Posted on 12/04/2022 5:10:53 PM PST by Oldeconomybuyer
Wake up, America. That ticking sound you’re hearing is the American debt time bomb that with each passing day is getting precariously close to detonating and crashing the US economy.
Businesses, consumers and especially the federal and state governments have become hooked on red ink as if it were crack cocaine. Two factors have fueled this borrowing binge: an era of low interest rates (that’s coming to an end) and falling real wages thanks to the 15% rise in prices of Bidenflation.
Let’s review the borrowing up-escalator that accelerated during COVID but hasn’t subsided.
The King Kong of borrowing is Uncle Sam. The national debt is $31 trillion when including Social Security’s and Medicare’s unfunded liabilities. That’s getting close to 150% of our national gross domestic product of $22 trillion. Some $5 trillion has been added in just the past three years. Balancing the budget seems like a pipe dream these days.
Next add state and local government debt and unfunded liabilities. The American Legislative Exchange Council estimates that at just under $6 trillion.
Now what about American households? The latest estimate for consumer debt is $16.5 trillion, per the New York Federal Reserve. Most of that debt is mortgages, but increasingly Americans are taking on debt for routine expenses to pay monthly bills like groceries and gas at the pump. Thanks, President Joe Biden.
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You’re not screwed. Not you. Lots of people on FR have your back.
It cannot be avoided.
In fact I’ve half joked that one of the reasons for the Millennium is that the Lord isn’t letting anyone near the new heaven and earth till all the debs run up at the end of this age are completely paid off in non-inflated value.
It is called ruling with a rod of iron after all.
In our lifetime we witnessed a major world power go bankrupt. It will happen again.
Unfunded/underfunded public pension funds will take down the economy. The only question is When?, not if.
deliberate, we are awake, who do we turn to?
When my father bought his first house in 1968 or so for just under $30K and he spent my whole growing up years in the 1970s grumbling about his $152 mortgage. By the early 1990s, when the average mortgage was well over $1,000/mo, he was still making that $152 payment, but not grumbling all that much by then.
He then sold that house for about $300K and retired down to Alabama where he paid cash on a double-wide and had plenty left over.
Of course being debt free is great but if you have to have some debt, let it be a fixed rate mortgage with a decent rate.
I was watching this Swiss wealth manager being interviewed on YouTube. He was talking about Central Bank Digital currency and the great reset, something he expects in the not too distant future. He said those holding credit card debt will benefit because it will be wiped clean, and those with an existing mortgage will continue to pay it off in “old dollars” will will become increasingly devalued as the CBDC takes off so they benefit too. he said the old dollars can be traded in 1:1 with the new currency only up to a point, and the wealthy will be out of luck because they won’t be able to switch over all their wealth before it becomes worthless. He doesn’t recommend holding large amounts of cash or cash equivalents like US Saving Bond because you will only be able to convert a limited number over at the 1:1 ratio, the rest will remain in a sort of worthless limbo. So if you see signs they are about to do this currency reset & CBDC, max out them credit cards quick lol.
That would be me.
> How about steal your retirement, Comrade. <
By golly, you’re right. I forgot about that option. There has been some talk in Democrat circles about seizing IRA’s, 401k’s, etc. and replacing their stock holdings with long-term federal bonds that pay next to nothing.
Onward the Revolution!
As one Freeper pointed out at the time … “If the Fed doesn’t raise interest rates under these conditions, then when would it EVER raise them?”
87K 🌡️
We're debt-free with our home paid off, our cars paid off, and sitting on a bunch of cash. Worried about that, with few good options for investing. So we helped a daughter with a hefty down payment on a new home, and she's paying the mortgage. The cash is better off in real estate, and our names are on it. Also pulled cash from banks and spread it around in credit unions which are safer. Getting ready for the reset, to reduce the hurt, but everyone is going to be hurting. I don't believe that credit card debt would be forgiven, can't see that happening. So we don't carry any credit card debt.
If we paid, exactly WHO would be 66 Trillion richer?
Who has that kind of money to loan us in the first place?
/s
Before anything else there will be a Debt Default of some type. That debt will then sell for pennies on the Dollar and then the Federal Government and The Fed will then buy not back and retire it for maybe $0.25 to 30 cents on the Dollar. Or you get Brand new 2% Government Bonds to replace what you had.
The only thing that’s going to be crushed is the money center banks.
What they do is not “the economy”. Counting their usurious raping of the population as part of the GDP conceals how badly off we actually are.
The end of this evil debt-based “money” system will be a blessing to us, not a curse.
Back in the late 80s I listened to an interview with Libertarian Harry Brown.
He said that to eliminate the deficit and the debt all that was required was this:
Freeze all federal spending at current levels. Cut nothing. Simply do not spend more. In 5 years the annual deficit would be gone. Another 10 years and the national federal debt would be paid off.
I’m guessing that is an impossible solution now, even if our rulers were willing. Which of course they are not.
That’s sweet. Thanks. :)
My parents were also children of the depression. I was taught and learned the SAME lessons.
We are debt free including mortgage and we have a few bux in savings. It took a lot of work and quite a bit of time to get there. It’s a great feeling!
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