Biden has added $2 trillion to the deficit THIS YEAR ALONE. Tax revenues are down because the economy is sucking and they keep spending like drunken sailors and doing everything they can to make things more expensive. It’s going to get real in hurry when it starts going south.
It’s going to get real in hurry when it starts going south.
When will that be?
I’d said relatively soon as all that less than two percent interest government debt turns over and becomes seven percent government debt. Within a couple to three years we are on pace for about 75% of our revenue to be consumed merely paying the interest on our debt.
Call me stupid, but I don’t think that is a situation that can continue for long.
The government is no different than a lot of the companies that have gone bust in the last year or two.
They borrowed huge amounts of money and gave out huge salaries and bonuses regardless of their actual profitability. They did so because they knew they could refinance the debt for a similarly low or even lower rate when it came due. So, the only cash flow they really had to worry about was the one needed to pay the interest in the loan. Well, when the rates skyrocketed and it came time to refinance, then suddenly their payments double or tripled when rates went fro close to zero to five percent or more. Overnight, they were bankrupt as that they couldn’t afford to refinance.
Our government is in the same boat. It appears a little better for them since it can basically print it’s own money unlike those companies, but that then creates massive inflation and makes everyone poor.
The government has worked itself into a situation where it needs to massively inflate things to pay its debt and stave off default and economic collapse. But if it inflates things, it risks hyperinflation and economic collapse. The falling tax revenues as inflation eats into everyone’s bottom line and reduces economic activity is the first sign of this danger.
The government is no different than a lot of the companies that have gone bust in the last year or two.
They borrowed huge amounts of money and gave out huge salaries and bonuses regardless of their actual profitability. They did so because they knew they could refinance the debt for a similarly low or even lower rate when it came due. So, the only cash flow they really had to worry about was the one needed to pay the interest in the loan. Well, when the rates skyrocketed and it came time to refinance, then suddenly their payments double or tripled when rates went fro close to zero to five percent or more. Overnight, they were bankrupt as that they couldn’t afford to refinance.
Our government is in the same boat. It appears a little better for them since it can basically print it’s own money unlike those companies, but that then creates massive inflation and makes everyone poor.
The government has worked itself into a situation where it needs to massively inflate things to pay its debt and stave off default and economic collapse. But if it inflates things, it risks hyperinflation and economic collapse. The falling tax revenues as inflation eats into everyone’s bottom line and reduces economic activity is the first sign of this danger.
I think you have raised some good economic points.
Biden has added $2 trillion to the deficit THIS YEAR ALONE. Tax revenues are down because the economy is sucking and they keep spending like drunken sailors and doing everything they can to make things more expensive. It’s going to get real in hurry when it starts going south.
The population went from years of available cheap money and rising standards of living to current times of massive inflation, doubling interest rates, and lowering standards of living, all within a short timeframe. It's tough for many folks to wrap their heads around that and adapt, so personal spending has remained high and credit card debt is huge while folks try to maintain their 2019 lifestyles. The ability to remain under this delusion seems to be tapering off more and more every day.
Biden has added $2 trillion to the deficit THIS YEAR ALONE. Tax revenues are down because the economy is sucking and they keep spending like drunken sailors and doing everything they can to make things more expensive. It’s going to get real in hurry when it starts going south.
Biden has added $2 trillion to the deficit THIS YEAR ALONE. Tax revenues are down because the economy is sucking and they keep spending like drunken sailors and doing everything they can to make things more expensive. It’s going to get real in hurry when it starts going south.
What I love most about these posts is reading the dumbchits that come in and try and make fun of the current economic situation we are in and heading to. People are dumb Joe, really fuggin dumb. Some of these fools act as if this is nothing more than a little bump in the road. America as we once knew it is comletely over and there is no way out of whats coming. Hard times is putting it lightly
