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America's Fiscal Collapse Accelerates
Apr 2, 2024 15:13:15   #
AuntiE Loc: 45th Least Free State
 
https://mises.org/mises-wire/americas-fiscal-collapse-accelerates

America's Fiscal Collapse Accelerates
04/02/2024
debt bomb

In case you thought anybody in Washington was driving this thing, they are not.

It’s official: the Department of Treasury is now issuing debt at p******c levels. It’s worth noting the p******c record was double the previous record, which had stood for 231 years.

In raw numbers, the latest numbers for Q4 2023 show Treasury issued $7 trillion in new debt. For the entire year, it came to $23 trillion.


This has bloated the Treasury market to $27 trillion — up 60% since the p******c. In other words, one-third of Treasuries have fresh ink on them. And it's up roughly sixfold since the 2008 crisis.

Meaning if we hit another crash, it could be a lot bigger.

Sending US Economy to Defaults

At this point, federal debt is rising by $1 trillion every 90 days, and US government spending as a percent of GDP is at World War 2 levels.

Bottom of Form

Given we're not in a World War — in theory — nor are we in a p******c, why is there so much debt? Easy: it's buying growth.

Or, as Balaji Srinivasan puts it: “The economy isn't real. It's propped up by debt. They will f**e it till they break it.”

Even the Wall Street Journal, which loves debt, is sounding the alarm, writing that rapid growth in debt often ends badly, and given the enormous size and alleged safety of the Treasury market, any "instability" could be catastrophic.

Why catastrophic? Because US treasuries are treated like cash by everything from banks to pension funds to large corporations and individual 401k's. A treasury is seen as cash that pays interest.


This is false, of course: A Treasury is a promise from Uncle Sam to pay you back someday, perhaps 20 or 30 years in the future.

This means that, unlike cash, any concerns investors might have about Uncle Sam's ability -- or willingness -- to pay can crash Treasuries.

If that happens, it immediately sends the entire banking system, pension system, and hundreds of corporations into default.

Trillions in F**e Debt

Indeed, it could break the payment plumbing in the entire financial system -- you wouldn't be able to get money.

If that sounds dire, recall that all of these are sustained by the gossamer thin belief that Uncle Sam will pay back every penny with interest.

This is curious given neither v**ers, who in theory run the government, nor Congress — who actually does run the government — seem to think the debt is real.

You can actually try this at home: tell a v**er that student loan bailouts will cost a trillion -- meaning $10 grand out of their pocket. Or that another war will cost $30 grand out of pocket. Most don't care. Because it's not real.


So the v**ers don't think it's real. Congress doesn't think it's real. But literally, everything depends on the illusion that every penny of federal debt will be repaid in full, with interest.

What could go wrong?

Conclusion

Every fiscal trend is in the wrong direction. We're already at $2 trillion deficit, it will soar by trillions when recession hits.

And it will keep churning with social security, Medicare, and spending on everything from i*****l i*******ts to fresh wars.

At this point, there is nothing standing between us and fiscal collapse. The only question is when.

Originally published at ProfStOngeWeekly.com



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Reply
Apr 2, 2024 15:32:47   #
Parky60 Loc: People's Republic of Illinois
 
AuntiE wrote:
https://mises.org/mises-wire/americas-fiscal-collapse-accelerates

America's Fiscal Collapse Accelerates
04/02/2024
debt bomb

In case you thought anybody in Washington was driving this thing, they are not.

It’s official: the Department of Treasury is now issuing debt at p******c levels. It’s worth noting the p******c record was double the previous record, which had stood for 231 years.

In raw numbers, the latest numbers for Q4 2023 show Treasury issued $7 trillion in new debt. For the entire year, it came to $23 trillion.


This has bloated the Treasury market to $27 trillion — up 60% since the p******c. In other words, one-third of Treasuries have fresh ink on them. And it's up roughly sixfold since the 2008 crisis.

Meaning if we hit another crash, it could be a lot bigger.

Sending US Economy to Defaults

At this point, federal debt is rising by $1 trillion every 90 days, and US government spending as a percent of GDP is at World War 2 levels.

Bottom of Form

Given we're not in a World War — in theory — nor are we in a p******c, why is there so much debt? Easy: it's buying growth.

Or, as Balaji Srinivasan puts it: “The economy isn't real. It's propped up by debt. They will f**e it till they break it.”

Even the Wall Street Journal, which loves debt, is sounding the alarm, writing that rapid growth in debt often ends badly, and given the enormous size and alleged safety of the Treasury market, any "instability" could be catastrophic.

Why catastrophic? Because US treasuries are treated like cash by everything from banks to pension funds to large corporations and individual 401k's. A treasury is seen as cash that pays interest.


This is false, of course: A Treasury is a promise from Uncle Sam to pay you back someday, perhaps 20 or 30 years in the future.

This means that, unlike cash, any concerns investors might have about Uncle Sam's ability -- or willingness -- to pay can crash Treasuries.

If that happens, it immediately sends the entire banking system, pension system, and hundreds of corporations into default.

Trillions in F**e Debt

Indeed, it could break the payment plumbing in the entire financial system -- you wouldn't be able to get money.

If that sounds dire, recall that all of these are sustained by the gossamer thin belief that Uncle Sam will pay back every penny with interest.

This is curious given neither v**ers, who in theory run the government, nor Congress — who actually does run the government — seem to think the debt is real.

You can actually try this at home: tell a v**er that student loan bailouts will cost a trillion -- meaning $10 grand out of their pocket. Or that another war will cost $30 grand out of pocket. Most don't care. Because it's not real.


So the v**ers don't think it's real. Congress doesn't think it's real. But literally, everything depends on the illusion that every penny of federal debt will be repaid in full, with interest.

What could go wrong?

Conclusion

Every fiscal trend is in the wrong direction. We're already at $2 trillion deficit, it will soar by trillions when recession hits.

And it will keep churning with social security, Medicare, and spending on everything from i*****l i*******ts to fresh wars.

At this point, there is nothing standing between us and fiscal collapse. The only question is when.

Originally published at ProfStOngeWeekly.com
https://mises.org/mises-wire/americas-fiscal-colla... (show quote)

I posted a couple of similar articles recently AuntiE with just a few replies. Everyone one would rather stick their heads in the sand rather than address the upcoming economic collapse.

Reply
Apr 2, 2024 15:57:45   #
AuntiE Loc: 45th Least Free State
 
Parky60 wrote:
I posted a couple of similar articles recently AuntiE with just a few replies. Everyone one would rather stick their heads in the sand rather than address the upcoming economic collapse.


I have observed that very few of our newer site members ever post a news articles or respond to same. It is always about their feelings on some subject.

Reply
 
 
Apr 3, 2024 06:03:27   #
Ted_68
 
It's good to see source info from people,and places that I am not familiar with- thank you both. Silver is going to break out get in while you can. 2292.00 gold open

Reply
Apr 3, 2024 06:16:22   #
Ted_68
 
I try with my crew mates to alert them about the pitfalls of in investing but they have this blind faith in there company 401k, that is s**t. But I try

Reply
Apr 3, 2024 06:43:50   #
Rose42
 
AuntiE wrote:
https://mises.org/mises-wire/americas-fiscal-collapse-accelerates

America's Fiscal Collapse Accelerates
04/02/2024
debt bomb

In case you thought anybody in Washington was driving this thing, they are not.

It’s official: the Department of Treasury is now issuing debt at p******c levels. It’s worth noting the p******c record was double the previous record, which had stood for 231 years.

In raw numbers, the latest numbers for Q4 2023 show Treasury issued $7 trillion in new debt. For the entire year, it came to $23 trillion.


This has bloated the Treasury market to $27 trillion — up 60% since the p******c. In other words, one-third of Treasuries have fresh ink on them. And it's up roughly sixfold since the 2008 crisis.

Meaning if we hit another crash, it could be a lot bigger.

Sending US Economy to Defaults

At this point, federal debt is rising by $1 trillion every 90 days, and US government spending as a percent of GDP is at World War 2 levels.

Bottom of Form

Given we're not in a World War — in theory — nor are we in a p******c, why is there so much debt? Easy: it's buying growth.

Or, as Balaji Srinivasan puts it: “The economy isn't real. It's propped up by debt. They will f**e it till they break it.”

Even the Wall Street Journal, which loves debt, is sounding the alarm, writing that rapid growth in debt often ends badly, and given the enormous size and alleged safety of the Treasury market, any "instability" could be catastrophic.

Why catastrophic? Because US treasuries are treated like cash by everything from banks to pension funds to large corporations and individual 401k's. A treasury is seen as cash that pays interest.


This is false, of course: A Treasury is a promise from Uncle Sam to pay you back someday, perhaps 20 or 30 years in the future.

This means that, unlike cash, any concerns investors might have about Uncle Sam's ability -- or willingness -- to pay can crash Treasuries.

If that happens, it immediately sends the entire banking system, pension system, and hundreds of corporations into default.

Trillions in F**e Debt

Indeed, it could break the payment plumbing in the entire financial system -- you wouldn't be able to get money.

If that sounds dire, recall that all of these are sustained by the gossamer thin belief that Uncle Sam will pay back every penny with interest.

This is curious given neither v**ers, who in theory run the government, nor Congress — who actually does run the government — seem to think the debt is real.

You can actually try this at home: tell a v**er that student loan bailouts will cost a trillion -- meaning $10 grand out of their pocket. Or that another war will cost $30 grand out of pocket. Most don't care. Because it's not real.


So the v**ers don't think it's real. Congress doesn't think it's real. But literally, everything depends on the illusion that every penny of federal debt will be repaid in full, with interest.

What could go wrong?

Conclusion

Every fiscal trend is in the wrong direction. We're already at $2 trillion deficit, it will soar by trillions when recession hits.

And it will keep churning with social security, Medicare, and spending on everything from i*****l i*******ts to fresh wars.

At this point, there is nothing standing between us and fiscal collapse. The only question is when.

Originally published at ProfStOngeWeekly.com
https://mises.org/mises-wire/americas-fiscal-colla... (show quote)


We will never be able to pay off all our debt. People don’t want to believe we’re in trouble and would rather believe things are getting better when they’re not.

Reply
Apr 3, 2024 07:00:39   #
Parky60 Loc: People's Republic of Illinois
 
Ted_68 wrote:
It's good to see source info from people,and places that I am not familiar with- thank you both. Silver is going to break out get in while you can. 2292.00 gold open

Silver's is up almost 20% since I started investing in it two years ago and has gone up ~$3 per ounce in the last few weeks. One analyst I trust says he thinks that it will go to $50 an ounce by the end of the year.

Reply
 
 
Apr 3, 2024 17:33:35   #
America 1 Loc: South Miami
 
AuntiE wrote:
https://mises.org/mises-wire/americas-fiscal-collapse-accelerates

America's Fiscal Collapse Accelerates
04/02/2024
debt bomb

In case you thought anybody in Washington was driving this thing, they are not.

It’s official: the Department of Treasury is now issuing debt at p******c levels. It’s worth noting the p******c record was double the previous record, which had stood for 231 years.

In raw numbers, the latest numbers for Q4 2023 show Treasury issued $7 trillion in new debt. For the entire year, it came to $23 trillion.


This has bloated the Treasury market to $27 trillion — up 60% since the p******c. In other words, one-third of Treasuries have fresh ink on them. And it's up roughly sixfold since the 2008 crisis.

Meaning if we hit another crash, it could be a lot bigger.

Sending US Economy to Defaults

At this point, federal debt is rising by $1 trillion every 90 days, and US government spending as a percent of GDP is at World War 2 levels.

Bottom of Form

Given we're not in a World War — in theory — nor are we in a p******c, why is there so much debt? Easy: it's buying growth.

Or, as Balaji Srinivasan puts it: “The economy isn't real. It's propped up by debt. They will f**e it till they break it.”

Even the Wall Street Journal, which loves debt, is sounding the alarm, writing that rapid growth in debt often ends badly, and given the enormous size and alleged safety of the Treasury market, any "instability" could be catastrophic.

Why catastrophic? Because US treasuries are treated like cash by everything from banks to pension funds to large corporations and individual 401k's. A treasury is seen as cash that pays interest.


This is false, of course: A Treasury is a promise from Uncle Sam to pay you back someday, perhaps 20 or 30 years in the future.

This means that, unlike cash, any concerns investors might have about Uncle Sam's ability -- or willingness -- to pay can crash Treasuries.

If that happens, it immediately sends the entire banking system, pension system, and hundreds of corporations into default.

Trillions in F**e Debt

Indeed, it could break the payment plumbing in the entire financial system -- you wouldn't be able to get money.

If that sounds dire, recall that all of these are sustained by the gossamer thin belief that Uncle Sam will pay back every penny with interest.

This is curious given neither v**ers, who in theory run the government, nor Congress — who actually does run the government — seem to think the debt is real.

You can actually try this at home: tell a v**er that student loan bailouts will cost a trillion -- meaning $10 grand out of their pocket. Or that another war will cost $30 grand out of pocket. Most don't care. Because it's not real.


So the v**ers don't think it's real. Congress doesn't think it's real. But literally, everything depends on the illusion that every penny of federal debt will be repaid in full, with interest.

What could go wrong?

Conclusion

Every fiscal trend is in the wrong direction. We're already at $2 trillion deficit, it will soar by trillions when recession hits.

And it will keep churning with social security, Medicare, and spending on everything from i*****l i*******ts to fresh wars.

At this point, there is nothing standing between us and fiscal collapse. The only question is when.

Originally published at ProfStOngeWeekly.com
https://mises.org/mises-wire/americas-fiscal-colla... (show quote)


Post Biden
When we got into office, the thing that surprised me most was to find that things were just as bad as we’d been saying they were.
John F. Kennedy

Reply
Apr 3, 2024 18:33:15   #
Ted_68
 
Parky60 wrote:
Silver's is up almost 20% since I started investing in it two years ago and has gone up ~$3 per ounce in the last few weeks. One analyst I trust says he thinks that it will go to $50 an ounce by the end of the year.


I forget which wing nut on here tried to talk me out of metals 3 or so years back. With AU at 2320, like ask them how they are doing

Reply
Apr 3, 2024 21:13:33   #
America 1 Loc: South Miami
 
Parky60 wrote:
Silver's is up almost 20% since I started investing in it two years ago and has gone up ~$3 per ounce in the last few weeks. One analyst I trust says he thinks that it will go to $50 an ounce by the end of the year.



Gold 3-year chart
https://www.barchart.com/futures/quotes/GCM24/interactive-chart
June gold 2321.7 up 6.7.
Opinion
https://www.barchart.com/futures/quotes/GCM24/opinion

Silver 1-month chart
https://www.barchart.com/futures/quotes/SIK24/interactive-chart
May Silver 27.650 up 0.329
Opinion
https://www.barchart.com/futures/quotes/SIK24/opinion

Dollar Tumbles and Gold Soars to a Record High on Dovish Powell Comments
Barchart - Wed Apr 3,
2:52 PM CDT
The dollar index (DXY00) on Wednesday fell by -0.54%. The dollar retreated Wednesday after the US Mar ISM services index unexpectedly declined and after the Mar ISM services price paid sub-index fell to a 4-year low, dovish factors for Fed policy. The dollar extended its losses on dovish comments from Fed Chair Powell who stated it will be appropriate for the Fed to cut interest rates “at some point this year.”
On the positive side for the dollar was the stronger-than-expected US Mar ADP employment report, a hawkish factor for Fed policy. Also, Atlanta Fed President Bostic said he favored waiting until Q4 for the Fed to begin cutting interest rates.
Fed Chair Powell said, "We do not expect that it will be appropriate to lower our policy rate until we have greater confidence that inflation is moving sustainably toward 2%. If the economy evolves broadly as we expect, most FOMC participants see it as likely to be appropriate to begin lowering the policy rate at some poin... Read more
https://www.barchart.com/futures/quotes/GCM24/futures-prices

Silver With The Most Important Breakout Of The Last 3 Years
Silver is trading sideways since 2021, a move that can be a corrective because of choppy and overlapping price action. Ideally, that's a very big triangle that can be coming to an end as metal is turning higher now and breaking the IMPORTANT trendline resistance of this contracting range. Ideally, A-B-C-D-E pattern is finished, so be aware of more upside, especially as a structure away from 21.90 looks impulsive, with no overlaps.
However, there can be some retracement within recovery, maybe a new fourth wave is already around the corner as silver can slow down a bit at the end of blue wave 3.
Support on dips is around $25.
If you like analysis visit us for more at www.wavetraders.com
https://www.barchart.com/story/news/25228407/silver-with-the-most-important-breakout-of-the-last-3-years

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