The U.S. Economy Is Now A Giant Bubble. A 'Pop' Could Be a Disaster.

National Interest ^ | 3/15/2021 | Desmond Lachman

[Onthebrink]

Today’s everything bubble has been inflated by the extraordinarily low-interest rates produced by the massive amount of central bank money printing in response to the coronavirus pandemic. This raises the question as to what happens when the pleasant easy money music stops and interest rates start to rise. Past experience would suggest that when that happens, bubbles will start bursting and the emerging market economies will run into serious trouble as money is repatriated to the United States.

A basic problem with the Biden $1.9 trillion budget stimulus package is that it risks creating precisely such a scenario of rising U.S. interest rates that will burst the global everything bubble. It does so by risking a serious overheating of the U.S. economy.

[Roman_War_Criminal]

Lots of bad news out there about the sad state of the world.

Economy, Covid-19 hysteria, The Middle East on the verge of war, Hurricanes, Tsunamis, Earthquakes, droughts, and the list goes on and on.

We are living in disastrous times.

Call on Jesus now! Tomorrow might be too late!
John 10:9-13

[cuban leaf]

Oh, it will pop. It was headed that way before the pandemic nonsense. And when it pops it will impact the whole world which, when push comes to shove, is also a bubble.

It’s a domino thing.

[Flick Lives]

“Stagflation”. Everything old is new again.

[cuban leaf]

Economy, Covid-19 hysteria...

---

It was already on the verge of utter collapse. Frankly, the world’s economy was like a family that could no longer pay its bills and was starting to get a lot of “final notice” mail. And the lockdowns were the main breadwinner of the family now losing his job.

Yeah, It will be bad. I’m disappointed in the election results, but it is poetic justice that the democrats control the two elected branches of government when this all comes down. They own it. Bigly.

[fwdude]

A “pop” is the plan. What more “useful” excuse for full-on fascism could there be?

[Leep]

Jimmah loves “biden”

[Starboard]

The Fed will find a way to keep rates artificially low. Rising rates would increase the government’s debt burden too much and choke the economy.

The Fed will opt for the path of least resistance and accept high inflation as the price for continuing to levitate the economy. Of course, serious inflation has its own set of devastating effects too.

JMHO

[L,TOWM]

There ya go...

[1Old Pro]

We had a strong economy under Trump, albeit we are spending way too much. This is a big ship to turn but Biden’s horrible policies will take over the economy in 2-3 years. The market predicts these things 6 months to a year out. I look for a severe market correction around the Fall of 2022, just ahead of the elections. The GOP needs quality candidates for every single seat, they will all be in play with the poop hits the fan.

[PeterPrinciple]

It was already on the verge of utter collapse. Frankly, the world’s economy was like a family that could no longer pay its bills and was starting to get a lot of “final notice” mail. And the lockdowns were the main breadwinner of the family now losing his job.
Yeah, It will be bad. I’m disappointed in the election results, but it is poetic justice that the democrats control the two elected branches of government when this all comes down. They own it. Bigly.

---

Look to the demise of the soviet union, study it. We witnessed the demise of a major world power. Ours will be the same but different.

[Alberta's Child]

Our economy was incredibly weak even under Trump. We were celebrating over 3% growth rates that would have been considered an embarrassing failure as recently as the 1990s.

Like all fading empires, the U.S. is a decrepit old car showing obvious signs of running out of gas.

[Leaning Right]

I believe you’ve hit the nail in the head. Artificially low interest rates are great in the short term, but disastrous in the long term. And as we all know, politicians don’t think long-term.

So inflation is on the way. The only question is how long they’ll be able to hide it by twisting and turning the data.

[gathersnomoss]

Who is counting the votes?

[DoodleBob]

If I followed every TEOTWAWKI forecaster, I'd have missed out on wealth accumulation since 2007.

What am I going to do with gold when the SHTF? Can I eat it? Make shoes out of it? Defend my family with it?

I understand the historical allure of precious metals in bad times, but if the SHTF in 2021+ a premium will be likely be placed on food, water, ordnance, booze, and coffee. A balanced approach would suggest investing in those items and plowing the rest into wealth-building assets in case, ya know, The End is a few decades away.

I should also note that most doomsayers make a good living out of doomsaying. Except for this guy.

[Pollard]

https://usdebtclock.org/

When it goes pop is when we’ll see efforts for a global currency

[PeterPrinciple]

It does so by risking a serious overheating of the U.S. economy.

---

Where will most of this money be spent?

The interactions are complicated and the Invisible Hand still is there.

The poor and stupid spend their money as fast as they can, Where? Those items will inflate or be in short supply

The investors? Stocks are the only quick and easy investment so more money chasing few stock raises their price

Risky investments/gambling. Don’t hear much about lottery tickets any more. or the race track. How are they doing? But there is the electronic bit money thing in the news alot.

Conservatives investors and older investors. Lots of money in the bank, more than ever before. So all this is lent back to the govt at a cheap rate.

Wealthy investors. They don’t get the same investment deals you and I do, we get the dregs, the left overs they don’t want. They get special deals among themselves.

Invest in a start up business right now? Not much of that right now.

Farmland. Again all those deals go to the wealthy before we see on the public market.

Houses. At lease you can live in it. Rental property, risky but can still be done in rural areas.

I tell wealthy people to spend it and enjoy it while they can. But what is enjoyment any more?

The best investment might be people/future. I send more money to Trump and look at it as an investment, at least it is good entertainment. Find an individual who is worthy of investment of your time, money and effort. Rare but do exist.

You can invest in the Kingdom, has eternal rewards. Finding those good investments is not easy either.

Maybe the best investment is individuals, the future.

[DEPcom]

I use my Covid checks to pay closing close on land purchase... Land will always be there for me, you can grow food on it.

[cuban leaf]

Ours will be the same but different.

---

The difference is that I don’t think ours will go with a whimper.

It’s like divorce. When both sides are not all that committed to marriage in the first place, it can be pretty amicable. When at least one takes the “until death us do part” seriously, it can be a legal (and otherwise) bloodbath.

This nation’s constitution pretty much guarantees the latter. And yeah, I’m talking about the first and second amendments.

[Tilted Irish Kilt]

fwdude :" A “pop” is the plan.
What more “useful” excuse for full-on fascism could there be?"

Jeopardize everything and everybody, it creates a world-wide : "Reset".
Welcome to the great reset for world !