The Briefing Room
General Category => Economy/Business => Topic started by: catfish1957 on June 11, 2020, 12:58:41 pm
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(https://www.history.com/.image/ar_16:9%2Cc_fill%2Ccs_srgb%2Cfl_progressive%2Cg_faces:center%2Cq_auto:good%2Cw_768/MTU3ODc5MDg2NDM2MzI4Nzc3/the-national-debt-clock-is-a-very-very-large-digital-display.jpg)
https://www.cnsnews.com/article/washington/terence-p-jeffrey/federal-debt-tops-26-trillion-first-time-jumps-2-trillion-just (https://www.cnsnews.com/article/washington/terence-p-jeffrey/federal-debt-tops-26-trillion-first-time-jumps-2-trillion-just)
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(CNSNews.com) - The debt of the federal government topped $26 trillion for the first time on Tuesday, when it climbed from $25,960,547,920,986.11 to $26,003,751,512,344.91, according to data released today by the Treasury Department.
The federal debt had topped $24 trillion for the first time on April 7, 2020.
It then climbed another trillion dollars in just 28 days, topping $25 trillion for the first time on May 5.
Only 35 days had elapsed from when the debt topped that $25-trillion threshold on May 5 to yesterday, when it topped $26 trillion for the first time.........
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Pick your plot of the story ...As the legislative pukes in DC do their best drunken sailor routine, or 535 DC Neros' fiddle as the torch approaches the tinderbox of the US economy
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"The numbers" don't really mean anything any more.
So long as things continue to operate from one day to the next, they will continue to mean nothing.
Only when things STOP working, will those numbers count for something...
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"The numbers" don't really mean anything any more.
So long as things continue to operate from one day to the next, they will continue to mean nothing.
Only when things STOP working, will those numbers count for something...
Well they do in the scheme of things, if the debt is so unsustainable, that payments start exceeding the naton's ability to meet our budgetary obligations. There will be a dominoing effect with: (1) US $ no longer being accepted or used as world reference currency (2) The fulcrum of debt/ inflation explodes where standard of living rapidly declines. (3) US defaults on debt, causing worldwide spiraling depression. (4) US $ becomes next to worthelss, and nation converts to an economy based on precious metals and staples as units of measure for commerce. (5) Political anarchy takes place, with many possible outcomes. It might take the form of a drastic new form of government, it might be a splintered United States, or even foreign take over.
What is that tipping point? We all know we can't spend like drunken sailors forever, on a limitless credit card. I don't think anyone knows that exact tipping point, except it won't be too far into the future. I hate to be a dystopian doomsdayer, but we are dangerously close to painting ourselves into a corner. And the end result won't be pretty.
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Well they do in the scheme of things, if the debt is so unsustainable, that payments start exceeding the naton's ability to meet our budgetary obligations. There will be a dominoing effect with: (1) US $ no longer being accepted or used as world reference currency (2) The fulcrum of debt/ inflation explodes where standard of living rapidly declines. (3) US defaults on debt, causing worldwide spiraling depression. (4) US $ becomes next to worthelss, and nation converts to an economy based on precious metals and staples as units of measure for commerce. (5) Political anarchy takes place, with many possible outcomes. It might take the form of a drastic new form of government, it might be a splintered United States, or even foreign take over.
What is that tipping point? We all know we can't spend like drunken sailors forever, on a limitless credit card. I don't think anyone knows that exact tipping point, except it won't be too far into the future. I hate to be a dystopian doomsdayer, but we are dangerously close to painting ourselves into a corner. And the end result won't be pretty.
or 6) people stop buying our debt. Read Chinese.
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or 6) people stop buying our debt. Read Chinese.
That is already happening to a great degree. Reports from the Fed on the last few auctions, including the newly created 20 year note has been reported as anywhere from tepid to downright awful. Think about it...who wants to pony up to a 1.5% investment bond being backed by the clowns running DC right now.