Loading ...Lets talk national (United States) debt
Is there any one smart way around it (aside from massive currency devaluation)?
If not, why arent more people buying PMs? This can only end badly for paper holders.
I suppose reserve currency status helps. But will this be the case in 5yr? If not, what happens to USD & Gold?
Whats the point of no return debt level for bondholders & purchasers? (Liquidity dries up due to concern over debt levels & rates start rising quickly) How have we not passed it yet
We have been having this discussion for about 20 years now…As long as the majority want the system to continue to work…I guess it will continue to work.
One thing I don’t grasp…If everybody and every government owes money ….who do they owe it to ?
Maybe its all just a wash and nobody owes anybody
The element that I think causes it not to ‘wash’ is what is the value of what is owed in terms of what it can buy in the creditor nation or household? The US owes a lot however through the magic of stealth inflation (for now) it hopes to pay back that debt going forward with dollars that will buy less product in the receiving country (or household) – Fed rate raises will NOT be allowed to kill the baby bull of inflation (yet) guaranteed! This is one reason I think we could be in for a surprise non-rate raise tomorrow – we shall see. Deflation is the mortal enemy of a debt laden economy – gov’t lends money that can guy MORE product outside of US and in local households – good for borrowers not good for lenders – bad for Gov’t spending programs (power and control). That’s my take anyway.
I partially agree, but it seems like something has to give. I guess its a matter of when. Be it bad auto loans, student debt, interest rates, currency/trade wars. Seems like everything is priced to perfection and PMs are priced like nothing matters.
We keep hearing there has never in history been more debt BUT there has never in history been more people…and never in history more homes and never in history more cars and never in history more phones and TVs and stuff of all kinds including above ground gold BTW.
I owe you, you owe him, he owes me….round and round it goes…why does anything ever have to be paid back net net ? More stuff is Progress…More stuff = More debt….everything is in balance
No ?
that’s the way she goes until no more buyers. A healthy system works with interest rates around 7%. Saved money grows, houses not overinflated, and people actually save $$ instead of the home atm. All levels of Gov’t over borrowed and now the tax man cometh. New law in Canada now that any home residence sold must be reported on income tax. This will soon catch the flippers as business income. Penalties and interest going to clean out many many people that thought they were fine. Most assume there is a 1 year limit to live in dwelling before you can sell tax free. Nada. Myth! Must have valid reason to move, ie: work, downsizing and such. Not just move across the street and redo legal. Tax man coming and going to clean out a HUGE chunk of the late middle class. Bit off topic but no return, she gonna blow up the whole banking system,
Robbery! Where does the money come from when you sign the loan docs for a house loan? It is created through fractional reserve banking and the money is created from thin air. Your signature on the document creates the money put into the system, it is your labor that creates the credit, your signature. Any tax on that is essentially taxing your labor. Government is a living breathing entity and produces nothing but consumes everything, this is why they always die a violent death, you can only take more than you give for so long before people get tired of it. We are living in interesting times because it is all coming to a head.