At a GDP (after the corona depression) of 17 trillion, America will face a 200% debt to GDP ratio and will have to pay 40% of its federal income in interest once the Fed fights hyperinflation by increasing interest rates.
Nice prospects.
At a GDP (after the corona depression) of 17 trillion, America will face a 200% debt to GDP ratio and will have to pay 40% of its federal income in interest once the Fed fights hyperinflation by increasing interest rates.
Nice prospects.
Other urls found in this thread:
No. Treasuries are fixed rate, and currently sitting at 0.7% for the 10Y.
>and currently sitting at 0.7% for the 10Y.
America has one of the shortest refunding cycles in the world at just below 4 years.
Or in other words, America cycles through ALL its debt within 4years. All newly issued debt (to repay old debt) will be at higher interests.
America is at the brink of the biggest crisis in its history, and it is only starting.
Whatever man we're just gonna print that shit.
minsky moment incoming
Debt that can't be paid, won't be paid.
Plan accordingly.
>hurrr a one time payment of $1,300 to everyone is BREAKING US
>Durrr unibersul incum could giv us all $1000 a month and it would be fine :)
>a one time payment of $1,300 to everyone is BREAKING US
Yeah, if all the bailouts for coronachan are put together, you could give every US household 100k.
IMPEACH everyone who gave shekels to corperations
>he doesn't understand we export our inflation via the petro dollar and he'll actually be paying for it
Yeah, that's why the petro dollar is so coveted. Glad I get to be the first to inform you.
To who is this debt owed to?
This! Billionaires received the biggest portion of gibs
Fed will liquidate the equity they bought in the market in less than 2 years and probably make a profit, just like they did in 08
Saying the USA is in denbts doesn't make our massive military go away, for all intents and purposes if we wanted to we could just lol and abolish all our debts and dare anyone (chinks) to do anything about it.
Good thing the debt is in USD. Just mint 35 trillion dollar coins and pay it off.
kek imagine being this retarded
to the Federal Reserve. They print the money and loan it to banks at interest.
I’ve been thinking about this. The Fed will be forced to raise rates when inflation commences. Or if the stock market makes new highs and they are accused of making a bubble.
I want others thoughts on when rates could rise... could people simply begin to dump bonds and great a snowball?
>Just mint 35 trillion dollar coins and pay it off.
So that won’t put hyperinflation on the cards
The Fed has been Quantitative Easing for over a decade and there hasn't been any inflation. Economics is broken so whats another 35 trillion to the monetary supply?
Exactly. If capital formation is destroyed then the equation balances out. But if real inflation comes .... I’m guessing supply side shortages .... then they will be forced to raise the rates
Whom'stve*
Well, if it’s not adding to inflation... then do it
I hope somebody gives us a hard time about denbtz so we can threaten them with our military and then use that standoff to excuse ourselves out of a massive amount of the payment
Put these three things together and what do you get? With a normal establishment president that's a recipe for a nasty world war.. will Trump be any different?
> could
>it's happening
kek imagine doing math
>once the Fed fights hyperinflation
THE HYPERINFLATION IT IS COMING you guys have bees saying that for decades
Fuck off.
>there hasn't been any inflation
They say the same thing here, still everything have become much more expensive.
Owe to who? If we don't pay it then what? We are shit canning the Federal Reserve and going back on Gold backed dollars. All debt will be zeroed out.
chink debt is like 5% of national debt, probably less. the biggest creditor to america are it's citizens, via the social security fund.
It's not broken, we just export inflation via the petro dollar. Wonder if the world will ever figure this out.
>If we don't pay it then what?
Nothing, just bankruptcy and stuff.
this. its what you retards don't understand. we literally offload our inflation on the yuropoors through trade. lol.
Money is fiat and also debt. Any debt is owed to someone.
Who collects this debt and if currency itself is fiat then what are they going to collect?
Will they collect their no dollars?
If the medium of exchange then becomes bloodshed then which country will be the first to invade the one with more guns than people?
>You have abused borrowing money too much so now we can no longer credit you and also all your debts are forgiven.
Oh no, guess we'll just have to become self sufficient like we always wanted to be. How will you ever survive?
We'll sue for damages!
youtube.com
>Yeah, that's why the petro dollar is so coveted
Yes, i heard oil is doing just fine at the moment
You know a war would just immediately cancel that debt. You can't owe your enemy.
Holy shit US debt has almost doubled under Trump. Best economic president ever my ass.
you're a zoomer. stop posting
>meanwhile in reality
petro dollar has been irrelevant since german rates went negative.
The problem with that is the government owes most of it's money to us the citizens.
Meaning companies with contracts and individuals with bonds will be fucked.
Not hasn't, it literally did under Obooboo.
They'll just print some, no problem
God I can't wait for this shitty country to collapse. I will swear allegiance to whatever entity serves the interest of white men in the crumbling ruins.
Say the fag who can't into US treasury bonds. I like to be able to buy them with 4% interest but sadly they don't exist.
Learn macro econ fag. Your numbers are all made up. Evan if they issued 50 Trillion in debt, almost 2/3rd's of that is just rebaught by the fed right after issuance. The issuance of debt is just to create more assets with which to allow banks to use as caladeral to keep the credit markets liquid.
Poor EU fags will always be poor.
lmao
clean up on aisle 2
>The problem with that is the government owes most of it's money to us the citizens.
Why do you use separate terms for the same thing?
>Meaning companies with contracts and individuals with bonds will be fucked.
So what you're saying is that everyone plundering us in the first place is gonna get screwed? Sounds great actually.
Trashing the currency is a form of debt jubilee
*tapping on spreadsheet with jewish finger* look at this ledger goy! what a mess!! it'll take ya foreva to pay this byack!!
lol idc it's meaningless kike bullshit who cares, gas 'em.
they will, but there will be a problem eventually
The rest of the world would decide our money is worthless and our military would disappear overnight.
haha money printer go brrrr
You dont get it. Theres a point where debt binds become worthless. So if china or other countries holding huge amount of us debt bonds begin to dump. Its a cascade effect. Wanna know why the wall isnt really built. Mexico owns 320billion of US debt. China owns almost 2 trillion. If they start dumping. The dolar becomes more worthless fast and they default and are granted no new credit. The fed isnt just simply printing money.the fed is a private bank writting you loans. When the cash cow usa becomes so emaciated they leave for a new host. But leaves america a 3rd world country overnight.
China only has 1 trillion of debt and at 1 point they dumped about 300 billion to rescue their stock market. There's still a lot of demand for us debt out there. Worst case scenario the fed buys it. The relationship with mexico is a bit complicated. It's more we want good relations with them than them owning our debt. The left also needs new voters so they block all attempts at the wall.
Trump has been reducing debt since he took over. It was probably 50 trillion after the obama disaster. Trump took over a recession and got us the biggest economic boom we've ever seen