Financial

Seeing financial news of a coming October crash.

quote:
The fed owes 30 trillion now, plus many more trillions in unfunded liabilities. Some dims in congress have openly said there’s no reason to pay this off and to just keep borrowing. The Russians and the Chinese have said they’re divesting themselves of the dollar. More and more people are starting to see what’s going on and more and more people are unwilling to buy government bonds. So, when the Fed has to buy their own notes, it’s only a matter of time till the house of cards comes tumbling down.

This.

All of it.

Now let’s dig a smidge deeper: From 1789-FY2000 the federal government generated ~$3.5T total in deficit spending. From FY2001-FY2021 (2021 is estimated but we’re late enough in the year to consider it reasonably close) that number is $18.5T, or ~5.2x as much in just 20 years than what was generated in the previous 200+ years.

For around the last 15-20 years this has become more and more a matter of “when”, not “if”.

This is exacerbated by the extra COVID welfare payments (keeping people from seeking work) and the ridiculous commerce barriers of mandating masks and/or vaccines.

The problem is that tax revenues are still high enough that they can still service the debt. Once those go up to 25%-30% of revenues, the Dollar will be on its way to a massive crash as it becomes inevitable that the federal government will miss a payment (because they can’t keep affording spending AND making debt payments).

This post was edited on 9/27 at 1:46 pm

For around the last 15-20 years this has become more and more a matter of “when”, not “if”.

Source: https://www.tigerdroppings.com/rant/politics/seeing-financial-news-of-a-coming-october-crash/98587835/page-3/

Donovan Larsen

Donovan is a columnist and associate editor at the Dark News. He has written on everything from the politics to diversity issues in the workplace.

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