The problem is government and it's unsatisfied need to control everything. That adds up to big costs. It doesn't matter even if the tax receipts suddenly doubled. Spending would double also. Money of any kind has no real value other than what humanity places upon it. Take your dollars, gold, bitcoin and diamonds to another planet and see how much it buys.
150 years ago, there were much fewer outlets for consumer consumption. Fast forward to the 2020's and there is an endless force of marketing idiots begging for everyone to spend themselves to death. It's the same with the government...there is a bottomless pit at the end of all that spending that will never get filled. There is always another hand needing a handout and another place to spend a dollar. It's why government always fails.
Observe carnage from afar with your nest egg safely ensconced outside the meddling grasp of the kleptocrats, whilst having a bit of sun and enjoying a tasty adult beverage.
Only fools believe the ship can be saved from sinking because only fools believe, "this time it's different because smart people are in charge".
No fool, it's not different this time as any other time in world history the sociopaths among us are given a monetary 'printing press' and absolute power to line their pockets with bribes and outright theft of the public treasury. The end is the same and it just so happens our generation will be alive to witness this particular implosion of this particular historical empire.
As Herbert Stein explained many years ago, that which cannot go on will stop. The spending spree will stop, although there will be much kicking and screaming when it does. we have already begun to see the bond vigilantes reassert themselves and I expect they will do so for a while. of course, just like post WWII, we need to look for YCC with the Fed expanding its balance sheet while holding yields below a given number, 2% or 3% or something. then, high nominal GDP and high inflation will allow the debt to be subsumed over time. but it will be painful for most. the dollar will definitely suffer, and stuff that hurts when you drop it on your foot will be the winner
Yep, the good old US of A is flat broke. You would have to pay someone to take it off your hands.
https://truthaddict.substack.com/p/the-usa-is-now-officially-worthless
https://truthaddict.substack.com/p/the-great-reset-is-the-great-taking
The problem is government and it's unsatisfied need to control everything. That adds up to big costs. It doesn't matter even if the tax receipts suddenly doubled. Spending would double also. Money of any kind has no real value other than what humanity places upon it. Take your dollars, gold, bitcoin and diamonds to another planet and see how much it buys.
150 years ago, there were much fewer outlets for consumer consumption. Fast forward to the 2020's and there is an endless force of marketing idiots begging for everyone to spend themselves to death. It's the same with the government...there is a bottomless pit at the end of all that spending that will never get filled. There is always another hand needing a handout and another place to spend a dollar. It's why government always fails.
I think Congress should empower the Fed to hike interest rates when debt reaches 90% of GDP. This anticipated hike would be the stick needed to
Turn around spending (as in stop me before I kill again!).
Prepare your Plan B.
Execute prior to inevitable implosion.
Observe carnage from afar with your nest egg safely ensconced outside the meddling grasp of the kleptocrats, whilst having a bit of sun and enjoying a tasty adult beverage.
Only fools believe the ship can be saved from sinking because only fools believe, "this time it's different because smart people are in charge".
No fool, it's not different this time as any other time in world history the sociopaths among us are given a monetary 'printing press' and absolute power to line their pockets with bribes and outright theft of the public treasury. The end is the same and it just so happens our generation will be alive to witness this particular implosion of this particular historical empire.
Ashes to ashes, dust to dust.
As Herbert Stein explained many years ago, that which cannot go on will stop. The spending spree will stop, although there will be much kicking and screaming when it does. we have already begun to see the bond vigilantes reassert themselves and I expect they will do so for a while. of course, just like post WWII, we need to look for YCC with the Fed expanding its balance sheet while holding yields below a given number, 2% or 3% or something. then, high nominal GDP and high inflation will allow the debt to be subsumed over time. but it will be painful for most. the dollar will definitely suffer, and stuff that hurts when you drop it on your foot will be the winner
I just file "interest on the federal debt" in the folder marked, Unconstitutional.
Government will cut spending 50% next year. And continue cutting. Taxes will also go up. This will get solved.
GAAP Debt is over $250T. GAAP Deficits are over $7T. Someone is gonna be in a lot of pain.
https://twitter.com/CNBCFastMoney/status/1708955044064673885
Sooner rather than later. The US will need to keep raising rates as the government's credibility evaporates.