Per the article, “if something cannot go on forever, it will stop.” No one knows when it will stop, but it will.
We have World War level debt...without a world war happening...and likely a world war is coming. What then?
Will we service our debt with inflated dollars? I assume the dollar will lose its reserve status if we go crazy "printing" it.
What does this mean for the US government? Will it survive? France went from a world power to collapse and revolution, partly due to debt issues. We seem pretty divided now. One wonders if we can set aside differences and focus on saving the Constitution.
Perhaps more importantly, what does this mean for the common man? How can he prepare? Buy gold? I'm starting to wonder how much of my wealth should be put into non-dollar-based savings forms.
Obviously, the best scenario is that the Democrats agree to cut (and stop taking measures to slow the economy, like slowing down non-renewable energy and reduce regulations), and second best scenario is the Republicans agree to raise taxes (I say second best, because increased taxes will put a greater drag on the economy, and if both parties are pulling down the economy, things will collapse very quickly). But, I think we all know none of that will happen. So, it seems prudent to think about how to prepare for the breaking point which seems inevitable.
[Bloomberg article is behind a paywall, so I'm linking to a Yahoo Finance version of it.]
Link: Bloomberg: A Million Simulations, One Verdict for US Economy: Debt Danger Ahead
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Let's keep slowing down the economy with regulations. Let's keep printing money to spend on liberal and conservative causes...so we raise rates to slow inflation...so the debt become even less manageable.
I don't see this changing.
the solutions are well known....hopefully, we won't have DJT in the WH and thus allow the rational Reps and Dems to come together, just as the Senate did on the bipartisan immigration bill that Trump put a stop to.
Link: https://www.investopedia.com/financial-edge/0611/june-20-5-ways-the-u.s.-can-get-out-of-debt.aspx
I'd like to see what percentage of the debt is a result of bipartisan spending bills, probably most.
House and Senate representatives to follow that example and make progress on the debt. One thing we must spend on is alternative energy sources for Fossil Fueled heat and power...(see J.P. Morgan's view of future Oil Prices...and why they're projected to keep rising).
Link: https://www.jpmorgan.com/insights/global-research/commodities/energy-supercycle
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and there’s no reason why, with the elimination of MAGAs that we can’t continue.
to help with the lost war effort. Maybe the loss can be put off until after the Fall election.
the debt would be manageable. If the borrower’s output is good then debt can be managed.
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Debt will likely not be an election issue, which really is amazing to contemplate.
National media studiously ignores the issue until a debt ceiling is approached...and then just lambastes the party that doesn't want to increase debt...and then goes back to ignoring it once the parties agree to take on more debt.
I will vote for any candidate who will cut spending on everything...and I mean everything...and will release restrictions on energy and the economy. It is the only way. Everything the government spends on is important to somebody, so we must cut everything so everyone feels the pain. We need a robust free market economy to survive (not one driven by government spending); we need to cut spending to survive. The world will be a better place if the United States survives and maintains its strength.