The Leverage Problem

Hence debt runs the economy. Fractional Reserve Banking is why the crash will come.There is more debt than there is money.
Yes, debt is the spending of tomorrow's income today.

Trump's fake tax cut stole $1.5 trillion out of the pockets of the unborn.

You are a very limited thinker G. Your thinking is stunted by your myopic hatred. Adults grow out of that.
Horseshit.

I watched the pseudocons wail and moan for eight years about Obama's overspending, and then suddenly go totally radio silent when Trump took office and promptly began doubling the deficit.

So fuck you, asshole.

That is the problem with belonging to a particular political party- you lose objectivity. Trump got elected by pandering to un and under employed people. He promised tariffs (horrible idea) to create American manufacturing jobs and a trade surplus. Trade deficits are generally an indication of a wealthy and healthy country.

Anybody confused needs to watch the short clip by a very good economist.



Trade deficits are generally an indication of a wealthy and healthy country.

Like Greece.....wait what?


Generally- that means there are exceptions. Take it up with Milton Friedman if you don’t understand.
 
Yes, debt is the spending of tomorrow's income today.

Trump's fake tax cut stole $1.5 trillion out of the pockets of the unborn.

You are a very limited thinker G. Your thinking is stunted by your myopic hatred. Adults grow out of that.
Horseshit.

I watched the pseudocons wail and moan for eight years about Obama's overspending, and then suddenly go totally radio silent when Trump took office and promptly began doubling the deficit.

So fuck you, asshole.

That is the problem with belonging to a particular political party- you lose objectivity. Trump got elected by pandering to un and under employed people. He promised tariffs (horrible idea) to create American manufacturing jobs and a trade surplus. Trade deficits are generally an indication of a wealthy and healthy country.

Anybody confused needs to watch the short clip by a very good economist.



Trade deficits are generally an indication of a wealthy and healthy country.

Like Greece.....wait what?


Generally- that means there are exceptions. Take it up with Milton Friedman if you don’t understand.


We have wealthy and healthy countries with trade deficits, like the US.
We have wealthy and healthy countries with trade surpluses, like Japan and Germany.
We have poor and sickly countries with trade deficits, like Greece.
We have poor and sickly countries with trade surpluses, like Russia.

Thanks for the Friedman clip, he's awesome!
Not sure that clip backs your "wealthy and healthy" comment.
 
Private/corporate debt is at record high numbers, kids. Way, way higher than before the 2007-2009 crash. Way higher.

So is nominal GDP.
Allow me to educate you on the debt-to-GDP ratio.

Private and public debt have grown much faster than GDP. With a lot of help from Trump, who has doubled our deficits.



saupload-428250-13363801587809994-Michael-Clark.png
Private and public debt have grown much faster than GDP.

saupload-428250-13363801587809994-Michael-Clark.png


And your proof is a chart that shows private debt/GDP declining?
It's a chart showing the debt-to-GDP ratio is getting worse. Do you need it explained to you?
 
Hence debt runs the economy. Fractional Reserve Banking is why the crash will come.There is more debt than there is money.
Yes, debt is the spending of tomorrow's income today.

Trump's fake tax cut stole $1.5 trillion out of the pockets of the unborn.

You are a very limited thinker G. Your thinking is stunted by your myopic hatred. Adults grow out of that.
Horseshit.

I watched the pseudocons wail and moan for eight years about Obama's overspending, and then suddenly go totally radio silent when Trump took office and promptly began doubling the deficit.

So fuck you, asshole.

That is the problem with belonging to a particular political party- you lose objectivity. Trump got elected by pandering to un and under employed people. He promised tariffs (horrible idea) to create American manufacturing jobs and a trade surplus. Trade deficits are generally an indication of a wealthy and healthy country.

Anybody confused needs to watch the short clip by a very good economist.



Trade deficits are generally an indication of a wealthy and healthy country.

Like Greece.....wait what?

Greece's problem is not a trade deficit. Greece's problem is its debt-to-GDP ratio.

In short, too much debt. They borrowed way too much money on the faith and credit of the EU. They cheated to get into the EU, and thus got a big credit bump they didn't deserve.
 
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It was mentioned earlier that the Fed (those rascally international Jewish bankers) creates money. However, the End-the-Fed tards are ignorant of the fact the Fed also destroys money when loans/bonds/credit are paid back.

They are also ignorant that money is created without the federal reserve system by way of collateral chains. And this is where things get very tricky.

If the underlying asset backing the collateral chain should suddenly decline in value, for whatever reason, this can and does cause a literal ripple all along the chain and often causes an implosion at the weakest link in that chain.

This is what happened in 2008.

This is also what did in LTCM in 1998.
 
Private/corporate debt is at record high numbers, kids. Way, way higher than before the 2007-2009 crash. Way higher.

So is nominal GDP.
Allow me to educate you on the debt-to-GDP ratio.

Private and public debt have grown much faster than GDP. With a lot of help from Trump, who has doubled our deficits.



saupload-428250-13363801587809994-Michael-Clark.png
Private and public debt have grown much faster than GDP.

saupload-428250-13363801587809994-Michael-Clark.png


And your proof is a chart that shows private debt/GDP declining?
It's a chart showing the debt-to-GDP ratio is getting worse. Do you need it explained to you?

It's a chart showing the debt-to-GDP ratio is getting worse. Do you need it explained to you?

Yes.

Private/corporate debt is at record high numbers, kids. Way, way higher than before the 2007-2009 crash. Way higher.

upload_2019-1-16_14-19-52.png


Do I need to explain to you that a chart showing private debt dropping from over 300% of GDP before the crash to about 250% of GDP isn't helping your claim.
 
Yes, the crash when it comes, will again somehow be poor people's fault.
And we will yet again for some reason through fascism have to support the to big to fail corporations.

The tea party protest started as a protest against bailing out 'too big to fail'. It was the left-wing that supported such a move, which you can see repeated routinely here on this forum as "It prevented a depression!".

It was only the Conservative Caucus in the house that proposed an alternative to the bailout.

A group of conservative Republicans in the House of Representatives offered a mortgage insurance plan on Thursday as an alternative to the Bush administration’s $700-billion Wall Street bailout.

Conservative Republicans offer bailout alternative | Reuters
Where was the left-wing alternative that didn't involve a bailout?

There was none. They support it.
 

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