Four years ago a TRILLION dollar annual deficit was unthinkable. We’ve run four in a row with a max of about $1.4 TRILLION, all under OBastard’s watch.
How could we be deleveraging (ie, paying back debt) when we are accumulating debt at an all-time record pace? Smell like BS to me.
Maybe it’s the private sector deleveraging in anticipation of collapse. However, with the coming massive inflation, you want as much debt as you can service reliably — pay it off in fake Obama Bucks.
Spending ones way out of debt is like screwing ones way out of having AIDS
“you want as much debt as you can service reliably — pay it off in fake Obama Bucks.”
That is assuming that in a wildy inflationary period, businesses and governmental employers will increase the wages of their workers so that a lowly social worker or some janitor will get a million dollars a week that will just cover expenses that 600 dollars a week used to cover.(ala Germany in the late 20’s, except that our wheel barrows full of cash will be electronic debit cards).
I think they’ll try instead to keep wages low inspite of inflation or they’ll just go out of business and more massive unemployment will pile up. One’s unpayable debts may be used as an excuse to enslave and take away the freedoms of the the populace. Prices for durable goods and electronic trinkets and toys will drop because no one is buying them while food and fuel prices will go beyond atmospheric in scale. Gold and silver won’t be enough to buy food and fuel.
Some folks may think that the biggest assests will be the food,fuel, and guns they have squirreled away; yet I think the most priceless assets anyone will be fortunate to possess will be trusted frieds, family, and allies! Good people will need to be able to secure relationships with other good people in order to survive what is coming, even if there will be little at first that can be shared in common between them. Our love for one another has grown cold; can it ever be reignited again?
I think the article is about personal debt hence people not consuming as much is slowing the economy.
But still.. if your currency is going to the pot what is the good news about personal savings?
“However, with the coming massive inflation, you want as much debt as you can service reliably”
I live my life just the opposite!!!
Everything I have ever bought in my life has been for cash except for my first home that has been free and clear for 25 years.