US National Debt Thread

Thomas More said:
The problem with raising inflation to shrink the relatuve value of the debt is that it drives up interest rates, leading to an even faster growing debt. They're well into vicious circle territory.

I expect prices to at least double over the next five years, but I think at the end of that the debt will be an even bigger problem than now.
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It could be. The game the "elites" are playing for sure is hoping that they can get the AI and robot labor to increase productivity. What's funny is that this is deflationary, as things should be, but something they always claim to hate ...

If you are interested in that topic, Jeff Booth is a must read and listen.
 
Australia Sucks said:
When a fiat currency dies it often ends in some sort of revolution or civil war etc. Although not always. Venezuela managed to avoid that fate for now. We will see what happens to western countries when their currencies eventually implode.
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The silver lining in all of this is that if you see the game unfolding as it is, and can do something about it, you can take advantage of the game that the elites/rich are playing. This is what stupefies me about a lot of the older posters and their general anti-BTC and positions against disruptive technologies. Understanding what these are can majorly elevate you in that system that is "imploding."
 
Samseau said:
Friendly reminder that debt does not necessarily have to end in collapse. This is because all debt is owed to someone or some corporate entity;

Either find the person it's owed to, and arrest that person and force them to repudiate the debt, or dissolve the corporation the debt is owed to.

Naturally, whoever was supposed to collect on the debt gets absolutely destroyed, but it's a small price to pay to save a nation. I learned about this method from a priest of mine (now retired), who explained that in the Middle Ages, sometimes, when a King owed a lot of money, usually they just killed the bankers and got a fresh start. So this method should work.
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African countries never pay their debts nor are they concerned about paying them
 
GoodShepherd said:
African countries never pay their debts nor are they concerned about paying them
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I was always curious about that. When a country like Zimbabwe prints out a few trillion dollars and devalues their currency, what exactly happens with the hyperinflation and people starving in the streets en masse?

Like if the USA treasury were to print out 40 trillion dollars overnight and tomorrow a loaf of bread costs 1 billion dollars, then what?

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From Wikipedia

Food output fell 45%, and manufacturing output fell by 29% in 2005, 26% in 2006 and 28% in 2007. Unemployment rose to 80%. Life expectancy dropped. Much of the nation's middle class fled the country en masse taking much of the nation's capital.
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eradicator said:
I was always curious about that. When a country like Zimbabwe prints out a few trillion dollars and devalues their currency, what exactly happens with the hyperinflation and people starving in the streets en masse?

Like if the USA treasury were to print out 40 trillion dollars overnight and tomorrow a loaf of bread costs 1 billion dollars, then what?
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The Zimbabwe thing was different there were sanctions, Im talking about the rest of Africa, so In Zim they have like 95% unemployment, no they not starving most of them are here in South Africa working or in other countries or they stayed in Zim doing farming or homesteadying etc, there are apparently still some rich people there who own assets but they cant sell it for anything of value so they just stayed there and continue living, I think they use the US dollar there now?

African countries dont pay their foreign debts or even their local debts yet somehow they still get by somehow
 
GoodShepherd said:
The Zimbabwe thing was different there were sanctions, Im talking about the rest of Africa, so In Zim they have like 95% unemployment, no they not starving most of them are here in South Africa working or in other countries or they stayed in Zim doing farming or homesteadying etc, there are apparently still some rich people there who own assets but they cant sell it for anything of value so they just stayed there and continue living, I think they use the US dollar there now?

African countries dont pay their foreign debts or even their local debts yet somehow they still get by somehow
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I would not call that getting by . Massive uncertainty in day to day life, corruption on a local and national/regional scale, average life down drops massively, most of the middle class flees
 
eradicator said:
I was always curious about that. When a country like Zimbabwe prints out a few trillion dollars and devalues their currency, what exactly happens with the hyperinflation and people starving in the streets en masse?

Like if the USA treasury were to print out 40 trillion dollars overnight and tomorrow a loaf of bread costs 1 billion dollars, then what?

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From Wikipedia



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The U.S. and EU are different. Many third world countries have many of their loans denominated in foreign currencies (U.S dollars or Euros or Yuan, etc) so they can’t even print their way out of debt they have to default.
 
Australia Sucks said:
The U.S. and EU are different. Many third world countries have many of their loans denominated in foreign currencies (U.S dollars or Euros or Yuan, etc) so they can’t even print their way out of debt they have to default.
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Yes, this is a deep dive, but basically he's referencing the EuroDollar system and if you are somewhat interested, the dollar milkshake theory puts some of the pieces together. Brent Johnson talks about this idea, which others have proffered, but he is more famous for on the internet in the last 6 years. I don't necessarily agree with him on how this ends, but otherwise we do see the same things happening until the end, which will be tumultuous.
 
The national debt is up to $35 trillion now, another trillion since Jan. 15, when they hit $34 trillion. The previous two trillions were run up in just 100 days each, but this one has taken 200 days.

I think the government collects more revenue around tax time in April, so perhaps that leads to slower borrowing in the early part of the year. We'll see if borrowing picks up during the rest of this year.

How many days to run up another $trillion in debt? 100? 150? I'd say 200 days is the maximum time we will see before the $36 trillion mark.
 
Thomas More said:
The national debt is up to $35 trillion now, another trillion since Jan. 15, when they hit $34 trillion. The previous two trillions were run up in just 100 days each, but this one has taken 200 days.

I think the government collects more revenue around tax time in April, so perhaps that leads to slower borrowing in the early part of the year. We'll see if borrowing picks up during the rest of this year.

How many days to run up another $trillion in debt? 100? 150? I'd say 200 days is the maximum time we will see before the $36 trillion mark.
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Could also be "clever accounting" to delay the debt hitting the books until the election is over. Watch the debt suddenly jump $2 trillion next year. Wouldn't surprise me at all.
 
Samseau said:
Could also be "clever accounting" to delay the debt hitting the books until the election is over. Watch the debt suddenly jump $2 trillion next year. Wouldn't surprise me at all.
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I think clever accounting is exactly how how they made it take so long to blow through the last $trillion. They're making up for lost time now.

The national debt clock shows it's now $35.13 trillion. Another $133 billion in 7 days! At this rate, it will only be 55 days from $35 to $36 trillion!
 
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