Swiss Finance Minister Chides US, Europe Over ‘Time Bomb’ Debt Levels

We got JPOW and his 🖨️s

Swiss have their Swiss 🧀 and army knives

lol finance minister just means “not good enough couldn’t get a real job”.

US debt is a serious issue, but the august mini-crash wasn’t caused by it.

I still don’t understand why the government needs to borrow money when almost all money is created out of nothing by private banks in the form of debt. Seems like a scam.

Many people here don’t seem to understand US debt, so here is chatgpt’s answer to whether Us debt is out of control:

The question of whether the U.S. debt level is “out of control” is a matter of perspective and depends on several economic, political, and fiscal factors. Here’s a breakdown of the key considerations:

1. Current Debt Levels:

• As of 2024, U.S. national debt exceeds $32 trillion. This is a significant amount, and the debt-to-GDP ratio (a common measure of a country’s debt relative to its economic output) is over 120%, which is historically high for the U.S.

2. Sustainability of Debt:

• Interest Payments: A crucial aspect of managing debt is the government’s ability to service it. The U.S. still has the ability to make interest payments on its debt, but as interest rates rise, these payments consume a larger portion of the federal budget, potentially crowding out other spending priorities.
• Economic Growth: If the economy grows robustly, the debt-to-GDP ratio could stabilize or even decrease, making the debt more manageable. However, slow growth or a recession could exacerbate the debt burden.

3. Impact on Future Generations:

• High levels of debt can be a burden on future generations, who might face higher taxes or reduced government services to manage or reduce the debt. However, borrowing today for investments that spur economic growth, such as infrastructure or education, could benefit future generations.

4. Historical Context:

• The U.S. has had high debt levels before, particularly after World War II, and managed to bring them down through a combination of economic growth, inflation, and fiscal policy adjustments. However, the current debt level is more peacetime-related, driven by tax cuts, entitlement spending, and emergency measures like those during the COVID-19 pandemic.

5. Global Confidence and Reserve Currency Status:

• The U.S. benefits from issuing debt in its own currency (the dollar), which is the world’s primary reserve currency. This status allows the U.S. to borrow at lower interest rates than other countries might be able to. A loss of confidence in U.S. fiscal management could undermine this advantage, though there is currently no imminent sign of such a shift.

6. Political Will:

• Managing the debt effectively requires political consensus on fiscal policy, which includes decisions on spending, taxation, and borrowing. The U.S. has faced political gridlock on these issues, which complicates efforts to address the debt sustainably.

7. Comparison to Other Countries:

• While U.S. debt levels are high, they are not unprecedented globally. Some other advanced economies, like Japan, have much higher debt-to-GDP ratios. However, the economic and social structures of these countries differ, making direct comparisons challenging.

Conclusion:

Whether the U.S. debt is “out of control” depends on future economic conditions, fiscal policy decisions, and the government’s ability to manage interest payments and promote growth. While the debt level is certainly high and could pose risks if not managed prudently, it is not necessarily “out of control” in the sense that it poses an immediate crisis. However, without proactive measures to address underlying fiscal imbalances, the situation could become more precarious in the future. The key is finding a balance between necessary borrowing for growth and ensuring long-term fiscal sustainability.

A debt crisis would be an event for sure. But at the end of the day, the USA infrastructure and physical assets that have been built won’t dissapear. A better term might be a “re organization” of how money is dispersed… Might be coming.

Aka government spending might fall dramatically for a few years, causing hard decisions on how much businesses and the wealthiest contribute to our government. It’s just a timebomb of when government is forced to raise taxes.

Or, more likely, continue to inflate away the debt

Meanwhile swiss banks implode, lol

“Meanwhile we’ll keep eroding your tax base by attracting your companies and wealthy investors.” Kind greetings, the Swiss (who incidentally with Credit Suisse have barely closed the books on the biggest near bank failure since the great financial crisis).

is this what granny means by the Pot calling the Kettle Black?

If maybe the swiss weren’t hiding all that money in tax shelters that debt would be lore manageable.

Nice, Canada must be fine.  

Switzerland can be neutral and chide these nuts.

This is really a shitty 2 sentence review of a very long discussion about several Topics and also from our newspaper which always had naked girls on page 2…

First of all Switzerland has it’s own „formular to balance defecits, over economic cycles”

https://de.wikipedia.org/wiki/Schuldenbremse_(Schweiz)

That’s why she is defending it and showing that debt can be managed differnently.

This is currently a big discussion as we anyway are on a GDP/National Reserve Balance sheet, ratio like Japan.

We are dependend on the dollar, all big Companys even report in Dollar.
A weak dollar makes our earnings bad, while a strong CHF makes our exports difficult.
That’s why the SNB has a huge balance sheet of foreign currencies.