Re: Most of us know it is not shambles now

RememberTheDanny

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Apr 10, 2024, 9:35 PM [ in reply to Most of us know it is not shambles now ]

It’ll fall apart before our generation has passed from this earth.

It’s small right now, but the BRICSS countries are rapidly de-dollars ing their economies. As the USA continues to increase its frequency to use the dollar as a weapon to punish foreign countries that do ‘not behave,’ doubt grows in other countries that the USA will punish them.

The concern that the USA will keep expanding our govt’s definition of what constitutes ‘bad behavior’ only makes the ‘full faith and trust in the US government’ backing of the dollar an increasingly risky investment. As of this time, the world’s biggest economies … with the exception of P.R.China … remain ‘addicted’ to the U.S. dollar. Much of this is because their own currencies are less reliable than the dollar. Still, we keep depending on friendly foreign countries to keep purchasing our new T-Bond issues.

The most obvious very short term crack in the economy is that the USA is struggling to sell enough T-Bonds to foreign countries at interest rates that our govt sees as being ‘not too expensive’ for us to want to pay. Therefore, the US isn’t raising the amount of money that we need to fund the Treasury. Thus, the Federal Reseve has been (to my understanding, for the 1st time in my life) issuing IOU’s to the Treasury instead of the full amount of actual funds that the Treadury needs. Some clues about these ‘cracks’ to the American consumer are seen when a person wants to make a quick large cash withdrawl from their bank. That has been the case, in some respects, for several years. The difference is that the value that constitutes ‘large cash withdrawl’ keeps getting smaller.

For the Federal Reserve to get the money needed to transfer to the Treasury and thus fund the economy, the Fed will need to agree to sell more T-Bonds at interest rates (I.e., higher interest rates) that satisfies the (higher risk levels) that are needed to balance the foreign governments’ risk / reward balance.

Doing this will cause more increases in the cost of money; higher borrowing costs will be the outcome.

(*). If rates get high enough, then our economy will start to contract. Contraction will lead to a stock market collapse, big declines in real 3state prices.

No one wants an economic contraction, but it is highly likely to happen.

(*). This will happen regardless of whether Biden or Trump or RFK Jr or, if were ’lucky,’ the next Administration after the coming one. Biden’s handlers didn’t do this entirely by themselves, but they greatly accelerated the not-distant-future / high-likelihood of such a disaster. If our govt stops with the enormous vote buying spending and ‘we are the hero of the world’ spending, then maybe we can muddle through with years of a stagnant / deeply recessed economy.

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So secretive ...

Re: So secretive ...

Re: So secretive ...

Agree 34 trillion percent.***

Yawn, your commemorative gold coin commercial is coming on soon

I'm just gonna use pennies... Ode to the Old West.***

Re: Yawn, your commemorative gold coin commercial is coming on soon

Most of us know it is not shambles now