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  US debt surpasses historical $20 trillion

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To summarise the article:

  • The United States has now officially accumulated a $20 trillion debt.
  •  This is  over $167,000 per tax payer.
  • Total American debt (the combination of government, business, mortgage, and consumer debt) is approaching $68 trillion.

That $68 trillion equates to $567,800 per tax payer, how can there not be complete panic over the complete failure of the capitalist system. Surely no one can think it is possible to pay this back. 

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24 minutes ago, Slimline said:

Translation: don't bother with a pension, spend your cash, enjoy your life. The financial system it destined to fail.

Doesn't that mean you waking up on your 66th birthday (in my case) without so much of a pot to go wee wee in ?

Edited by council dweller

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1 minute ago, council dweller said:

Doesn't that mean you waking up on your 66 birthday (in my case) without so much of a pot to go wee wee in ?

Pretty much. But if you've still got the pot you may be able to stretch to a Freddy ?

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6 minutes ago, council dweller said:

My bet is that we`ll get into the german 1945/1946 situation.....a currency reset in other words.. I`m prepped for this.....Meanwhile eat drink and be merry.

OK besides spam and shotgun carts how are we meant to prepare for that?

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31 minutes ago, Calcutta said:

OK besides spam and shotgun carts how are we meant to prepare for that?

Physical assets that inflate along with the fiat money. Precious metals and dare I say it, property have both stood the test of time. Shares in utilities should also be a decent hedge but stocks generally will probably inflate although businesses / services that depend on discretionary / non essential spend could be wiped out. 

After the 1st world war those on fixed incomes in Germany (pensioners) were wiped out by the inflation. At least the wages kept pace with inflation (sort of although the hardship was appalling - giving rise to WW II). Even a '70's style UK inflation would wipe out many pensioners and ironically it will be those with defined benefit pensions (e.g final salary) that are worst effected as they are generally only protected against inflation up to 5% per annum and many only up to 2.5%. 

UK inflation peaked at circa 25% per annum and it doesn't take many years of anything even approaching that for the value of money to be wiped out. 

I think that I am right in saying that with inflation of 7% money will half in value in 10 years. I know that is the rate of growth with inflation at 7% so presume it also works the other way.

https://www.economicshelp.org/blog/2647/economics/history-of-inflation-in-uk/

The problem with 'owning' property at a time of huge inflation is that the medicine (aka interest rates) can kill the patient as people cannot afford the increased repayments as rates increase to bring inflation under control. Those who own outright are sitting pretty - at least that's my take on the way it will play out. 

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2 hours ago, lie to bet said:

To summarise the article:

  • The United States has now officially accumulated a $20 trillion debt.
  •  This is  over $167,000 per tax payer.
  • Total American debt (the combination of government, business, mortgage, and consumer debt) is approaching $68 trillion.

That $68 trillion equates to $567,800 per tax payer, how can there not be complete panic over the complete failure of the capitalist system. Surely no one can think it is possible to pay this back. 

It's not capitalism.

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25 minutes ago, Noallegiance said:

It's not capitalism.

It's pretty much the archetype of capitalism.  What you mean is that real capitalism doesn't seem much like the brochure. 

No kidding. 

Edited by DrBuyToLeech

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The alternative way that this can play out is that the debt is defaulted on. I can't recall the figures for the UK but the BoE owns a huge tranch of the the UK public debt; which it lent by the magic (sleight of hand) that is QE. At some point it may become expedient for this debt to be cancelled rather than paid back (which in fractional reserve banking destroys money) and at a stroke our debt to GDP ratio would look prudent again. As the money doesn't really exist and never did, (it's a number on a ledger that is the UK balance sheet) there are no losers apart from the prudent or those who positioned themselves for how this should have panned out in a free market who have already taken the medicine. 

The markets can then be pump primed by further QE. Traditionally we would have expected the pound to be trashed by such a move but would it in these untested and unconventional times? If the government is free of debt it can 'borrow to invest', which as we all know is considered prudent and good for the economy. 

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3 hours ago, lie to bet said:

To summarise the article:

  • The United States has now officially accumulated a $20 trillion debt.
  •  This is  over $167,000 per tax payer.
  • Total American debt (the combination of government, business, mortgage, and consumer debt) is approaching $68 trillion.

That $68 trillion equates to $567,800 per tax payer, how can there not be complete panic over the complete failure of the capitalist system. Surely no one can think it is possible to pay this back. 

They'll mint a $20US trillion coin, playboy images front and back and pay it off in one go

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  • 294 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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