Quote:
Originally Posted by Sooner or later
Tabs, I am concerned about the debt moving forward. Our current level is high though not disastrous. Debt servicing will eat our lunch if our debt continues to climb. (Debt amount and higher interest rate)
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You are talking DEBT 101...
It already is "disastrous." The engine of debt creation is really set to gain speed as the entitlements need to be funded... LBJ made the entitlements into an ACCOUNTS PAYABLE while funding his and every other Presidents GUN & BUTTER fiscal and monetary policies. That comes to about 100 TRILLION USD that is going to become INTEREST BEARING debt...
Did your azzhole just say OUCH...
DEBT puts a drag on the ability of an economy to perform.
As the CONSUMER DEBT BUBBLE BURST IN 2008, it was SUPERSEDED by the MOTHER OF ALL BUBBLES .."
THE SOVEREIGN DEBT BUBBLE"*>....from about 11T in debt when BO took over to 21T in 2018. Increasing by about a Trillion a year as the SS entitlements get paid out..
Go back to what I wrote starting in 2009, I laid it all out and have repeated it ad naseum...please forgive me for repeating myself...BUT NOTHING HAS CHANGED... I am just stating the facts....REALITY even if that is boring.
Do you want me to create a fiction...like you hear on the news or from politicians?
Hey everything is swell nothing to worry about go back to sleep....you will all live like millionaires in the morning.
The US govt is stimulating/juicing the economy by what 3.5T a year of which about a Trillion is borrowed....that amount of money should make any economy run like a scalded dog...according to the GUYS WHO KNOW WHAT THEY ARE TALKING ABOUT..who are so oft quoted on this Board...BUT WHAT HAS THAT AMOUNT OF MONEY DONE SO FAR>>>>a 1.6% economy so far....
So far UNDER Trump the economy has experienced a BUMP???? I am watching and wondering? But what I go back to is a in TRILLION DEFICIT SPENDING and WONDER HOW ROBUST IS AN ECONOMY THAT IS BORROWING THAT MUCH MONEY? It sounds FISHY to me????? So I wait and wonder has anything really changed?????
Fact the US consumer is tapped out...the broad based American MC jobs are getting few and far between, no savings, nor cash, debt to the eyeballs. The US consumer has been the
Fatted Calf of the Global economy, the consumer that has propelled it to the height it has achieved...Without that consumer the Global economy STUMBLES... The US Govt has become the surrogate Consumer by providing 23M paychecks...so the spending can continue. When that borrowed US govt money runs out the
Sovereign Debt Bubble will burst...
Then because of the position of the US economy and USD it creates a world wide economic tsunami. (That is why the Chinese have been trying to get away from US Global economic and USD hegemony as fast as they can since early 09. They looked into their crystal ball and shyte their pants...aghast at what American brilliant ineptitude has wrought upon their heads.)