own debt using this one simple trick.”
Credit rating also depends on credit to debt ratio. You want to keep it below 35%, so you would need a credit line of $100T or more to have a great rating.
I think sovereign debt would work like an AmEx Platimum with “no fixed limit”, which makes the algorithm ignore utilization.
The US govt basically has a perfect credit score. They have almost infinite payment history and almost infinite available credit.
Are you immortal? Do you have an income vastly higher than the servicing cost of that debt? Do you owe the large a majority of that debt to yourself? Are you able to, if push came to shove, tell your external creditors to go fuck themselves and dare them to so much as try to collect on the debt you don’t feel like paying? If you can’t answer “yes” to all these questions, you aren’t the US and have a debt situation that has absolutely nothing in common with the US debt.
Do not forget that you are also the very entity that hands out the currency you hold your debt in.
It’s like Dwight printing IOUs for Schrutebucks
US debt is currently higher than their GDP. Even if they could leverage the entire country into only paying debt (they can’t), it would take over a year to pay off. At the current average interest rate of ~3%, that’s enough to pay for the entirety of NASA’s budget five times over.
The last time US debt was greater than their GDP was the second world war.
The government is 100k in debt on my behalf
-1000 social credit for questioning government
Micro-economics vs. macro-economics
I strongly encourage people who still think like OP to look up what happened the last time we paid off the national debt.
…link?
Andrew Jackson sold off enough Native American land to cause a real estate bubble, and between that and other things started a bank run, and the kind of people that think they’ll win the shell game pretend it’s because non-productive debt is good, and the problem was elimination of debt, not how it was done and other circumstances (among them being on a gold standard so you can actually do a bank run)
https://www.history.com/this-day-in-history/andrew-jackson-national-debt-reaches-zero-dollars
Credit scores are just some fake shit that boomers made up. It’s so dumb.
…except that it used to be that your ability to secure a loan was based on where you went to school, how firm your handshake was, and if you happened to have the right skin color and sex organs.
The current system certainly isn’t perfect; and if you’re denied a loan you have a legal right (in the US) to know the reason.
There are systemic issues, to be sure. But the nominal goal is absolutely better than what we used to have.
My mom should have amazing credit, but she doesn’t. She does literally everything right.
Meanwhile I have really good credit and have no idea why.
It’s just made up shit and we should find a better system.
I’d definitely recommend getting a credit report (not from the websites that advertise with an insane jingle, but from the actual credit bureaus — you’re entitled to a free report). Mine had debt from a relative with a similar name; I was able to get that removed. They will also tell you in more detail what goes in to calculating it.
I agree that it’s not perfect, and often very opaque, but you should be able to get some understanding of why she doesn’t have good credit.
We can’t ignore that there are other ways of doing it besides credit scores or overt racism. Some countries have no credit scores at all and just base loan eligibility on your salary and employment history.
have you considered printing your own money?
Yes I have but then I relized hey that’s illegal
Printing imitation US dollars is illegal. Printing Varven Bux is legal! They may not be accepted everywhere, though.
Imitation is illegal… Smh why does nobody just print real money? Am I the only one seeing this loophole?!
Money = reputation
So I have a money for putting out easily? That tracks, actually.
The US has a fantastic credit score. Being the world’s reserve currency helps.
if it makes you feel any better you’d go to prison if you decided to run a ponzi scheme… unless you’re a bank, that is
Wait a bank is a Ponzi scheme
Not literally. I bet the poster notices the overlap between ponzi and fractional reserve lending and doesn’t care about the differences
Which is?
Lota of differences but the key is: A ponzi scheme pays returns out of future investment. Fractional reserve lending pays returns from interest collected on investments.
Bank is legal because… reasons…
Countries can print money. If the debt is denominated in your own currency you will never not be able to pay them.
This.
More people need to understand that the debt of a sovereign nation isn’t analogous to that of a household.
Public sector debt is private sector surplus.
The current American debt is more than the current GDP. That would be fine, if we were paying it down, but it’s growing faster than ever.
It would also be fine if it was healthy debt. Debt taken to improve infrastructure in meaningful ways, improve education, shit, even a war debt to create an old school tributary state (economically speaking).
And it would all be fine if everyone in the room were adults, and there wasn’t a significant portion of America actively and willfully trying to cause governmental collapse.
The American citizen, on average, will spend $37,000 in the next decade to pay the interest on that debt, $12.4 trillion in total.
All without universal healthcare mind you. Or, on average, a reasonable retirement age.
You need to start asking yourself whether the people who keep assuring you not to worry your pretty little head about the APR on your loans, and they are ultimately partly your loans as a citizen, are actually acting in your interest.
I get your point, but they cant just “print” currency so we could actually not be able to pay when people/countries stop buying the bonds or lose faith in the system.
Whats really neat is that modern credit score systems are only 40-50 years old
And what’s sad are the number of people that act like credit scores are a force of nature we just have to accept
Tell me you don’t understand how credit score works without telling me you don’t understand how credit score works
The US also has a credit score but with other countries they do business.
I wonder how many debt collector calls the Whitehouse gets a day
How much does the USA have in assets? I’m willing to bet more than $34,000,000,000,000.00.
I’m not even one trillion in debt
