Originally Posted by
Torquelink
Given the size of Russia's economy (about the size of Spain's) and the success of Reagan's plan to outspend Gorbachev precipitating the collapse of the USSR, I would have thought that the best way of forcing Putin out of power would be for the US to ramp up military expenditure, forcing Putin and his cronies to follow suit until growing discontent from the increasingly impoverished populace finally caused him to be thrown out or to stand down?
Good analogy BUT it is wrong country with the debt issue.
https://usdebtclock.org/
US Debt is £23 trillion and rising, Currently 106% of US GDP and that based on 2017 figures. US will be paying more in interest than they are spending on defense budget. Debt levels are just going to get a whole lot worse than 110% of US economy, this doesn't account for the £14 trillion in personal debt or the $15 trillion in state and city debt.
Russian Debt is 13.5% of GDP or $250 billion, its Foreign reserves are $520 billion and it is running a $100 billion trade surplus a year.
Gold wise Russia has doubled its Gold holdings in 5 years. It holds 2207 tonnes, US holds 8133 tonnes, worth $102 billion and $380 billion respectively.
https://www.statista.com/statistics/...gold-reserves/
Yup keep spouting how Reagan bankrupted the USSR but that was 30 plus years ago when US had a Budget surplus.
Russia / China / India / Brazil etc are doing less business in US dollar and there is less to borrow and countries are not buying US Debt, Russia had $174 billion plus in 2010, now it has less than $10 billion.
Debt reaches a level when you can no longer make repayments as it is eating up so much of income. Sadly US is 5 years away from that and unless they can do something drastic the implications are massive for everybody. Trump tactics of adding tarriffs to Chinese import is good for US Govt as it dampens demand plus more importantly the tariffs go direct to US treasury.
The idea that the US can just print and print money is unsustainable.