We have already run into the problem of not being able to sell our Treasuries, and we issue debt. In 2008, the administration started Quantitative Easing (Q.E.), whereby the Federal Reserve printed U.S. dollars to buy U.S. Treasuries. Because no other nation wanted to buy our debt.
Instead of heeding this dire warning, our government issued $8 trillion in new debt — debt that you have to repay. Remember that federal debt = federal spending. The market warned us once in 2008; it is warning us again.
Just don’t try to explain that the higher interest you pay reduces your ability to buy ANYTHING on credit if you don’t have the cash.
AND the Federal Government has to pay MORE interest to make payments on the debt they can’t afford with YOUR money.
Soooooo, the Federal Government will have to tax you MORE just to pay the interest on the debt that they really can’t pay....
So, raise interest rates......LOL
We are Argentina...shortly.
HEY! I’ve got an idea. Let’s SPEND OVER ONE HUNDRED BILLION DOLLARS on the UKRAINE PROJECT!
Yeah, that’s the ticket.
Bkmk
I yearn for the old days when the Chair of the House Appropriations Committee kept a lid on spending, I mean a lid on corruption.
It’s sad when I trust Wilbur Mills and Dan Rostenkowski more than I trust China Mitch and whoever happens to be Speaker.
With not even a pretense of a budget, these continuing resolutions offer corruption never imagined by petty thieves like Mills and Rostenkowski.
All fueled by the phony fear of a gubmint shutdown.
“A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves largesse from the public treasury. From that moment on, the majority always votes for the candidates promising the most benefits from the public treasury with the result that a democracy always collapses over loose fiscal policy, always followed by a dictatorship.”
yet we have the best crappiest money in the world. What does that tell us.
WE are in very dire straights. Biden has created a monster that is self-perpetuating. It will not end with him. I’m not at all sure it can ever end except that it is unsustainable. Financial ruin is all that will stop it. Default, collapse and ruin.
“national debt = federal spending”
That one’s not true but he goes on to say,
“Federal spending in excess of tax revenue = debt.”
That one is true but I’d say “taking on debt.”
He says,
“we are being placed into debt against our will.”
In the final analysis not true because we elect our leaders.
But once we are deceived into allowing the borrowing, we are on the hook to pay it off, no getting out of that.
A day or reckoning in real estate prices, along with most other things, has to be at hand. Surely it is? If you want to realize a gain from this stupidity you better sell fast and not by. It is all timing and most are not successful at it.
People made a lot of very bad decisions because of and since covid. biden just made them all worse. Eventually they will have to pay for them with a realized loss. Trump's misguided summer of free money and no work was the spark that kindled the fire. That big hole in production led to shortages and the start of rampant inflation. biden added insult to injury by extending it all and then doubled down on it time after time.
No economy can sustain or even survive such a loss of productivity and unbridled spending and printing of money as we have in the last four years.
The day after tomorrow is Tax Freedom Day.
If your outgo exceeds your income, your upkeep will be your downfall.
If you like this government, keep funding it (buying government bonds, T-bills). But if you don’t support the bureaucratic Deep State or the woke Biden regime... why keep supporting it financially? Just something to think about.