Loading ...US $ 37.5 Trillion – US Government Debt – Sounds Big? -Who Owns the US National Debt ? – Will the US Default on its Debt ?
BOOM FINANCE HAS PUT OUT ANOTHER PIECE ON THE US DEBT SITUATION
FOR SURE I CAN SAY PERSONALLY I HAVE NEVER HAD AN INKLING NOR A CLUE ABOUT HOW THIS DEBT THING ACTUALLY WORKS….ZERO
I AM PRETTY SURE I AM IN THE STRONG MAJORITY HERE
SO IN THAT CASE WE ARE ALL SUBJECT TO PERHAPS INCORRECT ASSUMPTIONS ON THE IMMINENT COLAPSE OF THE USA DUE TO A SOVEREIGN DEBT “CRISIS”
WE HEAR THIS ALL DAY EVERY DAY FROM MANY MANY FINANCIAL SOURCES
37 TRILLION DEBT AND CLIMBING ..UNSUSTAINABLE …IMMINENT DISASTER
WE HAVE BEEN HEARING THIS FOR DECADES …SORT OF LIKE THE WORLD WLL END ANY DAY NOW BECAUSE OF CLIMATE CHANGE
AND WE JUST BLINDLY ACCEPT THIS ..EVEN THOUGH MOST IF US DON’T HAVE AN INKLING OR A CLUE ABOUT HOW THE DEBT ACTUALLY WORKS
IT’S COMPLEX FOR SURE BUT BOOM DOES A GOOD JOB IMO EXPAINING IT HERE
SO IF YOU WANT TO KNOW…READ THIS AND MAYBE JUST MAYBE …YOU WILL AGREE…WE HAVE BEEN HOODWINKED AS SURE AS THE CLIMATE CRAZIES HAVE BEEN HOODWINKED BECAUSE THEY NEVER UNDERSTOOD CLIMATE
https://boomfinanceandeconomics.substack.com/p/us-375-trillion-us-government-debt?
PS….IF GUS IS STILL HERE I WOULD LIKE TO POINT OUT THAT CRITICAL THINKING IS ALIVE AND WELL HERE AT GOLDTENT …THIS IS NOT SOMETHING THAT MOST OF THE MEMBERS HERE AGREE WITH BECAUSE YES ON THIS TOPIC WE HAVE BEEN LIVING IN AN ECHO CHAMBER…SOME MAY CHANGE THEIR MINDS ABOUT IMMINENT DEBT DEFAULT AND SOME WILL NOT…BUT AT LEAST WE HAVE AN ALTERNATIVE VIEW NOW ..I DON’T EXPECT A RESPONSE BECAUSE I THINK YOU ARE A HIT AND RUN KIND OF GUY…REGARDS FULLY
From the article:
“Will the US ever Default on its Debt?
The answer is No. For default to occur, the US Dollar would have to collapse internally and externally (causing a Hyperinflaton event in the USA) or the US would have to experience a persistent, severe high inflation event domestically.”
That last part of the sentence is most often the Method of Default of choice and is exactly what happened to the USD between 1965 and 1980 and what we are in the middle of now.
It’s called Financial Repression, stagflation where dollars in circulation go UP (upon which interest is paid by the US Gov’t) but growth remains stagnant (velocity of $).
The fact that Gold was $300 in the late 90’s and more than 10x today is a TELL that although citizens don’t think their wages have gone down, they BUYING power surely has – WHICH IS WHAT MATTERS.
This Boom guy declaring the answer is absolutely ‘NO’ apparently believes that buying power means nothing so long as debt servicing can continue. Once again, I believe this guy is an MMT shill. In fact I read the entire article to see if anything has changed in his argument/presentation.
“IS DEFICIT SPENDING GOOD FOR THE ECONOMY”
“If a Government spends more than its taxation revenues, then it is said to be engaged in Deficit Spending. Most nations do this. Why? Because it makes sense. It has the effect of Turbo-charging an economy. It takes funds from savings held in the financial sector and re-circulates them through the real economy of goods and services. That money is then returned to the investor, the holder of the Treasury securities, who can re-invest them (effect a Rollover) or take them elsewhere in the investment universe.”
He then goes on to cite how countries like Japan Greece and Italy who have higher Debt to GDP’s than the US – a good thing.
“Of course, the Government must pay the investor interest generated during the term of the investment but that is a small price to pay for the utility of the money volume and its velocity in the real economy.” <> THE PRIVATELY HELD FED BANKS AND THEIR INTERNATIONAL NON-SOVEREIGN INTERESTS << , generated during the term of the investment but that is a small price to pay for the utility of the money volume and its velocity in the real economy." << AGAIN look at the Velocity of M2 chart presented above.
If I was a Federal Reserve member bank, I would definitely be hiring mr. BOOM to sell my message that DEBT is GOOD and no harm can come from it.
Total and complete Bull$#!T.
The <> arrows messed up my last point, which should have read:
“Of course, the Government must pay the investor interest generated during the term of the investment but that is a small price to pay for the utility of the money volume and its velocity in the real economy.”
This website shows his argument about the resulting velocity in the real economy has been BULLSHIT over the past 25 years.
https://www.crystalbull.com/stock-market-timing/Velocity-Of-Money-chart/M2/
A more accurate description of what Boom should have said was….
“Of course, the Government must pay the PRIVATELY HELD FED BANKS AND THEIR INTERNATIONAL NON-SOVEREIGN INTERESTS, generated during the term of the investment but that is a small price to pay for the utility of the money volume and its velocity in the real economy.” << AGAIN look at the Velocity of M2 chart presented above.
If I was a Federal Reserve member bank…… and so on as above.
That was excellent reading. Thanks!