The debt bubble has burst

[Gary K]

Sixty days ago Bill Holter said our economy would be destroyed within that time line. Since then the FED has doubled interests rates. Increasing interest rates has always created shortages of credit and created financial contractions. So what effect is doubling interest rates in 10 days going to do? Holter is predicting a Mad Max scenario in as our financial system is already on extremely shaky so the effects are going to be greatly magnified. If you have not already stocked up on essentials such as food and water it's time to do so immediately.

This is going to be the largest transfer of value from private citizens to bankers in the history of the world.

Game Over, They’re Pulling the Plug – Bill Holter | Greg Hunter’s USAWatchdog

By Greg Hunter’s USAWatchdog.com Precious metals expert and financial writer Bill Holter said in early April that he thought we did not have much time until the financial meltdown started. He gave it 60 days. Two months later, the meltdown started in earnest right on time. The world is at debt...

usawatchdog.com

 

[Idolater]

The Fed's going to need to increase 750 basis points rather than 75 in order to make any difference in the next 6-9 months.

 

[Gary K]

The Fed's going to need to increase 750 basis points rather than 75 in order to make any difference in the next 6-9 months.

The more they fiddle with interst rates the worse the problems are going to get. We're where we are because of their actions over the last 110 plus years as they have ecouraged inflation: the devaluation of our currency. Zero percent interest rates created a massive debt bubble because it encouraged the creation of huge amounts of debt. Now they are doing exactly the opposite. They are making it impossible to even pay the interest on the loans and bankruptcy rates are going to skyrocket. How much is an unenforceable contract worth? Nothing. Zero. Zip. Nada. When someone can't pay their bills how do you squeeze blood out of a turnip?

 

[ok doser]

The more they fiddle with interst rates the worse the problems are going to get. We're where we are because of their actions over the last 110 plus years as they have ecouraged inflation: the devaluation of our currency. Zero percent interest rates created a massive debt bubble because it encouraged the creation of huge amounts of debt. Now they are doing exactly the opposite. They are making it impossible to even pay the interest on the loans and bankruptcy rates are going to skyrocket. How much is an unenforceable contract worth? Nothing. Zero. Zip. Nada. When someone can't pay their bills how do you squeeze blood out of a turnip?

I ran across a story earlier today that I didn't think to save. Poll results showing that 50% of American voters are in favor of forgiving all student loans.

 

[Idolater]

The more they fiddle with interst rates the worse the problems are going to get. We're where we are because of their actions over the last 110 plus years as they have ecouraged inflation: the devaluation of our currency. Zero percent interest rates created a massive debt bubble because it encouraged the creation of huge amounts of debt. Now they are doing exactly the opposite. They are making it impossible to even pay the interest on the loans and bankruptcy rates are going to skyrocket. How much is an unenforceable contract worth? Nothing. Zero. Zip. Nada. When someone can't pay their bills how do you squeeze blood out of a turnip?

The Fed fixed inflation like this in the early 1980s with much higher interest rates than today. I'm just saying they're probably going to wind up doing it again, just to get inflation under control. No one has a crystal ball, but don't we have rearview mirrors?

 

[Gary K]

I ran across a story earlier today that I didn't think to save. Poll results showing that 50% of American voters are in favor of forgiving all student loans.

I'm not sure of where I stand on this because while someone may be 21 it doesn't mean they understand economics or what they are doing to themselves a student loan debt is pushed at them hard. Did they take on contracts to repay? Yes, but at the same time they didn't understand the consequences of their actions.

The same thing has been done to a lot of adults with the manipulation of interest rates. As soon as the bubble bursts and interest rates rise they are forced out of their homes and often into bankruptcy. No matter how deep their ignorance of finances is I have to feel for them as our learning institutions have all failed them by not teaching them practical economics and they are constantly bombarded by our corrupt media as to how it is their "right" to go deeply into debt for the "American dream".

The psychopaths in banking, government, and media are just beyond their ability to understand.

 

[Gary K]

The Fed fixed inflation like this in the early 1980s with much higher interest rates than today. I'm just saying they're probably going to wind up doing it again, just to get inflation under control. No one has a crystal ball, but don't we have rearview mirrors?

No they didn't. Nothing has been "fixed" it has just been kicked down the road rarher than dealt with the same way Calvin Coolidge did. They called him the "do nothing" President becuase he didn't play the stupid game. He allowed the crash to happen and within a matter of months the economy had worked it's way out of trouble and was once again on a solid footing. We have not had a President since that has had the same kind of integrity.

It's the end of kicking the can down the road.

 

[Idolater]

No they didn't. Nothing has been "fixed" it has just been kicked down the road rarher than dealt with the same way Calvin Coolidge did. They called him the "do nothing" President becuase he didn't play the stupid game. He allowed the crash to happen and within a matter of months the economy had worked it's way out of trouble and was once again on a solid footing. We have not had a President since that has had the same kind of integrity.

It's the end of kicking the can down the road.

Doubtful. Target is 1-3% inflation, right? If they get it back down there we're in for another decade or more of smooth sailing. But they have to get inflation under control as quickly as possible since everybody's money is plummeting in value every day they don't. Can't have that.

 

[Gary K]

Doubtful. Target is 1-3% inflation, right? If they get it back down there we're in for another decade or more of smooth sailing. But they have to get inflation under control as quickly as possible since everybody's money is plummeting in value every day they don't. Can't have that.

https://www.statista.com/statistics/1032048/value-us-dollar-since-1640/

All the Fed has ever done is destroy the value of the dollar. That anyone would imagine them doing any differently now is beyond me.

 

[Gary K]

I guess it is beyond anyone's imagination that we are up against organized psychopaths. Tell me, what kind of people murder people wholesale while claiming to be benefactors of the human race? Explain this to me. And, explain to me what kind of people destroy the economies of every nation on earth while claiming to benefit those they are systematically starving to death?

 

[marke]

I ran across a story earlier today that I didn't think to save. Poll results showing that 50% of American voters are in favor of forgiving all student loans.

80% of all greedy Americans are in favor of getting free government money?

 

[Idolater]

https://www.statista.com/statistics/1032048/value-us-dollar-since-1640/

What's the point of this? Note around 1980 on the chart, right at the end, the slope was steeply downward, then suddenly it stopped going down to quickly and was only gently going downward after that, right up to the present; that was when the Fed raised interest rates dramatically in the early 1980s, to stem inflation, and it worked. According to your chart.

All the Fed has ever done is destroy the value of the dollar. That anyone would imagine them doing any differently now is beyond me.

The Fed halted inflation in the early 1980s with sudden steep increases in interest rates. Not +0.75% more like +7.50% Mortgage rates in the double digits not 6%.

Aren't you familiar with any of this?

 

[marke]

What's the point of this? Note around 1980 on the chart, right at the end, the slope was steeply downward, then suddenly it stopped going down to quickly and was only gently going downward after that, right up to the present; that was when the Fed raised interest rates dramatically in the early 1980s, to stem inflation, and it worked. According to your chart.


The Fed halted inflation in the early 1980s with sudden steep increases in interest rates. Not +0.75% more like +7.50% Mortgage rates in the double digits not 6%.

Aren't you familiar with any of this?

The debt to GDP ratio got as high as 51% in the 1980s. The debt to GDP ratio during the Trump years ranged between 105% and 107%. The debt to GDP under Biden has ranged from 124% to 129%. These ratios are unsustainable no matter how bright a spin anyone wants to put on them.

 

[Gary K]

What's the point of this? Note around 1980 on the chart, right at the end, the slope was steeply downward, then suddenly it stopped going down to quickly and was only gently going downward after that, right up to the present; that was when the Fed raised interest rates dramatically in the early 1980s, to stem inflation, and it worked. According to your chart.


The Fed halted inflation in the early 1980s with sudden steep increases in interest rates. Not +0.75% more like +7.50% Mortgage rates in the double digits not 6%.

Aren't you familiar with any of this?

marke answered you well. The government has just kept kicking the can down the road until the economy has no way to ever recover. It's impossible to pay off more than $200 trillion in debt, plus all the money stolen from the government. If we went to a balanced budget this instant and began actually paying down our debt at a trillion dollars a year it would take at least a half a millenium to pay it off. This is the great reset.

 

[Right Divider]

I ran across a story earlier today that I didn't think to save. Poll results showing that 50% of American voters are in favor of forgiving all student loans.

95% of American voters are as dumb as a box of rocks.

 

[Gary K]

95% of American voters are as dumb as a box of rocks.

I just have to laugh. That has been one of my favorite sayings since my high school days.

 

[Gary K]

A perfect storm in banking is brewing as central banks are already bankrupt as they owe 50 times what is on their asset sheets.

Now that interest rates are rising with much further to go, the global banking system faces a crisis on a scale like no other in history. Central banks loaded with financial securities acquired through QE face growing losses, and their balance sheet liabilities are now significantly greater than their assets — a condition which in the private sector is termed bankruptcy. They will need to be recapitalised urgently to retain credibility.

A Perfect Storm in Banking Is Brewing - LewRockwell

Now that interest rates are rising with much further to go, the global banking system faces a crisis on a scale like no other in history. Central banks loaded with financial securities acquired through QE face growing losses, and their balance sheet liabilities are now significantly greater than...

www.lewrockwell.com

 

[Idolater]

A perfect storm in banking is brewing as central banks are already bankrupt as they owe 50 times what is on their asset sheets.

A Perfect Storm in Banking Is Brewing - LewRockwell

Now that interest rates are rising with much further to go, the global banking system faces a crisis on a scale like no other in history. Central banks loaded with financial securities acquired through QE face growing losses, and their balance sheet liabilities are now significantly greater than...

www.lewrockwell.com

You deserve "lewrockwell-dot-com". You have low standards. Be careful what you wish for.

 

[marke]

You deserve "lewrockwell-dot-com". You have low standards. Be careful what you wish for.

Do you think a major fiscal change is not coming to the out-of-control debt?

 

[Idolater]

Do you think a major fiscal change is not coming to the out-of-control debt?

I don't know what you mean here Marke, but this debt is not out of control. We Americans collectively possess 150 trillion USD in net worth, we can afford to borrow a sixth, a fifth, even a third of that if we have to. Have you seen Japan's sovereign debt to GDP? Do you think Japan's about to collapse? They would have already collapsed under their debt load, if there's anything to fear concerning ours.