What will the national debt look like by the end of fiscal year 2024? $1.8 trillion is a conservative estimate, especially if the economy continues to worsen.
Those who talk about solutions to the problem, do not understand the system or the problem.
Money is borrowed into existence......at interest. The interest is not borrowed into existence, so there is always more debt AND interest than there is money in existence.
People talk about the Fed raising rates to "fight inflation." Hell, the Fed is raising rate to generate more inflation. They need the inflation. They love the inflation. Has inflation gone down, since they started raising rates on the biggest mountain of debt the world has ever seen? Hell no! Look at the increase in debt since they started raising rates. The world is awash in debt. Raise the cost of debt, and you raise the price on everything.
You are not going to get these people running this shit show to act responsibly. We passed any hope of that a couple of decades ago.
The way out will probably be war as it so often sadly is. The inflation dynamics will put stress on regular Americans. That will likely cause domestic strife as the usual methods of containment continue to fail. An external threat prevents the country coming apart at the seams by channeling the stress outward.
We will do better in America than most of the rest of the world as the old western global financial order collapses.We will do better because we have a powerful political order to back us up politically & financially When Washington goes down.
America has the Sovereign Federated States of the American Republic!
States that are semi Autonomous Nations in themselves that are capable of picking up the slack together!
North America is the last Commodities Rich area of it's size unclaimed by the BRICS.
The financial future will once more be dependent upon economies based upon commodities!
The only way the Western European nations like Britain rose to great power was thru their colonial empires!.The Empires are now independent nations no longer being bled of their resources. Bled by the small western European Nations divested of their overseas empires
The FED has lost control of the bond market because it has lost it's credibility. The end game was always going to be "brrrrrrrrr". It's all down hill for the US dollar now. Higher interest rates will act like "air brakes" on a diving jet. It keeps it in the air a little bit longer but at the expense of what keeps it in the air!
Deficits happen when foolish politicians decide to spend beyond the taxes they collect. If they decided to disappoint their constituents and spend far less and not borrow they could pay interest and principle out of tax revenue for decades and wipe out the debt. They won't do it because spending without limit is more fun than austerity and walking the straight and narrow. Got gold or Silver?
It would take spending elimination of 80 to 95 percent to pay interest and some principle each year from tax revenue. This would have to continue for decades.
A financial collapse may spare the country of the pain of the political collapse.The political collapse that will happen at the same time.Both will force The Federated states to take over by default!
Take charge and begin to rebuild! Let the corrupt Federal Government in Washington revert back to it's original Constitutional mandate!
As far as Social Security spending goes. I understand that it was enacted when the stock market was very shaky but I can't help wondering why somewhere along the way congress didn't allow some portion of it to be placed in equities. T-bills alone have not kept up with the economy.
Certainly a possibility, if it's as dire as you imagine. I am however an optimist long term and the history of civilization has most industrialized countries coming back stronger after conflict/depression. That is of course up to us if we want to make an equitable and productive society or descend into civil war or some other form of protracted dustbin.
Too many of you act as if the sonsofbitches pushing this debt want it repaid. Here's a little life lesson for you: "The borrower is servant to the lender."
Now please explain to me why "yo masta" would want to just cancel your slavery. The only thing that will stop this insanity will be an outside force.......China, Russia, Iran, Saudi Arabia......or God.
I list those countries in particular because they have the leverage......mostly by energy means......to collapse the US economy. None of them could get it done without bringing major military and/or economic pain on themselves.
God of course could easily accomplish it. Apparently He is waiting for the right time and being merciful to some by delaying the coming calamity.
There is no getting out of this. There is no fix. Those in power now are planning for the coming collapse by preparing the next phase of our slavery..........called a cashless, all digital society.
Thanks for your thoughts. I'm curious if what Joe says is actually possible. If it is, it strikes me as the perfect set-up to convince the sheople that
1) their overlords are good,
2) the doomsayers are nuts, and
3) "now that we've proven ourselves by canceling your debt, why not switch over to our CDBC for even more stability."
It was a well thought out and comprehensive video. The guy is one smart cookie.
However, I don't see any solution here in our current situation. There is no solution that is not going to cause a crash and massive pain.
1. Debt cancellation route:
You cannot just "cancel" the debt. The dollar is the world's reserve currency. It is "trusted" because of its stability or perceived stability..........mostly in the past. There are trillions in debt held by various foreign entities that are not going to forgive the US government its debt owed to them. If we started "canceling debt" it would cause a confidence collapse int he dollar.......and thereby cause a dollar collapse. Remember debt is an asset to the debt holder. Forgiving the debt removes the asset from the balance sheet.........and the banking sector would quickly become insolvent.
This would require every single debt holder of every single dollar of debt to go along with simultaneously. Never........gonna.........happen.
2. Deflationary solution:
Once again this is not a solution. Sure, it will wipe out the debt, but it will do so by a collapse and massive pain. Lower prices result in people/companies not being able to service their debt......which leads to defaults.......which leads to a banking/currency collapse, massive pain.....blah, blah, blah.
3. Inflationary solution:
The most obvious, tried over and over solution that always......ALWAYS.......leads to economic collapse. By devaluing the dollar to the point necessary, a currency crisis will be created whereby no one will want any government debt. If the government can't borrow money, what will it do, print the money? No. That is the Fed's role. The government gave up the ability to print money in 1913 when the Federal Reserve was created. The government must borrow or tax the funds it needs. The rest of the world does NOT have to do business with us. If we deflate the value of the currency too much too fast, no one will want to sell us goods and services. If I was a major oil producing country today, I wouldn't sell the US my oil for their crappy dollars.
4. Economic Output:
LMAO........There is not enough raw material, energy to process it, hours in a human life or enough humans on the planet to work nonstop, 24/7 and generate enough "revenue" to payback the debt.
Just as proof that more technology and energy is not going to solve this, ask yourself how much debt we have run up since the year 2000? You know, when technology really took off.
The real issue here is every dollar is a unit of debt. Period. Money is borrowed into existence. Every frickin dollar is a dollar of debt owed to someone. We operate in a system created to fail. It was inevitable that we would collapse at some point in time after the Federal Reserve came into existence.
Any reduction in the creation of debt will collapse the system. Let me repeat that, ANY REDUCTION in the creation of debt will collapse the system. We have now reached a point where a certain amount of debt must be created each year or the system will collapse. For now it is about $1 trillion a year. In about three years it will be $2 trillion a year.........and only get worse from there.
There are two things that are going to end this........and neither one is going to be a fun ride for anybody.
1. When the rest of the world tells us to take our dollars and shove them. We are 5% of the world's population. If you made "widgets" and wanted to sell them to the world, why would you bother with the self-absorbed, spoiled brats that make up only 5% of the world's population? One reason only........dollars. What if dollars no longer matter? Then at that point, why would you care about that 5%.
2. When we can no longer get 20 mbpd of oil into our system. We use 20 million barrels every day in the US........just to maintain our day to day lives. What happens when we can only get 18 million.......16 million........15 million? I'll tell you. All hell is going to break loose.
We currently cannot support our debt with 20 million barrels a day. That is why the debt is going up like a bat out of hell. They are creating debt to pay for debt. When we are reduced to 18 million.......and it is coming....our economy will go into freefall. When we wake up one day and gasoline is $6-$8 a gallon, it is game over. Not try to imagine $18-$24 a gallon.....if you can find it. The US is using the resources of the world to maintain its high, high standard of living. It is no longer sustainable. We have become more trouble than we are worth, and the rest of the world wants its resources for its way of life.
We are 5% of the world's population and we use 20% of the world's daily energy production. Europe is 10% and uses another 20% of the energy. So 15% of the population uses 40% of the energy, and the other 85% population gets to divvy up the remaining 60%. Why should they? If they stop shipping us the 7-8 million barrels we buy and ship in every day, what happens to us then? Literally hard to imagine the fallout.
I see no "fix" and what comes out after the dust settles it what should really be scaring us. I read a book once about the collapse of the Soviet Union that highlighted what happened to the smaller countries that depended on the USSR, specifically Cuba and North Korea. Cuba was a agrarian based society, but NK had become industrialized and very centralized. Both lost imports of Russian oil and fuels. Cuba wasn't affected that much, but NK collapsed. In NK they lost their large mechanized farms and the ability to generate electricity. To the point they were starving and eating each other. It was an eye opener for me. If we ever lose a large portion of the energy we currently daily get, there is going to be major disruptions in our society........especially in the food markets. Millions are going to die of starvation before we can get local farms back on line. The rioting and chaos will be off the charts.
The debt is a matter of national security. We have no responsible, rational, reasonable leadership. The piper is going to be paid. May God have mercy on us......because the rest of the world will not.
THANK YOU for investing so much time and knowledge into your responses--the point-by-point response to Joe's video, AND the oil #s AND especially the Cuba - NK impacts--eye-opening about NK.
There is NO WAY out........except total collapse.
Those who talk about solutions to the problem, do not understand the system or the problem.
Money is borrowed into existence......at interest. The interest is not borrowed into existence, so there is always more debt AND interest than there is money in existence.
People talk about the Fed raising rates to "fight inflation." Hell, the Fed is raising rate to generate more inflation. They need the inflation. They love the inflation. Has inflation gone down, since they started raising rates on the biggest mountain of debt the world has ever seen? Hell no! Look at the increase in debt since they started raising rates. The world is awash in debt. Raise the cost of debt, and you raise the price on everything.
You are not going to get these people running this shit show to act responsibly. We passed any hope of that a couple of decades ago.
Shrrrr!
The bankers may be listening!!
Did you mention The illegal 16th Amendment & Bill Benson's " Law that never was?
The Grace Commission of 1984 that explained that the Income Tax revenues do not go to the Government,but go instead to the Fed. for Interest Payments?
The Bankers that took over in 1913 can make the Mafia look like Amateurs!
💯💯💯
Like that internet meme pic in Mandarin and English: Carefully Fall Into The Cliff. This may be less orderly than that.
https://i.redd.it/qpubroefzpt11.jpg
The way out will probably be war as it so often sadly is. The inflation dynamics will put stress on regular Americans. That will likely cause domestic strife as the usual methods of containment continue to fail. An external threat prevents the country coming apart at the seams by channeling the stress outward.
We will do better in America than most of the rest of the world as the old western global financial order collapses.We will do better because we have a powerful political order to back us up politically & financially When Washington goes down.
America has the Sovereign Federated States of the American Republic!
States that are semi Autonomous Nations in themselves that are capable of picking up the slack together!
I hope you're right.
Besides which,
North America is the last Commodities Rich area of it's size unclaimed by the BRICS.
The financial future will once more be dependent upon economies based upon commodities!
The only way the Western European nations like Britain rose to great power was thru their colonial empires!.The Empires are now independent nations no longer being bled of their resources. Bled by the small western European Nations divested of their overseas empires
The FED has lost control of the bond market because it has lost it's credibility. The end game was always going to be "brrrrrrrrr". It's all down hill for the US dollar now. Higher interest rates will act like "air brakes" on a diving jet. It keeps it in the air a little bit longer but at the expense of what keeps it in the air!
"When Interest Rates Rise, Debt Becomes a Problem" ONLY for the herds of modern moron slaves...
For the OWNERS of the main system - the MONETARY SYSTEM - rates rise only increase their wealth and their ability to own even more real assets.
Keep slaving and don't worry about a thing!
Deficits happen when foolish politicians decide to spend beyond the taxes they collect. If they decided to disappoint their constituents and spend far less and not borrow they could pay interest and principle out of tax revenue for decades and wipe out the debt. They won't do it because spending without limit is more fun than austerity and walking the straight and narrow. Got gold or Silver?
Pretty soon our fiat currency is going to be nothing but "funny money."
It already is.
No more foreign wars and interventions. Cut military spending by 20%. Cut off Ukraine and Israel.
It would take spending elimination of 80 to 95 percent to pay interest and some principle each year from tax revenue. This would have to continue for decades.
A financial collapse may spare the country of the pain of the political collapse.The political collapse that will happen at the same time.Both will force The Federated states to take over by default!
Take charge and begin to rebuild! Let the corrupt Federal Government in Washington revert back to it's original Constitutional mandate!
well said, thanks for sharing Ryan's article
As far as Social Security spending goes. I understand that it was enacted when the stock market was very shaky but I can't help wondering why somewhere along the way congress didn't allow some portion of it to be placed in equities. T-bills alone have not kept up with the economy.
Sure. Let's talk about how we could have rearranged the deck chairs on the Titanic.
Lol! Actually though I was also suggesting a path forward after the possible big reset when minds are more amenable.
Steve, I think you need to expand your imagination towards the advent of an apocalypse.
People's perspective after hitting that icy water and seeing that ship break in half was quite different from the 24 hrs prior.
On the other side of this "event" we are going to have a whole new list of priorities and dependency.
Certainly a possibility, if it's as dire as you imagine. I am however an optimist long term and the history of civilization has most industrialized countries coming back stronger after conflict/depression. That is of course up to us if we want to make an equitable and productive society or descend into civil war or some other form of protracted dustbin.
What are your thoughts on this "canceling the debt" twist from Joe?
https://youtu.be/qn9YkwX0Hew?si=I_V2Imel3w9FYhnz
Canceling the debt? Why would they?
Too many of you act as if the sonsofbitches pushing this debt want it repaid. Here's a little life lesson for you: "The borrower is servant to the lender."
Now please explain to me why "yo masta" would want to just cancel your slavery. The only thing that will stop this insanity will be an outside force.......China, Russia, Iran, Saudi Arabia......or God.
I list those countries in particular because they have the leverage......mostly by energy means......to collapse the US economy. None of them could get it done without bringing major military and/or economic pain on themselves.
God of course could easily accomplish it. Apparently He is waiting for the right time and being merciful to some by delaying the coming calamity.
There is no getting out of this. There is no fix. Those in power now are planning for the coming collapse by preparing the next phase of our slavery..........called a cashless, all digital society.
Thanks for your thoughts. I'm curious if what Joe says is actually possible. If it is, it strikes me as the perfect set-up to convince the sheople that
1) their overlords are good,
2) the doomsayers are nuts, and
3) "now that we've proven ourselves by canceling your debt, why not switch over to our CDBC for even more stability."
It was a well thought out and comprehensive video. The guy is one smart cookie.
However, I don't see any solution here in our current situation. There is no solution that is not going to cause a crash and massive pain.
1. Debt cancellation route:
You cannot just "cancel" the debt. The dollar is the world's reserve currency. It is "trusted" because of its stability or perceived stability..........mostly in the past. There are trillions in debt held by various foreign entities that are not going to forgive the US government its debt owed to them. If we started "canceling debt" it would cause a confidence collapse int he dollar.......and thereby cause a dollar collapse. Remember debt is an asset to the debt holder. Forgiving the debt removes the asset from the balance sheet.........and the banking sector would quickly become insolvent.
This would require every single debt holder of every single dollar of debt to go along with simultaneously. Never........gonna.........happen.
2. Deflationary solution:
Once again this is not a solution. Sure, it will wipe out the debt, but it will do so by a collapse and massive pain. Lower prices result in people/companies not being able to service their debt......which leads to defaults.......which leads to a banking/currency collapse, massive pain.....blah, blah, blah.
3. Inflationary solution:
The most obvious, tried over and over solution that always......ALWAYS.......leads to economic collapse. By devaluing the dollar to the point necessary, a currency crisis will be created whereby no one will want any government debt. If the government can't borrow money, what will it do, print the money? No. That is the Fed's role. The government gave up the ability to print money in 1913 when the Federal Reserve was created. The government must borrow or tax the funds it needs. The rest of the world does NOT have to do business with us. If we deflate the value of the currency too much too fast, no one will want to sell us goods and services. If I was a major oil producing country today, I wouldn't sell the US my oil for their crappy dollars.
4. Economic Output:
LMAO........There is not enough raw material, energy to process it, hours in a human life or enough humans on the planet to work nonstop, 24/7 and generate enough "revenue" to payback the debt.
Just as proof that more technology and energy is not going to solve this, ask yourself how much debt we have run up since the year 2000? You know, when technology really took off.
The real issue here is every dollar is a unit of debt. Period. Money is borrowed into existence. Every frickin dollar is a dollar of debt owed to someone. We operate in a system created to fail. It was inevitable that we would collapse at some point in time after the Federal Reserve came into existence.
Any reduction in the creation of debt will collapse the system. Let me repeat that, ANY REDUCTION in the creation of debt will collapse the system. We have now reached a point where a certain amount of debt must be created each year or the system will collapse. For now it is about $1 trillion a year. In about three years it will be $2 trillion a year.........and only get worse from there.
There are two things that are going to end this........and neither one is going to be a fun ride for anybody.
1. When the rest of the world tells us to take our dollars and shove them. We are 5% of the world's population. If you made "widgets" and wanted to sell them to the world, why would you bother with the self-absorbed, spoiled brats that make up only 5% of the world's population? One reason only........dollars. What if dollars no longer matter? Then at that point, why would you care about that 5%.
2. When we can no longer get 20 mbpd of oil into our system. We use 20 million barrels every day in the US........just to maintain our day to day lives. What happens when we can only get 18 million.......16 million........15 million? I'll tell you. All hell is going to break loose.
We currently cannot support our debt with 20 million barrels a day. That is why the debt is going up like a bat out of hell. They are creating debt to pay for debt. When we are reduced to 18 million.......and it is coming....our economy will go into freefall. When we wake up one day and gasoline is $6-$8 a gallon, it is game over. Not try to imagine $18-$24 a gallon.....if you can find it. The US is using the resources of the world to maintain its high, high standard of living. It is no longer sustainable. We have become more trouble than we are worth, and the rest of the world wants its resources for its way of life.
We are 5% of the world's population and we use 20% of the world's daily energy production. Europe is 10% and uses another 20% of the energy. So 15% of the population uses 40% of the energy, and the other 85% population gets to divvy up the remaining 60%. Why should they? If they stop shipping us the 7-8 million barrels we buy and ship in every day, what happens to us then? Literally hard to imagine the fallout.
I see no "fix" and what comes out after the dust settles it what should really be scaring us. I read a book once about the collapse of the Soviet Union that highlighted what happened to the smaller countries that depended on the USSR, specifically Cuba and North Korea. Cuba was a agrarian based society, but NK had become industrialized and very centralized. Both lost imports of Russian oil and fuels. Cuba wasn't affected that much, but NK collapsed. In NK they lost their large mechanized farms and the ability to generate electricity. To the point they were starving and eating each other. It was an eye opener for me. If we ever lose a large portion of the energy we currently daily get, there is going to be major disruptions in our society........especially in the food markets. Millions are going to die of starvation before we can get local farms back on line. The rioting and chaos will be off the charts.
The debt is a matter of national security. We have no responsible, rational, reasonable leadership. The piper is going to be paid. May God have mercy on us......because the rest of the world will not.
THANK YOU for investing so much time and knowledge into your responses--the point-by-point response to Joe's video, AND the oil #s AND especially the Cuba - NK impacts--eye-opening about NK.