- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Interest on the debt is 60% of the Amount taken in by the Treasury in February
Posted on 5/9/24 at 9:01 pm
Posted on 5/9/24 at 9:01 pm
Next year interest will be one trillion. And with higher rates and 8 trillion in bonds soon to be refinanced, it's going to get worse fast.
By 2030, we're looking at 1.5 trillion.
We are screwed and there is no solution. Take all other threats together (except maybe thermo-nuclear war) and they aren't one tenth the risk of this.
We are still at historically low rates. So this will get worse and worse as we refinance at higher rates.
To solve this the right way, we would need to gut discretionary spending and half defense spending.
There is no way they will have the balls to do that.
So regardless of what you hear from the fed, they will ultimately monetize the debt and rely on inflation to take care of the problem.
So we have to have an alternative to the dollar. The dollar is dying. There is no stopping it. We're going to see inflation and sluggish growth (stagnation) for a couple of generations.
Buy Gold. BRICs will ultimately go to a gold backed currency. Central banks are buying gold. Some nations are offering gold backed accounts. Demand is increasing.
By 2030, we're looking at 1.5 trillion.
We are screwed and there is no solution. Take all other threats together (except maybe thermo-nuclear war) and they aren't one tenth the risk of this.
We are still at historically low rates. So this will get worse and worse as we refinance at higher rates.
To solve this the right way, we would need to gut discretionary spending and half defense spending.
There is no way they will have the balls to do that.
So regardless of what you hear from the fed, they will ultimately monetize the debt and rely on inflation to take care of the problem.
So we have to have an alternative to the dollar. The dollar is dying. There is no stopping it. We're going to see inflation and sluggish growth (stagnation) for a couple of generations.
Buy Gold. BRICs will ultimately go to a gold backed currency. Central banks are buying gold. Some nations are offering gold backed accounts. Demand is increasing.
25
Posted on 5/9/24 at 9:02 pm to RiverCityTider
Sounds like the script from a talk radio ad.
Posted on 5/9/24 at 9:05 pm to TerryDawg03
Well it's true. It's an insolvable problem.
The gold part is my take. What do you think?
The gold part is my take. What do you think?
This post was edited on 5/9/24 at 9:05 pm
Posted on 5/9/24 at 9:08 pm to RiverCityTider
we're going off a cliff at some point. no question about if, only when. people just want to be delusional as long as they can.
Posted on 5/9/24 at 9:12 pm to faraway
There's only two outcomes:
1 Money isn't real and we can provide infinite goods to everyone so why bother with jobs and taxes?
2 Money is very real and we've built this massive tinder box of debt that will come crashing down in a catastrophic manner
1 Money isn't real and we can provide infinite goods to everyone so why bother with jobs and taxes?
2 Money is very real and we've built this massive tinder box of debt that will come crashing down in a catastrophic manner
Posted on 5/9/24 at 9:13 pm to RiverCityTider
Its a tale as old as time
Posted on 5/9/24 at 9:14 pm to RiverCityTider
quote:
Next year interest will be one trillion.
Too late. Last year's interest was 1.025T. From that point onward, it will continue to be over $1T until the currency crumbles under the weight of so much debt.
Posted on 5/9/24 at 9:15 pm to RiverCityTider
Take it to the Money Board. You will find a whole cohort of posters who will tell you that this isn't a problem at all.
Posted on 5/9/24 at 9:16 pm to RiverCityTider
There is no way they will have the balls to do that.
Trump and Vivek will
Trump and Vivek will
Posted on 5/9/24 at 9:16 pm to Bard
So why are we continuing on with this bad arse globalist foreign policy when they know damn well we can't afford a trillion a year for defense.
Posted on 5/9/24 at 9:16 pm to RiverCityTider
Willie Wonka opines on government spending!
Posted on 5/9/24 at 9:16 pm to RiverCityTider
quote:
Interest on the debt is 60% of the Amount taken in by the Treasury in February
Not that this is much of a consolation but the interest on the debt is a little less because the interest the Federal Reserve makes on Treasury Bonds they purchased with printed money is returned to the Treasury after expenses.
The Federal Reserve has about $7 trillion in Treasury Bonds they purchased with printed money.
This post was edited on 5/9/24 at 9:17 pm
Posted on 5/9/24 at 9:19 pm to FLTech
quote:
Trump and Vivek will
I don't think they could get the necessary spending cuts through congress.
Highly unlikely.
Bet on inflation.
Posted on 5/9/24 at 9:20 pm to RiverCityTider
The amount taken in by the Treasury is immaterial. It's all based on the US' willingness to enforce our fiat currency as the world's reserve notes under threat of force from the US Military.
Stop asking about what we're going to do about the national debt and start asking about who the national debt is owed to.
Stop asking about what we're going to do about the national debt and start asking about who the national debt is owed to.
Posted on 5/9/24 at 9:23 pm to RiverCityTider
quote:
The Federal Reserve has about $7 trillion in Treasury Bonds they purchased with printed money
Yea, alot of that was covid in 20-21. The money supply went way way up. There is usually an 18 to 36 month lag between that and inflation.
Since then they have been restricting the money supply. But that can't continue.
Posted on 5/9/24 at 9:27 pm to VoxDawg
quote:
The amount taken in by the Treasury is immaterial. It's all based on the US' willingness to enforce our fiat currency as the world's reserve notes under threat of force from the US Military.
Well the answer to that is we can't do that anymore. In fact, our aggressive foreign policy has caused the hold on reserve currency status to weaken further. Something like 58% of trade transactions are dollar denominated. It used to be much higher.
The US military won't save us. It's overrated anyway.
Posted on 5/9/24 at 9:34 pm to RiverCityTider
quote:
Yea, alot of that was covid in 20-21.
When Trump took office the FR balance sheet was ~$4.2 trillion.
Just before COVID the balance sheet was naturally winding down. It reached a near term low of ~3.8 trillion.
COVID happened and the FR printed money (via congressional appropriations) to bring up their balance sheet to about $7.1 trillion and that was under near ZIRP conditions.
Biden entered and with congress they kept spending to force the FR to print more and rose the balance sheet to ~$8.4 trillion.
Now the FR is trying to sell thus making bonds cheaper with higher yields which impacts all market interest rate products. It's called tightening and the FR has been able to sell off assets to bring their current balance sheet level to ~$7.4 trillion.
Currently they can't sell too fast or they will overshoot their stated interest rate policy goal.
Posted on 5/9/24 at 9:37 pm to GumboPot
quote:
Not that this is much of a consolation but the interest on the debt is a little less because the interest the Federal Reserve makes on Treasury Bonds they purchased with printed money is returned to the Treasury after expenses.
The Federal Reserve has about $7 trillion in Treasury Bonds they purchased with printed money.
Well, uh, now they are basically sending the treasury IOUs.
What a slope!
Posted on 5/9/24 at 9:42 pm to RiverCityTider
How exactly do we have debt when we print our own currency? Why do we pick and choose when we inject/remove currency from circulation? Sounds like this has been planned in advance.
Posted on 5/9/24 at 9:45 pm to RiverCityTider
quote:
there is no solution.
I have an idea! How about we have 2 of the biggest spending presidents in history run against each other again. Surely, that'll help!
Page 1 of 4
Popular
Back to top
Follow TigerDroppings for LSU Football News