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Peter1469
11-02-2013, 09:27 AM
If this bill becomes law, we will dramatically lower our debt (http://www.zerohedge.com/news/2013-10-29/congress-eliminate-debt-not-counting-it-anymore) without irritating the credit agencies.

This takes us back to the debt ceiling debate and what default really means. The MSM got it wrong.


In fact, nearly $5 trillion of the $17 trillion debt (almost 30%) is owed to intragovernmental agencies like Social Security and Medicare.



Remember, when governments get this deep in debt, someone is going to get screwed.


They may default on their obligations to their creditors, causing a crisis across the entire financial system. Or perhaps to the central bank, causing a currency crisis.


But most likely, and first, they will default on their obligations to their citizens. Whatever promises they made, including Social Security, will be abandoned.


And if you read between the lines, this new bill says it all.



Moody's doesn't care if grandma doesn't get her social security check. But they do care if T-Bill holders get screwed.

Mainecoons
11-02-2013, 11:24 AM
That's OK, it won't take the Federal government long to borrow and piss away another 5 trillion.

waltky
01-23-2017, 04:34 AM
Granny says, "Dat's right - the bill's `bout to come due an' we ain't got the money to pay it...
:angry:
Foreigners Are Dumping U.S. Debt At A Record Pace And Our $20 Trillion National Debt Is Poised To Become A Major Crisis
January 22nd, 2017


While most of the country has been focused on the inauguration of Donald Trump, a very real crisis has been brewing behind the scenes. Foreigners are dumping U.S. debt at a faster rate than we have ever seen before, and U.S. Treasury yields have been rising. This is potentially a massive problem, because our entire debt-fueled standard of living is dependent on foreigners lending us gigantic mountains of money at ultra-low interest rates. If the average rate of interest on U.S. government debt just got back to 5 percent, which would still be below the long-term average, we would be paying out about a trillion dollars a year just in interest on the national debt. If foreigners keep dumping our debt and if Treasury yields keep climbing, a major financial implosion of historic proportions is absolutely guaranteed within the next four years.


http://theeconomiccollapseblog.com/wp-content/uploads/2017/01/Dollar-Spiral-Public-Domain-460x296.jpg
Dollar Spiral - Public Domain

One of the most significant aspects of the “Obama legacy” is the appalling mountain of debt that he has left behind. As I write this article, the U.S. national debt is sitting at 19.944 trillion dollars. During Obama’s eight years, a staggering 9.3 trillion dollars was added to the national debt. When you break that number down, it comes to more than a hundred million dollars every single hour of every single day while Obama was living in the White House. In just two terms, Obama added almost as much to the national debt as all of the other presidents before him combined. What Obama and the members of Congress that cooperated with him have done to future generations of Americans is beyond criminal.

Unfortunately, hardly anyone is talking about this right now, but the consequences are about to start catching up with us in a major way. The only possible way that our game of “borrow, spend and stick future generations with the bill” can continue is if the rest of the world participates. In other words, we need them to continue to buy our debt. Unfortunately for us, a major shift is now taking place. According to Zero Hedge, the most recent numbers that we have show foreigners dumping more than 400 million dollars of U.S. debt over the past 12 months…

MORE (http://theeconomiccollapseblog.com/archives/foreigners-are-dumping-u-s-debt-at-a-record-pace-and-our-20-trillion-national-debt-is-poised-to-become-a-major-crisis)

Peter1469
01-23-2017, 05:40 AM
Mainstream and left leaning economists will take a while to process this.

We can afford this debt when the world wants USDs. Once that ends we will no longer be able to afford our debt.