Income vs Expenditure

NLXSK1

NLXSK1

Well-Known Member
Blaze Master said:
if the US doesnt borrow money how did you get 14 trillion in debt
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That is the scary part. China is only holding about 1 trillion of our debt. I doubt foreign countries are holding a total of 5 trillion.

What the USA has started to do because it cant find enough buyers is to have the FED buy the bonds through intermediaries with printed money.

We are buying our own debt by printing money. What that is creating is an inflation bubble. However, the fed is forcing lending rates through the floor which is preventing the natural rise in rates. So they are artificially inflating another debt bubble. When this one bursts however, there is nothing behind it to pick up the pieces. This is the final bailout the US can do. Once it fails our economy is going to collapse on the weight of the debt the government has created.
 
Illegal Smile

Illegal Smile

Well-Known Member
NLXSK1 said:
That is the scary part. China is only holding about 1 trillion of our debt. I doubt foreign countries are holding a total of 5 trillion.

What the USA has started to do because it cant find enough buyers is to have the FED buy the bonds through intermediaries with printed money.

We are buying our own debt by printing money. What that is creating is an inflation bubble. However, the fed is forcing lending rates through the floor which is preventing the natural rise in rates. So they are artificially inflating another debt bubble. When this one bursts however, there is nothing behind it to pick up the pieces. This is the final bailout the US can do. Once it fails our economy is going to collapse on the weight of the debt the government has created.
Click to expand...
I don't necessarily doubt that, but we may as well carry it to its logical conclusion. If the US economy collapses, the world economy crashes with it, and we get to take a long field trip back to the dark ages. But the US economy won't really collapse (whatever that even means). We will just have a much lower standard of living. Keep in mind this is being done in the name of improving the average person's life and re-distributing wealth.

Those of you who have children or grand-children, I fear they have little chance of living the life most americans have come to take for granted. I consider myself lucky to have lived between the second world war, and the second civil war.
 
NLXSK1

NLXSK1

Well-Known Member
Illegal Smile said:
I don't necessarily doubt that, but we may as well carry it to its logical conclusion. If the US economy collapses, the world economy crashes with it, and we get to take a long field trip back to the dark ages. But the US economy won't really collapse (whatever that even means). We will just have a much lower standard of living. Keep in mind this is being done in the name of improving the average person's life and re-distributing wealth.

Those of you who have children or grand-children, I fear they have little chance of living the life most americans have come to take for granted. I consider myself lucky to have lived between the second world war, and the second civil war.
Click to expand...
Yeah, being in my 40's I fear that within the next few years to the next few decades that we are going to collapse.

We will never go back to the dark ages but yes, the standard of living is going to drop precipitously...
 
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