Posted on 11/01/2023 12:50:58 PM PDT by ChicagoConservative27
For years, budget hawks warned about the damaging effects of the mushrooming national debt, which now totals more than $33 trillion. But they had to speculate about how a debt crisis would materialize because it was only theoretical.
We’re now beginning to see the real-life effects of an unsustainable federal debt load. To finance trillions of dollars in spending beyond what incoming revenue can support, the US Treasury is now issuing more debt in the form of Treasury securities than global financial markets can readily absorb. That forces the borrower — the US government — to pay higher interest rates, which in turn pushes up borrowing costs for consumers and businesses in much of the Western world.
It’s not yet a crisis, in the sense of an unavoidable calamity that will wreck careers and trash living standards. But the excessive debt of the United States now impacts anybody who takes out a loan or invests in stocks. Once a routine and unexciting part of the market, debt issuance by the Treasury is now a hot Wall Street topic as investors plot how to avoid losses — or capture profits — from this new source of volatility.
(Excerpt) Read more at finance.yahoo.com ...
Even when AI writes the articles, they are sometimes right.
Ramping it up for when a Republican is in the White House.
If everyone’s bankrupt we’re all even right?
Stop using the word crisis. There are very few crises. The impact from US debt was and is not theoretical. There have been definitive and concrete effects from increased national debt.
Can’t be possible since we are still have billions to give away.
Only after those who had savings and repurposed to cover the debtors will everyone be even.
When you raise interest rates and cause costs to go up rather than down you have crossed the Rubicon.
Wow! The left wing Yahoo finally noticed the $33+ Trillion deficit!
“Only after those who had savings and repurposed to cover the debtors will everyone be even.”
See, now that is the true cause and effect in the end. We will have to give up all our private assets to cover this debt.
Hi.
“When you raise interest rates and cause costs to go up rather than down you have crossed the Rubicon.”
Brentwood 2 got us to the banks of the Rubicon. IMHO.
5.56mm
“It’s not yet a crisis,”
BS. It is already a crisis. In FY2023 we paid $800 billion in debt servicing costs alone. In 2024 it is projected to be $1.3 trillion. We only take in $2.2 trillion in income taxes. DOD’s budget is about $900 billion. Our budget deficits will only grow and increase the national debt and debt servicing costs. It is a fatal downward spiral.
Yes, but some of us won’t be morally bankrupt!
[When you raise interest rates and cause costs to go up rather than down you have crossed the Rubicon.]
Ssshhh! There’s people thrilled that their savings accounts pay more interest!
WHAT could possibly go wrong with the government having to pay more interest on the debt that they can’t afford?
[In FY2023 we paid $800 billion in debt servicing costs alone. In 2024 it is projected to be $1.3 trillion. We only take in $2.2 trillion in income taxes. DOD’s budget is about $900 billion. Our budget deficits will only grow and increase the national debt and debt servicing costs. It is a fatal downward spiral.]
You’re going to spoil the surprise!!
Bretton Woods collapsed because there wasn’t enough gold in a period of extensive low inflation growth.
Inflation in the 70’s was because of the oil shocks and labor having too much of the upper hand after we dominated world economic growth after WW2.
It’s ridiculous to think the Gold Standard was anything more than doomed to fail over the long run. It’s been FIFTY years since it collapsed.
And for all the Gold bugs out there, it’s not an inflation hedge or it would be around 10,000 an ounce now.
One solution: Confiscate all the wealth of those who die and pay off the debt with it. The offspring don’t need it. Bill Gates won’t give his kids any but I’m sure they’ll be taken care of. Will one refrain from building their empires? Perhaps, but how much does one need?
Before that were to happen socialism and welfare would have to be outlawed-that means illegal.
Not all wealth is liquid, your approach makes farmers have to hand over the family farm to the government to sell
Ya got me there. Can’t spread a farm around like you do money.
I call b.s. We’re not broke, we still have blank checks in our country’s checkbook and we have this wonderful invention at our disposal called a printing press! We can print as much money as we want!
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