Quote:
Originally Posted by VenezianBlau 87
Dear Tabs,
At what level (or ratio) of debt does our country financially collapse?
I remember in the late '70s that $4T was going to be our downfall.
The postwar boom was over by then. Double income households are on the decline thanks to Covid as some families realize they can make it on one if they cut back.
Saying that younger Americans should be frugal was always good advice.
So, what's changed?
Thanks for your consideration,
Bob
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I don't think there is a set debt level for a collapse.
In 2020 I postulated the FED could run the balance sheeet to 9T to 10T (lets say mid 9's) without a problem...at those levels they are at Red Line. After that it becomes dicey.
If you notice the FED is over 9T...they are raising rates, are Tapering and want to reduce the Balance Sheet...They are raising rates in part to shore up USD viability and or credibility.. Looks like my thoughts were correct.
The BRIC's are discussing creating their own Reserve Currency out of a Basket of Currencies..does that tell you something? Couple that with the Saudi/Chinese deal about settling their oil trades in the RMB...and not the USD...that should scare the shyte out of you?
Being "frugal" is Jim Kramers terminology... maybe the better way to say it is that Americans are going to start to have to do without...