What Happens When The US Debt Reaches Critical Levels?

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ColdHouse
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Post by ColdHouse » Thu. May. 09, 2024 4:40 am


 
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BigBarney
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Post by BigBarney » Thu. May. 09, 2024 9:41 pm

US debt is going up by 1T every 90 days.. This is unsustainable...

Even our money is debt.. Look at your currency its a note not a

instrument of value.. like a silver certificate backed by assets...

Money and currency are not the same thing, money is wealth that

is stored in some device that cannot go to zero,currency fluctuates

with the market.Hard assets are true wealth that cannot be created

out of thin air..All of the previous currencies have failed in time..

BigBarney

 
ColdHouse
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Post by ColdHouse » Fri. May. 10, 2024 7:54 am

BigBarney wrote:
Thu. May. 09, 2024 9:41 pm
money is wealth that is stored in some device that cannot go to zero

BigBarney
While I agree with your intent, I don't think money is stored wealth.
And, I think everything can go below zero.
A person could own gold and then one day the Government could mandate that gold is hazardous and charge you to dispose of your gold. I am not saying that would ever happen, I am saying that it could. If you don't believe me just look what happened when everyone bought into the man made climate change hoax.

It could be argued that everything has value. But when those pulling the strings fine you or mandate this or that, things change.

In Bristol, Connecticut, the town I live in, they have a trash to energy generator. So all the collected rubbish is burned and energy is produced. People have to pay to have their garbage picked up. That is part of the taxes yet they use that garbage as fuel to make energy that they sell you. Imagine a free enterprise person decides that they will build a trash to energy plant and literally goes to town and picks up peoples garbage for free or even pays them for it. My guess is only certain entities can have a monopoly on certain things.

Probably one day when my solar panels are no longer useful they will probably fine me for having them or mandate I remove them and pay penalties.

I am no scientist but I know that a piece of property was sold on the Connecticut River and about 10 expensive homes were built on the property. They somehow were able to put in docks. My brother owned a piece of property right on the edge of that development down river. After the docks were put in, seaweed started to grow and took over all the shore down river. Very think can't walk in the water type seaweed.
Anyway, I would have to think that all that sun that was once hitting the earth and getting absorbed by the earth and is now getting absorbed by solar panels has to have an effect on things. Imagine a prairie in Wyoming that always had the wind gusting across it and then it became a windmill farm. My guess is those acres of wind driven turbines must have an impact on what was a natural course of wind.
My guess is it won't be too long and the government will tell the citizens that the people don't own the sun or the wind. People that are "stealing the electricity from the sun or the wind" must pay a tax or fee or acquire a permit to use the sun or wind....

There is a price for freedom.

 
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Post by nut » Fri. May. 10, 2024 9:28 am

If you believe MMT, since we can literally print money, rather than back it with gold, debt has to be thought of differently than running a household's finances. I don't know but it's sure seems to be working that way. When the US is no longer the big dog, that is when TSHTF. That and inflation. Our wealth is in the labor force and industry. And bombs. And infrastructure. All paid for by printing money.


 
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Post by franpipeman » Fri. May. 10, 2024 10:58 am

as long as oil and other commodities are priced and traded with dollars the deficit spending will continue when oil and other commodities are traded with other currencies then we will sink fast
.Those of us being borns shortly after the war lived the most prosperous era of all humanityfor the most part.

 
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Post by joeq » Fri. May. 10, 2024 4:52 pm

ColdHouse wrote:
Thu. May. 09, 2024 4:40 am
What is a "critical" level? It appears there is no bottom to our bottomless money pit. 50 yrs ago, I would've thought a trillion dollars was an unheard of number, and we couldn't possibly sustain life in the US. Here we are, over 30T, yet everything continues to operate, just at a higher rate. I believe it to be a fictitious number, and there isn't that much money in the world. The only thing that matters is who's holding all the eggs. And we all know currently, which country that is. And it's not here.

 
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Post by gaw » Fri. May. 10, 2024 4:55 pm

Oy vey!!! :o

 
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BigBarney
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Post by BigBarney » Fri. May. 10, 2024 5:17 pm

Metals of all types can never go to zero ,because you always have the

cost of extraction which cannot not be zero...

Bill to not have capital gains on REAL MONEY ...

https://click.ibg.moneymetals.com/Pages/ViewInBro ... jQ&sysid=1

Real money is not debt but a valuable asset...Fiat money and currency

can all go to zero,Look at Argentina over the last decades..

BigBarney


 
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Richard S.
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Post by Richard S. » Fri. May. 10, 2024 7:36 pm

joeq wrote:
Fri. May. 10, 2024 4:52 pm
What is a "critical" level?
The numbers being cited are as percent of the GPD which is probably the best number to use because becsue you are setting the debt relative to the economy. It was 120% at the end of WW2, it declined into the 70's to about 30% and then began accelerating in the early 80's. There was modest decline in the 90's as Clinton rode the .com bubble, note the total debt still increased. It's currently over 120%, above WW2 levels.

I can't tell you what the critical level is but we can't continue down this path. The US dollar has value because people have faith in it's value worldwide. We need to stop spending so much and the economy needs to accelerate to rectify it.

 
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Richard S.
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Post by Richard S. » Fri. May. 10, 2024 7:40 pm

BigBarney wrote:
Fri. May. 10, 2024 5:17 pm
Metals of all types can never go to zero ,because you always have the
You can make gold in particle accelerator but the cost for the energy and the machine is non starter. This will change in the future, might be hundreds of years from now but gold will have no more value than dirt.

 
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Post by anthony7812 » Fri. May. 10, 2024 8:29 pm

The relief spending has to drastically decrease. Until the majority of media catches on to this and the average person understands the government is no different than your homes income to debt level, nothing will change. Cutting spending on programs and aid means votes lost to a particular party…. Yes I said it. Covid killed us economically. So much debt service increases that haven’t yet cleared the rear view

 
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Post by k-2 » Fri. May. 10, 2024 11:25 pm

The govt will continue to spend,print and borrow and continue to devalue the dollar. A dollar is only worth 10c of what it was in 1970 and one half of 1c of what it was in 1930. Thats the only way they can reduce the debt is to reduce the value of that debt. Owning appreciating asset is somewhat of a hedge although as the Govt has already shown us they can and will seize investors homes and mandate they provide free rent for years on end with no compensation and they have seized gold in the past. Cant trust our own Govt.

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