Debtonomics

[dfens]

My observation is that very few people understand just how dependent our system is on debt, and how debt affects our system.

Banks love debt - after all, their job is to generate it, and if it can't be paid back, to transfer the loss to the government. Business loves debt - without debt, there are no economies of scale. Debt allows businesses to grow, expand, produce more. Governments love debt - they can make promises without having to tax. People love debt - it allows them to have something now, and pay for it later at some unspecified date.

The problem is that at some point in time, and nobody knows when, but we have seen so many warnings recently, the debts just can't be paid back. Either we have a reset, a jubilee of sorts, or the losses are distributed among the people, and we go to world war. The latter seems to be what is happening, because one thing about human beings is that we never learn from history, and we never actually think that the day comes when debt must be paid.

5000 years of history, and we haven't learned a thing.

 

[AnCap'n_Murica]

With the Fed and its FRNs, debt is wealth. Maybe Orwell could have added that one.

 

[Pete7469]

Wait....

I still recall how bed wetters caterwauled during the Bush years over deficits and debt. They pissed and moaned incessantly for the entire 8 fucking years about how Bush's spending was going to destroy the country.

They elected a meat puppet faggot that doubled the debt, but now that he's on his way out, all of a fuckin sudden the debt is an issue again because they don't want Trump's agenda to be funded at all.

It's stunning how quickly libturd parasites can become frugal economic scholars after reading their barking orders from Media Matters.

 

[Toddsterpatriot]

My observation is that very few people understand just how dependent our system is on debt, and how debt affects our system.

Banks love debt - after all, their job is to generate it, and if it can't be paid back, to transfer the loss to the government. Business loves debt - without debt, there are no economies of scale. Debt allows businesses to grow, expand, produce more. Governments love debt - they can make promises without having to tax. People love debt - it allows them to have something now, and pay for it later at some unspecified date.

The problem is that at some point in time, and nobody knows when, but we have seen so many warnings recently, the debts just can't be paid back. Either we have a reset, a jubilee of sorts, or the losses are distributed among the people, and we go to world war. The latter seems to be what is happening, because one thing about human beings is that we never learn from history, and we never actually think that the day comes when debt must be paid.

5000 years of history, and we haven't learned a thing.

Banks love debt - after all, their job is to generate it, and if it can't be paid back, to transfer the loss to the government.

If I borrow money from JPMorgan and don't repay, how is the loss transferred to the government?

 

[Grandma]

Wait....

I still recall how bed wetters caterwauled during the Bush years over deficits and debt. They pissed and moaned incessantly for the entire 8 fucking years about how Bush's spending was going to destroy the country.

They elected a meat puppet faggot that doubled the debt, but now that he's on his way out, all of a fuckin sudden the debt is an issue again because they don't want Trump's agenda to be funded at all.

It's stunning how quickly libturd parasites can become frugal economic scholars after reading their barking orders from Media Matters.

The Bushreich failed to list any of their war debt, so the 3 trillion dollars Dubya blew in the Mideast magically appeared after he was safely out of office.

Remember what happened in September 2008 - while Dubya was still in office?

Remember?

Bush's spending and policies nearly destroyed not just the country, but the whole fookin' world. It threw us into a global depression.

Remember that?

I remember.

 

[waltky]

So does debt increase or decrease...

... the circulation of money?

 

[Toddsterpatriot]

Wait....

I still recall how bed wetters caterwauled during the Bush years over deficits and debt. They pissed and moaned incessantly for the entire 8 fucking years about how Bush's spending was going to destroy the country.

They elected a meat puppet faggot that doubled the debt, but now that he's on his way out, all of a fuckin sudden the debt is an issue again because they don't want Trump's agenda to be funded at all.

It's stunning how quickly libturd parasites can become frugal economic scholars after reading their barking orders from Media Matters.

The Bushreich failed to list any of their war debt, so the 3 trillion dollars Dubya blew in the Mideast magically appeared after he was safely out of office.

Remember what happened in September 2008 - while Dubya was still in office?

Remember?

Bush's spending and policies nearly destroyed not just the country, but the whole fookin' world. It threw us into a global depression.

Remember that?

I remember.

The Bushreich failed to list any of their war debt, so the 3 trillion dollars Dubya blew in the Mideast magically appeared after he was safely out of office.

Wow! What a moronic claim. You think a supplemental spending bill doesn't add to annual deficits or national debt just like any other spending?

I know liberals are bad at math, but I'm still surprised by your stupidity.

 

[Jomama]

Jeez, 7 posts in and this has devolved to stupidity. My career is leveraged buyouts and corporate debt restructuring so the topis is something I enjoy discussing.

I too question how "banks transfer losses to govt"? And don't say tax writeoffs, that's a phoney answer.

Pete, despite watering down his points with name calling, makes a point - why is Bush and Trump debt worse than Obama debt? I don't think it is. More debt is always worse. The breaking point is our ability to service it and that is dependent on only two factors (amount and rate of interest). I dont think we can afford more fiscal stimulus but I'm a debt hawk.

Stockman (my favorite debt hawk) was on CNBC yesterday talking about the low odds of fiscal stimulus happening under Trump, fear of interest rates, impotence of future monetary stimulus, etc. Worth watching.

.

 

[EdwardBaiamonte]

we never actually think that the day comes when debt must be paid.
.

what? we just had a huge debt/ housing crisis and came through it fine. Everyone learned from it. If it were to happen again we'd know to act faster and have even less damage.

 

[Jomama]

It will never be the same twice. Generals and Economist are always fighting the next war. We don't know how to deal with Japan level debt, which is where we're heading. Maybe President Elect Wildcard will solve it, or maybe not. If not, I dont believe we are prepared to deal with it. I am but the Fed is not.

 

[12icer]

You don't really want to know the truth about this it would break the dimshits hearts, and prove them super wrong on everything again. They are just too shallow and self absorbed to be able to rationalize any type of multiplanic problem.

And as far as "SOLVING it, TOO LATE, the oteam intent was to take it past repair and crash it. On the day he was reelected his open mic message to Putin was instituted, the G8 and theIMF closed the door, and the countdown started with Chinas currency upgrade the eastern block alliance cemented the ability to take veto power in the world trading currency selection. That took away our position as the only entity in the IMF with enough economic power to have veto power and hold the Dollar up as the primary trading currency of the world. So guess what happens at the next meeting when our representative tries to keep the dollar in place They can veto it. That will open the floor for the voting countries to set a currency that is not so debt laden and BZZZZZ the dollar is worth about .001 AMF & not HD.