5 Consequences Of US Debt At $50 Trillion

https://www.forbes.com/sites/johnmauldin/2020/10/01/5-consequences-of-us-debt-at-50-trillion/?sh=6c4823b53f74

This is an article from October 1, 2020 so please forgive me if this was posted previously.

I have been critical of the Trump Administration’s spending while he was in office. But I am also even more critical of the accelerated spending under the Biden Administration. We are heading towards a point where the dollar will be worth very little and won’t buy very much. This article is a little different so read the whole article before commenting. Make sure you read his personal prediction at the end. Even though we are heading toward a day where the dollar will be worth almost nothing, the Fed will continue to buy our debt hiding the inflation. Very much in the same way Japan is doing the same. I will probably see this as an issue as I am now on a fixed income. But the younger generations here are going to suffer the most if they don’t stop voting for these big spenders. Quit being stupid low information voters. Start reading alternative news sources so you can see for yourself that the main stream media and the current batch of politicians are lying to you about our economy and how we can deal with it. Taxing the rich can’t work. There is not enough wealth in the US any more to overcome our debt problem. It is a lie. Google it for yourself. This spending has to stop. And taxing us more for more for ANYTHING is not the answer and cannot work. Quit thinking more taxes is okay. It is a lie. It cannot fix anything. Put your foot down and fight back.

Here are the highlights of this article:

1. Raising taxes will not solve the problem.

2. Debt is future income brought forward.

3. It is possible I’m being overly pessimistic about the need for a Great Reset which would include national debt.

4. Let me point out that, while the practical results of quantitative easing look similar to modern monetary theory (MMT), the actual results and practice are completely different.

5. While all of this is happening, we will continue to see accelerating technological transformation.

With a $50T debt, we would not be able to even pay the interest on such a huge amount. I too live on a fixed income of just under $6k a month. I have no car payments and with the low housing and food costs on the BI, I can live comfortably.   Wouldn't be able to do that on Oahu.

Number 5 is pure Hopium. If the technological marvels that they keep promising will make our lives better actually worked then they would not have to fall back on Great Reset Communism. These people ran the country into the ground and are out of ideas. Then next couple decades are really going to suck as federal solutions flail and we are forced to figure out how to make things work locally.

As stated in numerous posts, there is no mathematical way for the US empire to retire its national debt.  Other than extreme fiscal constraints such as the closing of all its foreign military garrisons, returning to a green-water navy, or chopping social welfare, education, social security, and etc., the only financially thing it can do is to inflate its debt.  However, on a debt of that size, we are talking about hyperinflating the debt.  This would naturally entail the crashing of the economy far worse on a scale that of the 1920's, resulting in social riots exponentially terrifying than was seen in 2020 that will lead to civil or revolutionary war and eventual balkanization.

Since the power okole is unwilling to give up its global hegemony as well as not risk the balkanization of its empire, it is the final card they can play that everyone should be ready to go against: War with Russia or China.  Assuming the US empire can win such a war without nuclear catastrophe is a mute point.  The power okole with all of its bunkers, foreign gateway havens abroad and maybe in outer space thanks to Musk, as well as stock of food and survival supplies, are just sociopathic insane enough to risk this scenario than accept the possibility that their empire is no more.

5 Consequences Of US Debt At $50 Trillion

https://www.forbes.com/sites/johnmauldin/2020/10/01/5-consequences-of-us-debt-at-50-trillion/?sh=6c4823b53f74

This is an article from October 1, 2020 so please forgive me if this was posted previously.

I have been critical of the Trump Administration’s spending while he was in office. But I am also even more critical of the accelerated spending under the Biden Administration. We are heading towards a point where the dollar will be worth very little and won’t buy very much. This article is a little different so read the whole article before commenting. Make sure you read his personal prediction at the end. Even though we are heading toward a day where the dollar will be worth almost nothing, the Fed will continue to buy our debt hiding the inflation. Very much in the same way Japan is doing the same. I will probably see this as an issue as I am now on a fixed income. But the younger generations here are going to suffer the most if they don’t stop voting for these big spenders. Quit being stupid low information voters. Start reading alternative news sources so you can see for yourself that the main stream media and the current batch of politicians are lying to you about our economy and how we can deal with it. Taxing the rich can’t work. There is not enough wealth in the US any more to overcome our debt problem. It is a lie. Google it for yourself. This spending has to stop. And taxing us more for more for ANYTHING is not the answer and cannot work. Quit thinking more taxes is okay. It is a lie. It cannot fix anything. Put your foot down and fight back.

Here are the highlights of this article:

1. Raising taxes will not solve the problem.

2. Debt is future income brought forward.

3. It is possible I’m being overly pessimistic about the need for a Great Reset which would include national debt.

4. Let me point out that, while the practical results of quantitative easing look similar to modern monetary theory (MMT), the actual results and practice are completely different.

5. While all of this is happening, we will continue to see accelerating technological transformation.

I don't believe much of what the Forbes rag publishes these days.
Most all that debt is owed to old farts in the form of our pensions, Social security, 401K's,
insurance companies we paid into for years.  The problem is none of the debt
it is backed by something tangible.
It is all a promise to pay. not backed by land, means of production,
needed services, et al, so it can be cancelled and then so what?
You going to take away their birthdays or send them to Guam?
That's what the kids will do,  just cancel it, and leave us hanging.
Never trust a Democrat.

Here is another take on the state of our economy and where we think it is headed:

https://twitter.com/TaviCosta/status/1365851337846497283

My question is how much more of our debt can the Fed continue to buy? How much longer can they keep interest rates artificially low? How much longer before we get another tax increase? Inflationary signs are here. Cost of living is going up rapidly. And this new administration has only been in office for a little over a month.

All of us who voted for Trump knew if he didn’t come back into office that this would happen. We all said right here in this forum and were very clear that a vote against Trump is a vote against our economy and that this would be the result. That means all of you who didn’t vote for Trump wanted this to happen. You want you taxes going up and to not have them go towards helping the economy. You want to pay more for every day expenses like gasoline. You already are paying a lot more for gas. You want your tax dollars to be sent to foreign countries for things like gender studies instead of going toward fixing the economy. You want rampant non controlled immigration. Why do you want all this? Damn TDS!

It’s ok. Lying Joe Biden promised to take care of us.  Like my wife is scheduled to have cataract surgery in both eyes next month.  It was supposed to be free with her financial assistance health plan.  Qualification last year was income under $75k for a married couple.  She got told last week the qualification threshold is now $60k or less and because we showed an income of $60,839 on our tax return for 2020 she no longer qualifies. So now the surgery will cost an estimated $2000 instead of $0 and her monthly insurance premium will be $1189 with copay instead of $483 with no copay.  I can see how Lying Joe’s affordable medical care for everyone really works well.  I see why some people I know game the system by getting a divorce in name only to qualify for government assistance.

It’s ok. Lying Joe Biden promised to take care of us.  Like my wife is scheduled to have cataract surgery in both eyes next month.  It was supposed to be free with her financial assistance health plan.  Qualification last year was income under $75k for a married couple.  She got told last week the qualification threshold is now $60k or less and because we showed an income of $60,839 on our tax return for 2020 she no longer qualifies. So now the surgery will cost an estimated $2000 instead of $0 and her monthly insurance premium will be $1189 with copay instead of $483 with no copay.  I can see how Lying Joe’s affordable medical care for everyone really works well.  I see why some people I know game the system by getting a divorce in name only to qualify for government assistance.

Lyin’ Joe also stopped the Trump executive order forcing the drug companies to sell my wife’s insulin to her with a $35 copay. I just picked up her insulin prescription yesterday and the price is back to where it was. We will spend over $4k this year again. Instead of under $800.

My wife just had the same surgery in both eyes back in November. Her vision is great now. We spent well over $10k for the surgeries and the doctor visits. My wife opted for some extras that were not covered by insurance. My wife could barely see before. Now her vision is clear and 20/20. She just needs glasses for reading now. Even though we paid for the extras, it was well worth the money for her.

Biden also has not allowed multiple insurance companies to compete for my healthcare needs. So I am forced to pay for Obamacare which only has one insurance provider. My premiums went up significantly this year. If they go up significantly again next year I will have to go to a lesser plan in order to afford my healthcare. So how is he lowering my health costs? Fact is he has not. And my costs have gone up significantly between my wife and I. I have considered going back to work until I qualify for Medicare. Thanks Joe! 

With a $50T debt, we would not be able to even pay the interest on such a huge amount. I too live on a fixed income of just under $6k a month. I have no car payments and with the low housing and food costs on the BI, I can live comfortably.   Wouldn't be able to do that on Oahu.

We basically moved back to the mainland due to the lack of good medical care my wife was getting on Oahu. It is the same reason why we didn’t fulfill our plans and retire to the BI. If she had received decent medical care on Oahu, we might have stayed. But I personally think we would not be able to afford it now that the cost for basics like food and gas are going up double digits in such a short period. We had a huge mortgage payment on Oahu. Since we moved we have a very small mortgage payment. But still most of our income goes to healthcare one way or another.

I don't believe much of what the Forbes rag publishes these days.
Most all that debt is owed to old farts in the form of our pensions, Social security, 401K's,
insurance companies we paid into for years.  The problem is none of the debt
it is backed by something tangible.
It is all a promise to pay. not backed by land, means of production,
needed services, et al, so it can be cancelled and then so what?
You going to take away their birthdays or send them to Guam?
That's what the kids will do,  just cancel it, and leave us hanging.
Never trust a Democrat.

Cancel it for the common good? Sounds like Socialism to me....

My question is how much more of our debt can the Fed continue to buy? How much longer can they keep interest rates artificially low?

Unfortunately Inspector, the FED will continue to print toilet dollars, by keeping interests low or even negative levels, since they are unwilling to let go their empire.

How much longer before we get another tax increase?

At some point, the government will raise taxes, but it's hard to collect taxes from those who have nothing to give.

Inflationary signs are here. Cost of living is going up rapidly.

As long as the US petrol-dollar control is not threatened, the US empire can continue to print toilet paper and, thereby, export the inflationary forces that currently exist in the US imperial financial system, to the rest of the World.  However, as more nations fight back the US empire's global currency Ponzi scheme, by either doing business in other currencies or going to fixed exchange rates, as China has done and have been wrongfully labeled as a currency manipulator, when, in fact, they were just trying to protect themselves, from the US empire's exported inflation; the US imperial financial system is doomed, in the long-term, leaving the power okole with no other option but WAR.

I hope I am wrong, but logically, what else can the power okole do?

We basically moved back to the mainland due to the lack of good medical care my wife was getting on Oahu. It is the same reason why we didn’t fulfill our plans and retire to the BI. If she had received decent medical care on Oahu, we might have stayed. But I personally think we would not be able to afford it now that the cost for basics like food and gas are going up double digits in such a short period. We had a huge mortgage payment on Oahu. Since we moved we have a very small mortgage payment. But still most of our income goes to healthcare one way or another.

Know what you mean. My mortgage for my house in Kailua was $5000 a month.  Wasn't a problem when I was working,  but when I retired, I had to move off Oahu.  The people that bought my house are carrying a $6005 mortgage payment.  Wife is a RN and husband is retired military and now working as a plumber, so I guess they can afford it.

<br>"As long as the US petrol-dollar control is not threatened"

This^

We invaded Iraq because of this as they were starting to trade oil in Euros.  Once the petro-dollar is done (Euros or Yuan), the US dollar will cease to be the world's reserve currency, and the USA will plunge into the darkness of hyper inflation.  Anyone ever see pictures of peeps in Zimbabwe or Venezuela buying goods with wheelbarrows full of paper "money?"  It is all about supply & demand.  Once the artificial demand for the US dollar disintegrates, it's value will dive on the world market.

Why does that matter?  Where does the majority of manufactured goods that the US consumes come from?  Historically, fiat has ALWAYS failed.  100%.  Why?  "The temptation to monetize debt (read "print" money) cannot be resisted."  We are getting close to the tipping point especially with the inevitable $1,900,000,000,000.00 "stimulus" bill passage. 

How does money get "printed?"  A private company, the Federal Reserve, makes a ledger entry in their computer system and then "loans" the fiat to the US Treasury.  And, the US Treasury pays interest (prime rate) to the Federal Reserve on the loan.

Not to fret.  Every country in the world uses fiat and we are still the largest economy in the world with the most powerful military (until China surpasses us in a few years).  We are simply "too big to fail!"  Anyone remember the idiot genius that sold the country that line? 

Ah, but what do I know?  All of the above is probably a bunch of malarky.  Probably . . .

/rant off

Lyin’ Joe also stopped the Trump executive order forcing the drug companies to sell my wife’s insulin to her with a $35 copay. I just picked up her insulin prescription yesterday and the price is back to where it was. We will spend over $4k this year again. Instead of under $800.

My wife just had the same surgery in both eyes back in November. Her vision is great now. We spent well over $10k for the surgeries and the doctor visits. My wife opted for some extras that were not covered by insurance. My wife could barely see before. Now her vision is clear and 20/20. She just needs glasses for reading now. Even though we paid for the extras, it was well worth the money for her.

Biden also has not allowed multiple insurance companies to compete for my healthcare needs. So I am forced to pay for Obamacare which only has one insurance provider. My premiums went up significantly this year. If they go up significantly again next year I will have to go to a lesser plan in order to afford my healthcare. So how is he lowering my health costs? Fact is he has not. And my costs have gone up significantly between my wife and I. I have considered going back to work until I qualify for Medicare. Thanks Joe! 

Its ok, cause orangeman bad and he is gone now. Brb wasting my vote for a 3rd party.

Although the dnc would still cheat, they would have to had cheated a little more if the 3rd parties voted trump in WI and AZ. Biden won by a little more and the 3rd party votes could have flipped it. Thats assuming the votes posted are legit.

Ive talked to a few libertarians and the smart ones would pick trump over biden any day of the week. The retarted ones will still argue for their 3rd party choice, even if told they had to either vote biden or trump.

Sent from my SM-G950U using Tapatalk

Every country in the world uses fiat and we are still the largest economy in the world with the most powerful military (until China surpasses us in a few years).  We are simply "too big to fail!"

True, but it must be noted that many nations are making their own preparations to move away from fiat to some other commodity or hybrid form of currency.  It should come to no surprise that China, Russia, and many other countries are buying up all the physical gold and other precious metals they can get their hands on.

The US empire, in an effort to thwart these attempts, either, indirectly, flood the market with gold, silver, etc. derivatives to depress its respective price or, directly, by preventing countries from retrieving their physical gold deposits located in other nations, like what they have decreed to Valenzuela, in their attempt, to reacquire their country's physical gold.

We basically moved back to the mainland due to the lack of good medical care my wife was getting on Oahu. It is the same reason why we didn’t fulfill our plans and retire to the BI. If she had received decent medical care on Oahu, we might have stayed. But I personally think we would not be able to afford it now that the cost for basics like food and gas are going up double digits in such a short period. We had a huge mortgage payment on Oahu. Since we moved we have a very small mortgage payment. But still most of our income goes to healthcare one way or another.

Gas prices have gone way up since you left. 

I'm in the process of refinancing my place.  I hope to pay off in approximately half the time.  I've been paying more than minimum for the past few years anyways, so I had gained a lot of ground there.  Even more so (hopefully) with the refi. 

Gas prices have gone way up since you left. 

I'm in the process of refinancing my place.  I hope to pay off in approximately half the time.  I've been paying more than minimum for the past few years anyways, so I had gained a lot of ground there.  Even more so (hopefully) with the refi.

Congratulations on having the self control that it takes to get ahead in this world/economy. There are advantages and disadvantages to paying off your place early. Disadvantage would be lowering and eventually losing your mortgage interest tax deduction. Of course the advantage would be lower or zero debt. Which then bodes the question, when you pay it off, what are you going to do with your monthly payments? As long as you are used to making mortgage payments every month you shouldn’t stop taking that same amount and paying yourself every month. Savings and/or investment. Knowing you I am sure you have a plan. Whatever it is it is a great feeling to no longer have that debt.

Congratulations on having the self control that it takes to get ahead in this world/economy. There are advantages and disadvantages to paying off your place early. Disadvantage would be lowering and eventually losing your mortgage interest tax deduction. Of course the advantage would be lower or zero debt. Which then bodes the question, when you pay it off, what are you going to do with your monthly payments? As long as you are used to making mortgage payments every month you shouldn’t stop taking that same amount and paying yourself every month. Savings and/or investment. Knowing you I am sure you have a plan. Whatever it is it is a great feeling to no longer have that debt.

Self control?  Moi?  Haha. . .

As for plans, yes and no.  I've been working so much O/T lately that there's already some "paying myself every month" going on.  Much of that goes into gun stuff, particularly reloading adventures lately. 

Yup, noted on mortgage interest deduction.  My financial situation right now is "good" overall.  Definitely better than a few years ago when I was putting a lot away for contingencies for my dad's health situation and care.  His financial situation was pretty good considering "normal" healthcare, but his level of care got pretty high.  So I can understand your situation, at least some of it. 

Congratulations on having the self control that it takes to get ahead in this world/economy. There are advantages and disadvantages to paying off your place early. Disadvantage would be lowering and eventually losing your mortgage interest tax deduction. Of course the advantage would be lower or zero debt. Which then bodes the question, when you pay it off, what are you going to do with your monthly payments? As long as you are used to making mortgage payments every month you shouldn’t stop taking that same amount and paying yourself every month. Savings and/or investment. Knowing you I am sure you have a plan. Whatever it is it is a great feeling to no longer have that debt.

"Whatever it is it is a great feeling to no longer have that debt."

I became debt free in the mid 90's.
I paid cash for my place here in Hawaii when
I moved here from WA state.
I built my shop and my daughters house, all cash.
Get out of any debt, unless you are an investor type
and can afford to lose money. You only invest with money
you can afford to lose.
I'm a chess player, not a poker guy.

Being debt free, I don't live in fear
and that is Freedom.