The debt bubble has burst

[marke]

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.

I disagree. Standard and Poor lowered the US credit rating under Obama because the debt was a problem in spite of the amassed wealth of Americans. Maybe you remember warnings like this that keep surfacing as the US debt continues to climb:

3 reasons to fear America's massive $70 trillion debt pile | CNN Business

America's debt load is about to hit a record. The combination of cheap money and soaring debt helped fuel the decade-long economic expansion and bull market, but America's gluttony of loans could work against it if its fragile economic balance shifts.

www.cnn.com

Worsening fiscal report card​

The government could run out of money by early September, before Congress gets back from its summer break, the US Treasury Department said Friday. That is why Treasury Secretary Steven Mnuchin requested that Congress raise the debt ceiling before the summer recess. Talks between Mnuchin and Speaker of the House Nancy Pelosi have been productive, the Treasury secretary said Monday.

 

[Idolater]

I disagree. Standard and Poor lowered the US credit rating under Obama because the debt was a problem in spite of the amassed wealth of Americans. Maybe you remember warnings like this that keep surfacing as the US debt continues to climb:

3 reasons to fear America's massive $70 trillion debt pile | CNN Business

America's debt load is about to hit a record. The combination of cheap money and soaring debt helped fuel the decade-long economic expansion and bull market, but America's gluttony of loans could work against it if its fragile economic balance shifts.

www.cnn.com

Worsening fiscal report card​

The government could run out of money by early September, before Congress gets back from its summer break, the US Treasury Department said Friday. That is why Treasury Secretary Steven Mnuchin requested that Congress raise the debt ceiling before the summer recess. Talks between Mnuchin and Speaker of the House Nancy Pelosi have been productive, the Treasury secretary said Monday.

We're in no danger of defaulting on anything, I disagree. And former President Obama was dealing with the aftermath of the cash crunch on the banking system in the late 2000s, which was quickly alleviated by the Fed by printing like two trillion USD Federal Reserve Notes (they expanded the monetary base by like a factor of three or four). Don't you remember that? Took care of the problem.

 

[marke]

We're in no danger of defaulting on anything, I disagree. And former President Obama was dealing with the aftermath of the cash crunch on the banking system in the late 2000s, which was quickly alleviated by the Fed by printing like two trillion USD Federal Reserve Notes (they expanded the monetary base by like a factor of three or four). Don't you remember that? Took care of the problem.

Lefties don't get it. When the government overspends it increases its debt and that debt has to be paid back. Because Congress had no realistic plan in 2011 to pay back the debt S&P was forced to lower the US credit rating. If paying back the debt was unimportant then S7P should have never lowered the US credit rating. If the debt does not matter then Congress should not have to fight every year or two to raise the debt ceiling.

 

[Gary K]

Lefties don't get it. When the government overspends it increases its debt and that debt has to be paid back. Because Congress had no realistic plan in 2011 to pay back the debt S&P was forced to lower the US credit rating. If paying back the debt was unimportant then S7P should have never lowered the US credit rating. If the debt does not matter then Congress should not have to fight every year or two to raise the debt ceiling.

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https://governance40.com/wp-content/uploads/2018/11/Troops-Trolls-and-Troublemakers.pdf

 

[Gary K]

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.

I have more to add to this. Let's say we have 2 students looking to get a student loan. One is a computer science major the other is a fine arts major. Potential income for a computer science major can run from $100,000 t0 $250,000 a year. A fine arts major is going to earn maybe 1/4 of what the computer science major is going to earn. However both are offered the same ability to borrow as all either of them are required to show is acceptance into a college/university.

If both were working in their chosen professions the fine arts major is not going to qualify for anywhere near the size of a loan the computer science guy will. Their credit is based upon their income. So why as students can they both borrow the same amount of money? That is predatory lending at it's worst. It's something only a psychopath would do to another human being as it is cruel beyond imagination. That fine arts guy is going to be impoverished for the rest of his life while the computer science guy may struggle some right out of school his lifetime earnings are such that he will pay off his loan and retire with a hefty retirement fund.

Why are there no protections for the student borrowers written into the legislation as kids are the most vulnerable borrowers to manipulation that there are? The only protections are for lenders and government and once you take a federally guaranteed loan you cannot get out from under it other than through becoming disabled and having no earning power at all, and then your case is reviewed every 5 years for life.

The injustice of this really bothers me.

 

[Gary K]

In Africa the problems created by socialist economic problems have done to a lot of countries there what those same economic policies are doing to the US.

They have worsened poverty rates as has always been the case as they create high levels of debt, high taxation rates, worsening poverty, increasing dependency on government, etc.... All of these things kill economies and impoverish the common man which is exactly the opposite of what the collectivists promise.

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