On 10/10/2018 2:15 PM, AMuzi wrote:
On 10/10/2018 12:56 PM, jbeattie wrote:
On Wednesday, October 10, 2018 at 7:29:47 AM UTC-7,
wrote:
blah
Plus, my point is that Trump used bankruptcy as a way of doing
business -- screwing down creditors and discharging debt.Â* Debt
default is not an option for the federal government (maybe the
Argentina federal government, but not the US), and thinking Trump
would be a great president because he was supposedly a great
businessman is like thinking a typist will be a great pianist
because a piano is just another keyboard. Macro economics,
monetary policy and the business of governments is a lot different
than putting together some single-asset LLC or corporation to do a
real estate deal, even a big real estate deal.


- Jay Beattie.

I'm wondering what court you've ever been in where the business
owner with money could get away without paying creditors.


All of them. In a corporate bankruptcy, the several
shareholders' personal assets are not at risk.Â* I lost my 5%
share of a firm which did go belly up in 1985 but I did not
lose my own house over it.

I'm no expert on LLC rules but my understanding is that they
function similarly such that the firm's assets are the limit
of liability


Well that's what I meant of course. But you would normally invest
money into a company that would use your money for infrastructure and
wages wouldn't you?

I thought you were talking about risk and who pays creditors (if
anyone) in the event of a business failure.

Yes, the owner of a start-up has to use personal or investor money to
make payroll. The federal government, however, is not a start-up.Â* It
does not have some product in the pipeline that is going to explode
onto the market and produce revenues sufficient to retire debt and
pay-off investors. The only investment income earned by the federal
government is on its own debt.Â* It also gets royalties and has some
other income streams (apart from taxes), but . . .
https://www.politico.com/agenda/stor...iveaway-000645


Anyway, the business of government bears little resemblance to
property development.



If any other entity kept books and reported the way the United States of
America does, all its principals would be tried, convicted and jailed
promptly.

Speaking of other entities: I'm often interested in how things are done
in other countries.

So regarding this discussion - are there other countries that have
better government financing schemes than the U.S.? What exactly do they
do that we don't?

I suspect that there are better ways. The U.S. is nowhere close to the
top of many desirable lists.

(Not that I'm passionately interested in government financing or
classical economics...)

--
- Frank Krygowski