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Old 09-15-2019, 09:41 AM
 
5,860 posts, read 2,167,406 times
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I'm not, and never have been, a permabear, a gold bug nor a Fed hater. But I have to say this report that world debt is now at $250 Trillion is sobering:

The $250 Trillion Debt Problem

This quote got my attention: "The sustainability of debt burdens depends on interest rates remaining low and global trade remaining open" I'll just say I wish we had leadership in Washington that's a little more reserved and stable.

It seems we are perched on a teetering knife edge. One small misstep and down we go.
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Old 09-15-2019, 12:27 PM
 
Location: western East Roman Empire
6,761 posts, read 10,839,422 times
Reputation: 6075
Quote:
Originally Posted by Elliott_CA View Post
I'm not, and never have been, a permabear, a gold bug nor a Fed hater. But I have to say this report that world debt is now at $250 Trillion is sobering:

The $250 Trillion Debt Problem

This quote got my attention: "The sustainability of debt burdens depends on interest rates remaining low and global trade remaining open" I'll just say I wish we had leadership in Washington that's a little more reserved and stable.

It seems we are perched on a teetering knife edge. One small misstep and down we go.
The debt itself isn't a problem. The problem is that the money supply is tainted and inefficient.

If we ask questions from that perspective, the underlying structural problems of the real economy may become clearer and so also a clearer path to solutions.

Yes, you are right though, lack of leadership and lack of vision, focusing instead on their own special-interest power groups who don't really care about the nation-state as a whole.

And they brand anyone who calls attention to the underlying structural problems of the real economy as racist or populist or whatever epithet to obfuscate their own agendas.
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Old 09-15-2019, 12:30 PM
 
4,384 posts, read 1,764,398 times
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"...teetering knife edge..."
maybe the back of the knife (spine), not the other side.
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Old 09-15-2019, 02:51 PM
 
2,625 posts, read 1,512,752 times
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It's all Fiat and will be repaid with new fiat.

The bigger problem is growth.
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Old 09-15-2019, 04:28 PM
 
Location: Metro Detroit, Michigan
13,034 posts, read 14,257,113 times
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Yes, the world economy was set up like domino to fall. It's just a matter of when it will happen, and how deep and protracted the fall will be. The trouble is, the fed has nothing in the tank to power the economy out of the next recession. So this time, it will be up to the people, and not the money changers, to build something that works. USA is one of the few countries that has a little bit of everything required to make that happen.
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Old 09-15-2019, 06:15 PM
 
8,652 posts, read 9,352,576 times
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Quote:
Originally Posted by andywire View Post
Yes, the world economy was set up like domino to fall. It's just a matter of when it will happen, and how deep and protracted the fall will be. The trouble is, the fed has nothing in the tank to power the economy out of the next recession. So this time, it will be up to the people, and not the money changers, to build something that works. USA is one of the few countries that has a little bit of everything required to make that happen.
Your thesis is simply incorrect. The Fed. has several powerful tools it can use at any time - rrr, discount window operations, a round or two of QE, money supply controls further the Treasury Dept. could move to strengthen or weaken the $.
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Old 09-15-2019, 06:18 PM
 
8,652 posts, read 9,352,576 times
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Quote:
Originally Posted by aridon View Post
It's all Fiat and will be repaid with new fiat.

The bigger problem is growth.
That's really the issue - growth. Across The US fewer and fewer adults are net contributors to the economy.
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Old 09-15-2019, 06:45 PM
 
21,729 posts, read 14,409,788 times
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Quote:
Originally Posted by aridon View Post
It's all Fiat and will be repaid with new fiat.

The bigger problem is growth.
Ding, ding, ding! We have a winner!

Debt isn't usually a problem for governments, households or whoever; long as there is economic growth debts can be repaid/managed. Problems start when growth is small or nil, then you start to see problems as revenue must be found to service said debts.

Right now in Europe, North America, China and elsewhere economies and growth are slowing. We're not back to recent memory of "fiscal crisis" levels just yet, but never the the less feels like world economies are sitting on a powder keg.
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Old 09-15-2019, 07:26 PM
 
Location: S.W. Florida
2,310 posts, read 998,539 times
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Just as individuals cannot continue to spend more than they make, neither can governments. At some point in the cycle, debt is simply no longer sustainable and the inevitable day of reckoning comes.

Without getting too far along the political path, here in the U.S. the last time we had a budget surplus was in 2001. So for nearly two decades we have been running in the RED. We know a collapse of some magnitude is coming. The question we must ask ourselves is what will our personal response be prior to it?
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Old 09-15-2019, 07:36 PM
 
26,587 posts, read 29,002,987 times
Reputation: 25602
Quote:
Originally Posted by Elliott_CA View Post
I'm not, and never have been, a permabear, a gold bug nor a Fed hater. But I have to say this report that world debt is now at $250 Trillion is sobering:

The $250 Trillion Debt Problem

This quote got my attention: "The sustainability of debt burdens depends on interest rates remaining low and global trade remaining open" I'll just say I wish we had leadership in Washington that's a little more reserved and stable.

It seems we are perched on a teetering knife edge. One small misstep and down we go.
The global financial system is based on debt. Money is created as a form of debt. We shouldn't be surprised. The global banking cartel has a lot more power than politicians do.
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