฿ Donate using Bitcoin! 1LYHyG1WiJsKvxf1p4CA5ApNrniCE26Hns Ξ Donate using Ethereum! 0x6E225E2D29BEB9533Fd36C467981Ea15b8714C24 P Donate using PayPal! paypal.me/mamastinky
Skip to main content
OpenID

News

  • Anyone having problems using the site - please send an email to admin@silverstocker.com with a description of your issue.
  • Please use quoting (or at least make references) in responses so people can understand what comments or charts you are responding to!
  • Newly registered members - If you cannot log in, check your email to activate your account!
  • NEW! Donate using Paypal @ paypal.me/mamastinky

Topic: Here Comes The Debt Tsunami (Read 146 times) previous topic - next topic

0 Members and 1 Guest are viewing this topic.
  • ken 
  • [*][*][*][*][*]
  • Global Moderator
Here Comes The Debt Tsunami

  • edthelorax
  • [*][*][*][*][*]
  • Administrator
Re: Here Comes The Debt Tsunami
Reply #1
Maybe a tax cut will help
For Entertainment Purposes Only.

  • ken 
  • [*][*][*][*][*]
  • Global Moderator
Re: Here Comes The Debt Tsunami
Reply #2
Maybe a tax cut will help
Ha! Stop spending would but that cuts the reelection chances of the parasite class. 

Re: Here Comes The Debt Tsunami
Reply #3
This thread is hitting at the core of our fiscal problem hat is exacerbated by fed policy. Currently we are, as a nation, consuming more wealth than we are generating. The end result of course is standard of living contracts, unless debt makes up the wealth deficit, but that only makes the problem worse later in time. That is exactly what is going on in governments and in the family home. A second bad outcome is wealth is consumed faster than it is created via profitable ventures and wealth invested in profitable ventures is what creates more wealth. In summary, we are consuming the wealth that provides our standard of living and we are making it harder to turn the situation around by consuming the wealth needed to repair the situation.

Reducing taxes noticeably helped when implemented by Kennedy, Reagan, and Clinton and will likely make things better for families and businesses this time as well. but for governments I doubt things will get better because this time the major entry on the balance sheet is debt and debt is the major drag on the economy. In my opinion, it would be better to address debt via reduced spending. Government spending is nearly 100% consumption that is 100% guaranteed to consume needed wealth. Reducing government spend will cut consumption shifting the ratio of consumption to investment favorably to possibly cure the economy, if we have not gone down the road too far already. Cutting spending is never popular, but it is necessary.

Case in point, after WW! the country was mired in debt and recession. The fed raised rates and the statesmen politicians of the federal government cut spending by about 25%. Result, in less than two years the roaring twenties commenced. We have no statesmen for politicians, so we will not have politicians putting the interest of the country ahead of their need for re-election. Since WWII, self has been promoted over sacrifice. We are reaping the rewards.

  • ken 
  • [*][*][*][*][*]
  • Global Moderator
Re: Here Comes The Debt Tsunami
Reply #4
This thread is hitting at the core of our fiscal problem hat is exacerbated by fed policy. Currently we are, as a nation, consuming more wealth than we are generating. The end result of course is standard of living contracts, unless debt makes up the wealth deficit, but that only makes the problem worse later in time. That is exactly what is going on in governments and in the family home. A second bad outcome is wealth is consumed faster than it is created via profitable ventures and wealth invested in profitable ventures is what creates more wealth. In summary, we are consuming the wealth that provides our standard of living and we are making it harder to turn the situation around by consuming the wealth needed to repair the situation.

Reducing taxes noticeably helped when implemented by Kennedy, Reagan, and Clinton and will likely make things better for families and businesses this time as well. but for governments I doubt things will get better because this time the major entry on the balance sheet is debt and debt is the major drag on the economy. In my opinion, it would be better to address debt via reduced spending. Government spending is nearly 100% consumption that is 100% guaranteed to consume needed wealth. Reducing government spend will cut consumption shifting the ratio of consumption to investment favorably to possibly cure the economy, if we have not gone down the road too far already. Cutting spending is never popular, but it is necessary.

Case in point, after WW! the country was mired in debt and recession. The fed raised rates and the statesmen politicians of the federal government cut spending by about 25%. Result, in less than two years the roaring twenties commenced. We have no statesmen for politicians, so we will not have politicians putting the interest of the country ahead of their need for re-election. Since WWII, self has been promoted over sacrifice. We are reaping the rewards.

  • ken 
  • [*][*][*][*][*]
  • Global Moderator
Re: Here Comes The Debt Tsunami
Reply #5
When nations collapse, such as ours, there will be a tsunami of death. I hope it will not be the people who once again suffer at the hands of the psychopaths they elected, but the psychos that caused this unnecessary shit storm to come.  

Re: Here Comes The Debt Tsunami
Reply #6
The bump in inflation news coupled with reduced consumer spending this morning was not as expected by economists and the result is a sell off in bonds and stocks. In the early 80's, Volker raised rates, but not of his volition, he was led (better word might be forced) by increasing rates in the market that followed disastrous Nixon and Carter policies. Rates went up because dollar purchasing power was declining and investors wanted compensation in the form of higher rent on their wealth. It looks like the same situation is gaining a foothold now. This data does not set a trend with a single report, but coupled with a very nervous markets and the past malfeasance by the fed and federal government, rising inflation with investors demanding compensation is almost certainty, no matter what the fed desires. 

For common folks, store your wealth in something other than dollar denominated assets as the money printed by the fed, stealing its wealth from existing dollars, is about to be realized by everyone. In short, the fed has lost control, the manipulators have lost their influence and true price discovery is about to dominate.

  • Erich
  • [*][*][*][*]
Re: Here Comes The Debt Tsunami
Reply #7
Good head fake this morning then it was off to the races. Miners up with conviction. Way to early to say this times different
but I am very long now. Paas Hl and less cash.
ER

Re: Here Comes The Debt Tsunami
Reply #8
What the Judge says in his opinion piece is spot on except he has missed the mark on the interest paid on the continuously rolled over WW1 debt. His estimate of 40% of tax revenue going to debt service is only going up via market forces. Because government cannot find buyers for its new debt plus the roll over debt at its fixed near zero interest rate, the fed stepped in with QE to buy its debt directly with printed money, money that has no wealth attached to it other than what is stolen from legacy dollars. There is a time lag, but now the lag is over and lenders are demanding more rent on their lent dollars to compensate for lost purchasing power. You can bet the fed will step in with another QE program, but it will only exacerbate the problem as the realization of the first $3.5 trillion is coming into maturation. The Ponzie is now common knowledge. the commentary is a good read:

http://www.foxnews.com/opinion/2018/02/15/judge-andrew-napolitano-trump-s-new-budget-is-debt-bomb-waiting-to-explode.html

  • ken 
  • [*][*][*][*][*]
  • Global Moderator
Re: Here Comes The Debt Tsunami
Reply #9
What the Judge says in his opinion piece is spot on except he has missed the mark on the interest paid on the continuously rolled over WW1 debt. His estimate of 40% of tax revenue going to debt service is only going up via market forces. Because government cannot find buyers for its new debt plus the roll over debt at its fixed near zero interest rate, the fed stepped in with QE to buy its debt directly with printed money, money that has no wealth attached to it other than what is stolen from legacy dollars. There is a time lag, but now the lag is over and lenders are demanding more rent on their lent dollars to compensate for lost purchasing power. You can bet the fed will step in with another QE program, but it will only exacerbate the problem as the realization of the first $3.5 trillion is coming into maturation. The Ponzie is now common knowledge. the commentary is a good read:

http://www.foxnews.com/opinion/2018/02/15/judge-andrew-napolitano-trump-s-new-budget-is-debt-bomb-waiting-to-explode.html
Trump is no economist. He is good at reorganizations. He should put his talents to work. But what's the point if they just start to play the borrow game again since it never ever gets paid back? No government pays off its deficits.

Re: Here Comes The Debt Tsunami
Reply #10
Here is a piece on a different wrinkle in the debt bubble fiasco I had not considered, primarily because I was not aware if the pervasive nature of the annuity business model. I cannot see how the US and world get though the next few years without some real bad things happening. PM's, a small farm and means to protect are the best investments but they may not be enough and timing is uncertain but near.

http://market-ticker.org/akcs-www?post=233378

  • ken 
  • [*][*][*][*][*]
  • Global Moderator
Re: Here Comes The Debt Tsunami
Reply #11
Not to mention pensions...