Looming debt crisis?

May 12, 2019, 12:04 PM

Lol. It's been a crisis for years and years. Decades really. It isn't "solved" when Congress raises the debt ceiling and issues a budget. It's just kicked further down the road.

The real debt CRISIS will happen if Trump actually makes America great again. And by that I mean real wages increasing, more money getting into people's pockets, and the resulting inflation. Real wages have been FLAT for decades really, and that's a very overlooked stat, for good reason. We dno't need German/Venezuela hyperinflation to cause a crisis. We need good old American inflation like happened in the United States in 1941, 1942, 1946, 1947, 1950, 1951, 1969, 1973, 1974, 1975, 1977, 1978, 1979, 1980, 1981, and most "recently" 1990. Those are the times when inflation has topped 6%, and the federal landing rate has topped 7-8%. Our economic policy has been #### bent since the 1980's on keeping inflation below 4%, so debt stays cheap. And we've thrived on that debt. It's been done through the bad trade deals Trump talks about, and with illegal immigration. Each cheapening the price of goods and labor respectively.

No, there's a crisis inherent in our debt. You saw it recently when the FED increased interest rates from zero to 2.5%. In fact, when it increased from 1.5% to 2.5% within a single year, that meant the government spent about $110 BILLION more just to service our existing debt, which we paid off with more debt because we don't have a balanced budget. Now imagine a federal lending rate of 5-6% which has happened many, many times before. That corresponds to an inflation rate of maybe 3-4%. Now imagine 8% inflation, also happened MANY times, and a federal lending rate of say 10%. if 1% is $110 Billion, what is 10%? Get it? Anyway, here's a naieve and short sighted article about politics and nothing really important. It totally fails to address the real danger we face. It's not Congress not making a deal, it's if our economy heats up. We can't be great again. If we are, we crash. That's what debt does.

https://www.cnn.com/2019/05/11/politics/congress-debt-ceiling/index.html

Washington is flirting with a debt crisis. No one has a plan to stop it

The US government is hurtling toward a potential financial crisis, and no one in Washington seems to know how to stop it.

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Looming debt crisis?

everyone is in debt up to their eyeballs

no worries

I will never understand how Trump slashed so many budgets and,

You don't get the donations without funnelling money

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