Matt Collins
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Interest payments on the debt is the next big crisis
- Thread starter Madison320
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Madison320
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Interest on the debt just passed defense spending.
https://www.usdebtclock.org/
Remember all the "experts", like Janet Yellen, who said interest on the debt wasn't a problem because interest rates are so low?
Of course it's actually the opposite. If rates were historically high and the interest payments were affordable then we wouldn't need to worry. But when rates are at all time historical lows you don't assume they can't ever go up. Unless you're an idiot or a liar.
https://www.usdebtclock.org/
Remember all the "experts", like Janet Yellen, who said interest on the debt wasn't a problem because interest rates are so low?
Of course it's actually the opposite. If rates were historically high and the interest payments were affordable then we wouldn't need to worry. But when rates are at all time historical lows you don't assume they can't ever go up. Unless you're an idiot or a liar.
acptulsa
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Don't underestimate Janet Yellen. She's fully capable of being both at the same time.
Invisible Man
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Notably, the year within that timeframe in which the most debt was added was 2020 itself.
Madison320
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That's something not factored into the lockdown. Debt is cumulative. How much damage will be caused by carrying all that additional debt into the future? How many lives lost?
Madison320
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It might not be a bad thing if harris wins because we're probably going to get another surge of price inflation even worse than the last one under biden. My guess is when we finally get hyperinflation (or at least really high inflation) we're going to veer in the opposite direction of whoever's in charge. So if trump is in charge we may elect a hard core socialist. If harris is president we may go towards free markets.
The downside of harris is the supreme court and the fact that if the stuff really hits the fan her impulse is going to be more government. At least there's a chance trump might do the right thing.
The downside of harris is the supreme court and the fact that if the stuff really hits the fan her impulse is going to be more government. At least there's a chance trump might do the right thing.
Matt Collins
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Kind, of, maybe.... Trump will absolutely be better for the economy, there is no doubt about that. But keep in mind some of his policies are anti-free market too (think tariffs and spending). Will he do anything to curb spending and inflation? No, probably not. Maybe, but I wouldn't bet any money on it. Pretty much everything Kamala will do will be harmful to the economy. And with history, when hyperinflation happens, authoritarianism is usually the result and that can be both left and right leaning, whatever that means. Hopefully it doesn't happen but we very well may be past the point of no return.
acptulsa
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Huh, ya think? They're trying to sell themselves as something they're not.
Trump ran a bigger deficit than Biden, had to print more money to do it, and therefore bears more responsibility for this inflation than Biden. It's a simple fact
Madison320
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That's true, and I'm always saying trump was a bad president because of that but biden would've spent the same if covid hit when he was president. They both suck but I think there's a better chance that trump would do the right thing if we got hyperinflation. I think biden/harris first move would be price controls. I don't see trump doing that.
acptulsa
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Which fox will eat fewer of our chickens if we put him in charge of our henhouse?
I'm so sick of the Uniparty.
Madison320
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I agree. The "good" news is change is coming, no matter what. We're getting close to the end game, which is a currency collapse.
Invisible Man
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If something can't go on forever, it will stop.
Madison320
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And that's the point of this thread. In my opinion the interest on the debt becoming unaffordable is the ultimate thing that stops us from continuing to borrow and print.
Madison320
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US federal debt just hit 36 trillion. Interest payments on the debt are now over 1 trillion and 20% of tax revenue.
Madison320
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I just wanted to put this prediction out there in writing.
In another month Swordsmith will quit caring about the debt and TheCount will start caring about it.
In another month Swordsmith will quit caring about the debt and TheCount will start caring about it.
Gold up 20 percent , inflation 4 percent , mortgage rates over 4 percent 2 1/4 lb pot roast 33.60 ( currently about 30 and 8.00 pre bidenflation). My predictions
Madison320
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I think at least 30%.
I think Musk really wants to cut spending but he has no power. The only way I see them cutting spending is if Trump vetoes the spending bills and call out the republicans who voted for the spending increases. And I don't see that happening. At least not until price inflation is sky high and we're in a dollar crisis and he has no choice.
Matt Collins
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Elon has power... he has a huge microphone and nearly infinite money to throw around. While he may not be an elected official, he can absolutely lean on the elected officials to do his will. If he is willing to exercise that leverage that is of course.
