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Author Topic: If We Don’t Cut Debt And Spending, The U.S. Is Poised For Another Financial Crisis  (Read 1162 times)

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Offline Free Vulcan

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If We Don’t Cut Debt And Spending, The U.S. Is Poised For Another Financial Crisis
« on: December 03, 2018, 01:38:41 pm »


On May 1, 1981, a three-month Treasury paid 16.3 percent. For the whole of 1981, 2.5 percent of the gross domestic product went to pay just the interest on the federal debt. In 1981, the total money supply was equal to 69 percent of the gross domestic product (GDP).

Too many dollars chasing too few goods resulted in inflation of 8.92 percent in 1981. That was considered a sufficient economic emergency for the Federal Reserve to deliberately force the economy into a recession in order to combat the greater threat of inflation.

Today, the three-month Treasury pays a sleep-inducing 2.25 percent and inflation seems to be in a long-term band of between 1.5 and 2.5 percent. But it is starting to trend up a little, and the Fed has begun to very cautiously raise interest rates just a little at a time. If that seems like deja vu, it might remind you of the late 1970s.

http://thefederalist.com/2018/12/03/the-u-s-is-poised-for-another-huge-financial-crisis-if-we-dont-cut-debt-and-spending/
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Offline Sanguine

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Re: If We Don’t Cut Debt And Spending, The U.S. Is Poised For Another Financial Crisis
« Reply #1 on: December 03, 2018, 02:16:04 pm »
Not if but when.
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Offline IsailedawayfromFR

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Re: If We Don’t Cut Debt And Spending, The U.S. Is Poised For Another Financial Crisis
« Reply #2 on: December 03, 2018, 04:41:11 pm »
There are two ways to do this, one is voluntary and the other involuntary.

In almost all cases, it is better to choose the voluntary approach.
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Offline LMAO

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Re: If We Don’t Cut Debt And Spending, The U.S. Is Poised For Another Financial Crisis
« Reply #3 on: December 03, 2018, 07:14:02 pm »
Quote from: IsailedawayfromFR on December 03, 2018, 04:41:11 pm
There are two ways to do this, one is voluntary and the other involuntary.

In almost all cases, it is better to choose the voluntary approach.

 Agree

 But I have a hunch it’ll be involuntary.  And even that expect a fight . Look what happened during the southern European debt crisis
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Online Fishrrman

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Re: If We Don’t Cut Debt And Spending, The U.S. Is Poised For Another Financial Crisis
« Reply #4 on: December 04, 2018, 02:02:58 am »
I've said it before, I'll say it again:

Those who want to fix the "debt crisis" don't have the power to do it.
Those who DO "have the power to fix it" will NEVER do it, until they are left with no other choice.
Until that time, it will not and cannot be "fixed".

The debt situation is like a train without brakes running down the mountain.
Nothing can stop it, until it wrecks and "stops itself".
Then, and ONLY THEN, can the wreckage be cleared up, and the track restored.

So folks.... relax and enjoy the ride.
Stop worrying or complaining about the debt (see reasons why above).
It is what it is.
And it can't be fixed... until "the crash".
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