If there is bad personal or corporate debt because declining wages, risky bets, whatever, the fed will simply bail them out with more printed money if it’s problematic.
The country isn’t trying to nor is it a good idea. That is only true for states, municipalities, corps, and people, but the country can never be out of “debt” or there would be no money in existence and we’d still owe the interest.
It’s a common fallacy that national debt must be repaid. That’s why the guy in the video I posted suggested calling it the national “debit”, not “debt”.
They can print to infinity. Once the BOJ owns all the stocks and essentially nationalized private industry, then it will have no choice but to toss money from helicopters in an effort to drive inflation higher. Then when that wears off, they will have to put guns to people’s heads to make them spend the free money.
They can’t fight automation and prices are heading to zero; infinite money will not change that.
I just listened to Peter Schiff’s latest where he’s predicting an embarrassing loss for Trump next election and I agree. The next pres will make Bernie look like Reagan
If you’ve been paying any attention at all to the policies of the Federal Reserve they can no longer print money ad infinitum where this year they’re actually unloading their balance sheet financially. The Federal Reserve is now boxed in a corner.
Umm no, a nation has to pay down its national debt otherwise it goes financially bankrupt.
The economic catastrophe that is coming will happen before the end of his term, mark my words for future prediction. Donald Trump is going to be the fall guy and bag holder when the whole house of cards comes crashing down.
What corner? The corner that they can’t raise rates because debt is too high for the gov to afford to make the interest payments? Well, the fed refunds the interest (minus operating fees) to the treasury so the gov essentially pays no interest. mises.org/library/cozy-relation … ry-and-fed
Yes, that’s the fallacy. Watch that series I posted. Read the comments.
I have vhs tapes of Jim Rogers and Peter Schiff from the 90s calling for meltdowns. I don’t think they have ever not called for a crash. I still like listen to them though
I’m a little new to Dent, but he seems much like Jim Willie and the rest of the doomsayers.
Schiff and Dent disagree on one thing: Dent says the dollar is going up (gold down) during the crash because that’s what happened in 2008, but Schiff disagrees saying the crash is going to take out the dollar too and that will make gold go up (since it’s “real money”).
Schiff doesn’t make sense because if the dollar goes down, every other currency has to go up and they’re in worse shape than the US.
Rate hikes, trade wars, debt out pacing GDP, government revenue crisis, deficits of all kinds, treasury bond crash, dollar devaluation, toxic derivatives, death of the petrol dollar, and divide between rich/poor in this country to which a widening amount of poverty will make it impossible for this debt ridden consumerist service economy to even function at all. In order to have a consumer service economy you need a large population with money or income to purchase goods and services which doesn’t much exist at all if a majority lives in poor land.
In other words, overall financial unsustainability.
One day they’ll be right also. I’ve been following economics since 2007 and a lot of us are surprised this shit show three ring circus has lasted this long but nothing has changed, the unsustainability of the system is the same (worse now)where it will inevitably collapse. The United States empire is terminally ill and is on life support, eventually somebody or something is going to pull the plug. Nothing will change this fact and no matter of political reform will stop this.
I personally look forward to this nation burning itself into the ground. This country needs a real revolution of change and many of the parasites that run it need to be executed.
Someday in the future forgotten men will have a public voice again and with that new found voice we will exterminate those responsible for our calamities or years of suffering hanging them on lamp posts. The forgotten man will rise out of the ashes when the collapses commences and his first word will be retribution.
We can always recalculate GDP In europe they added prostitution and drug use to the GDP lol. They monkey with GDP all the time and have it so tweaked now that the recession of 2002 never happened fred.stlouisfed.org/series/A191RL1Q225SBEA They pull those numbers from their ass.
What’s that?
Fed can buy more. Just think if Volcker could have bought bonds instead of having to jack rates up to the moon.
That would make US stocks go up.
Yes and as Richard Wolff pointed out, the wealth missing from the lower classes has been replaced with debt. In the 50s, a whole family could be supported by one man and they had little if any debt. Today both parents work and have credit card debt, mortgage, car loans, student debt. Ironically, that’s the fault of conservatives and their tax cuts
I’d like to see it crash n burn too, but it will happen when no one visits zerohedge anymore. When all the bears are gone, that’s the top.
The crash of 2000-03, everyone was asking what short selling is because no one had a clue. There were a few guys predicting it… Bill Bonner, Jim Puplava, Bill Fleckenstein and of course the perma bears Schiff, Rogers, Faber.
Manipulating statistics, information, and data will only get you so far. It does nothing in changing reality on the streets where a majority live. Government revenue crisis in when large segments of the population are so poor or low income that the government enters a crisis in that nobody can afford to pay taxes and have very little income to tax.
In europe they added prostitution and drug use to the GDP lol. They monkey with GDP all the time and have it so tweaked now that the recession of 2002 never happened