Kramer Is Klose, But Still Misses The Mark
 

https://www.cnbc.com/2022/06/22/jim-cramer-on-why-gen-z-has-no-excuse-for-not-investing-their-money.html

Kramer says, "That younger Americans are going to have to learn to be more frugal."

America starting in the late 50's early 60's forgot how to be frugal. Americans had good paying jobs and money in the bank. Everything was turning up roses for Americans where the future looked nothing but bright. By the 80's those good paying jobs started to go away, giving way to foreign competition and lower wage scales paid in foreign lands.. Yet American adjusted with the wife going to work and then using the credit card to maintain lifestyle. That private national credit card was what was maxed out in 2008. Where American's once again adjusted by switching to a Sovereign debt credit card facilitated by monetary policy.

Now we have nearly maxed out the Sovereign debt card at 31T and monetary policy bank is losing credibilty. Inflation is an adjustment of the true value sic purchasing power of the USD. With wages remaining more or less constant means that the purchasing power sic lifestyle of the American people is now going to hit the skids..

So it is NOT A CHOICE that Americans are going to have to make. They are going to be FORCED to be more frugal. and live within their means..

I am glad that I am not in my 20's or 30's right now.
It will not be fun.

Never fear. The pendulum will swing back in due time.

Kramer is out...but still hits the mark. :D

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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

I remember Reagan TV ads where he was talking about 1T in national debt... being a LOT.... so without looking, it was around that in '80. College students didn't have CCs back then. A dozen years later, the national debt was around 5T, and the industry had the American comsumers addicted to debt ... just like a junkie. Debt... the opiate of the masses.

I think it was the trickle down theory ... and Americans pissed on their own legs :(.

Tabs can take it from here...

Young Americans are now choosing not to have children because they can't afford them (actually people in most first world countries can't afford kids).

Still no answer from Tabs. You're one of my favorites when it comes to posting a new thread and bailing on questions

I just don't sit in front of the screen as much as I used to. I let the conversation develope without my further input. For years I responded to questions and or comments..now I am tired.

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...

Look up BRICS. There is a new financial system being put in place as we speak. Swift and the US has chit the bed, our petrol dollar is dead. They lied to you about Ukraine and all the other BS. TBTB are literally sinking us, the working guy. Russia, BRICS, what the F we were doing over there? Russia said FU, we doing this on a commodity/gold based payment system. They will win this one while breaking our backs.
The Fed have printed us into destruction. They are already talking about a digital coin. You will see it in the next 24 months, they have no choice. Gonna get really ugly.

The question is why has the FED dun fked us?

The answer is, because if they didn't you would be eating your dinner out of a garbage can. Americans maxed out their credit cards by 08, the mortgage crisis was just the last gasp of a credit driven US consumer...To prop the system up to keep the music playing the FED printed to facilitate the US government borrow and spend regime.

The question I have to ask is, is the USA in a crisis..considering all the things that are going South?

School shootings, protests including attempted assassination of a SCOTUS justice, 2 SCOTUS rulings, GC bill passage, senile Biden, inflation, raising interest rates, stock market decline, economic wt at least 1 qtr negative growth now maybe 2 which means recession, war in the Ukraine, China vs Taiwan, Petro dollar at risk, EU gas shortages, US political dysfunction reaching the boiling point and am I missing anything?

It seems that this year is the culmination of a lot of problems that have been brewing for years.

Is 2022 any worse than 1968 ... I don't think so really.... warts and all.


The vast majority of the debt is owed to us/US... yep, the cheap, easy credit has lead us to this addiction, but nothing a good ol' "cold turkey" can't cure. Still wouldn't trade the USA economic situation with anyone elses'.... we've just got to do it... either by choice or harsh reality.

It won't be by choice.... it rarely is, but once in a while a junkie just quits the addiction... jmho.

Financial institutions that include PENSION FUNDS... SS in particular...

The FED is holding 25% of US govt debt...38% of all 10 and 30 year Treasuries..

Cold Turkey means what gets cut....cut SS and see what happens. Who is going to pick up the tab of supporting Ma and Pa....the kids...and that will break the budget of most American families.. and that means the end of the Global Economy of Scale.. Cut the military budget..and the MIC gets laid off...cut welfare...and the poor conduct peaceful protests..they will come to your home and ask for a handout.. These were some of the reasons why they did not go "cold turkey" back in 09.

You are right it will not be by choice...


With rising interest rates the govt is going to have to devote more of the GA revenue to paying the debt service...all things being equal that means the govt has to borrow more to keep up just with the current level of expenditure.. Now you want to add in the New Green Deal and or Build It Back Better...whoops how does that get funded?

Every which way you figure this thing there is a Catch 22 that leads to downfall. So that is why "just ole fashioned Cold Turkey" ain't gona save the system. The system is Tot..finished, finito.

I did the calculations back in 09 and that is why the domed and glomed. It has just taken 13 years for you Boyz and the rest to get to the point where ya are figuring it out. The Beast is now staring you in the face...


And yes it is worse than 68, in 68 the US was the richest and most powerful nation on earth..today we are bk..

KC you are still hanging on to hope...which is now a delusion..

Tabs, I was really thinking about the social unrest, etc. between back then and now, but I was just a kid. Not tuned into it then .... and not tuned into it now.

Media/political noise from both extremes of the spectrum for the most part imo .... same ol', same ol'.

Good posts.

And yes, this is why this time is different than any other era or crisis in US history:

“ And yes it is worse than 68, in 68 the US was the richest and most powerful nation on earth..today we are bk..”

The USA is still the richest and most powerful nation on earth.... if most of the debt is owed to ourselves (and it is), then just like corps do ... we declare bankruptcy and reset.... shaking our collective heads and saying....

Tabby should've told us boyz ;)....

Both political parties suck fiscally .... each worse than the other :(.

Two concepts that should be non controversial:

1. Nobody (individual, company or country) can keep increasing debt forever.
2. Nothing of value is “free.”

A country that has 10% of people who don’t understand that is ok.

But given our changing demographics, and 40+ years of the almost complete takeover and changed philosophical and world view amongst the educational systems, we have a voting constituency of which over 50% believes 1 and 2 are false.

This greatly influences how all elected officials, of both parties act (Exhibit 1, the almost universal insane bipartisan spending in the past 2 years).

TL;DR We are domed.

With over $100 trillion ($125 trillion?) in debt, we aren’t the richest nation in the world anymore.
Being the world currency, petro dollars etc has given us the ability to print and incur a mind blowing amount of debt, to keep the appearance of wealth, though.

Thought title was a typo, no Kremer cars here

An increasing strong dollar is what will crash the system. Ends foreign borrowing.

Hi Tabs, I apologize for my boorish comments earlier in the thread. You pretty much blew my argument with the comment below. My point was going to be there's no internal financial or economic limit to our debt...just the external one you and Skillet mentioned. I'm not sure it's such a bad thing as it'll force the US to act more responsibly as far as foreign expeditions and internal nonsense like the Green New Deal. The postwar boom was over a long time ago after all. Time to look after the US and stop being Big Poppa to the world.

this may be true for responsible Americans,
but others are pumping out litters and getting
raises for each one
The government can afford lots of kids
and it takes a village


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