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Errol

The World Won't Buy Unlimited U.s. Debt

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Schiff's latest piece for the Wall Street Journal

The Wall Street Journal - Peter Schiff's article

one would hope that Mr. Obama can see that, just like all other bubbles in world history, the U.S. debt bubble will end badly. Taking on more debt to maintain spending is neither sacrificial nor beneficial.

"The root problem is not that America may have difficulty borrowing enough from abroad to maintain our GDP, but that our economy was too large in the first place. America's GDP is composed of more than 70% consumer spending. For many years, much of that spending has been a function of voracious consumer borrowing through home equity extractions (averaging more than $850 billion annually in 2005 and 2006, according to the Federal Reserve) and rapid expansion of credit card and other consumer debt. Now that credit is scarce, it is inevitable that GDP will fall."

What are these figures in the UK?

Edited by pilchardthecat

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"The root problem is not that America may have difficulty borrowing enough from abroad to maintain our GDP, but that our economy was too large in the first place. America's GDP is composed of more than 70% consumer spending. For many years, much of that spending has been a function of voracious consumer borrowing through home equity extractions (averaging more than $850 billion annually in 2005 and 2006, according to the Federal Reserve) and rapid expansion of credit card and other consumer debt. Now that credit is scarce, it is inevitable that GDP will fall."

What are these figures in the UK?

Think about 30%, but that cant be right must be higher if the US is at 70%, although a McD & Subway every half a mile as in most of the US Cities is a hell of a lot more than the UK does have.

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Guest theboltonfury
"The root problem is not that America may have difficulty borrowing enough from abroad to maintain our GDP, but that our economy was too large in the first place. America's GDP is composed of more than 70% consumer spending. For many years, much of that spending has been a function of voracious consumer borrowing through home equity extractions (averaging more than $850 billion annually in 2005 and 2006, according to the Federal Reserve) and rapid expansion of credit card and other consumer debt. Now that credit is scarce, it is inevitable that GDP will fall."

What are these figures in the UK?

short odds on an American default this year. They are selling thier debt cheaper than ever before

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Schiff's latest piece for the Wall Street Journal

The Wall Street Journal - Peter Schiff's article

one would hope that Mr. Obama can see that, just like all other bubbles in world history, the U.S. debt bubble will end badly. Taking on more debt to maintain spending is neither sacrificial nor beneficial.

Yes they will buy US debt.

I take the liberty of not expaining why since you did the same.

Edited by threetimesdead

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I take the liberty of not expaining why since you did the same.

see the video in my sig for a 30mins explanation of one of the main issues why people will stop buying.

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see the video in my sig for a 30mins explanation of one of the main issues why people will stop buying.

Everything in your sig is known to the market and yet the default risk of US debt is less than 1% per year (over the next 5 years) according to CDS rates.

What makes people so confident?

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Yes they will buy US debt.

I take the liberty of not expaining why since you did the same.

He didn't say they woudln't buy it. He said that they would not buy unlimited amounts. Read more carefully.

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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