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.
(Excerpt) Read more at nypost.com ...
This house has zero debt and we’ve deeply hedged into metals including gold, silver, copper, and lead.
Just saying!
One reason I’m glad to be debt free. No mortgage, no car payment.
But ammo, and make local connections. It’s falling apart.
Stephen Moore, the cocktail party economist. The same D-bag that Trump put up for The Federal Reserve Board until they found that Moore had income from taxation. He has a PhD in econ-light from GMU meaning policy.
Its $33 trillion PLUS $173 in unfunded liabilties.
All directed and produced by lawyers turned professional politicians
Dittoes. Paying off the last of my credit card debts a few months ago was a huge relief knowing the rough financial times that we’re heading into.
"Live below your means" was how he,personally,lived.
There are ways out of this massive debt. The Feds could simply repudiate the debt. Or they could raise taxes to astronomical levels to pay the debt back.
Those two possibilities are non-starters. Forget about them. So what’s left? The Feds could inflate their way out of debt. Pay back the debt with worthless paper. I don’t know when that’s gonna happen. But it’s gonna happen. It’s the only way out. And hey, it worked for Zimbabwe, right?
For now, defaults and delinquencies are low, but we should have learned financial seas can shift on a dime. Meanwhile, the feds keep feeding the debt surge by increasing taxpayer mortgage insurance for million-dollar homes.
Debt isn’t necessarily a bad thing. It depends what we’re getting for it. When we borrow for roads or factories or homes or to finance our military to win wars, borrowing can be necessary and appropriate.
My favorite book which teaches “Living below your means” is “The Way to Wealth” by Benjamin Franklin.
I am so screwed.
The debt will never be repaid - and it’s not supposed to be.
“Moore had income from taxation.” What does that mean? Please explain.
Just about debt free, then going off grid.
How about steal your retirement, Comrade. For the good of all.
The debt will obviously be repudiated.
The Bible and even a superficial understanding of history both say so.
And the usurers? Their future is, shall we say, not bright.
Don’t forget that debt that will be added to pay reparations.
Reparations for the descentants of slaves, reparations for climate justice, reparations to Mexico for losing the Mexican-American war, reparations to African countries for enslaving parts of their populations etc. etc.
And don’t forget the massive debt that will be incurred to build high-speed rail across the country.
Those payments should require at least $20 trillion in new debt.
What cannot go on, will not go on.
The debt will obviously be repudiated.
The Bible and even a superficial understanding of history both say so.
And the usurers? Their future is, shall we say, not bright.
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