Kicking the can down the road
In God we trust; all others must pay cash. — American Proverb
This is a summary of some bloggers I have been following. Most of this are not my original thoughts.
The debt trap is going to catch us all.
Other than moving a few pieces around the board, the recent actions by The Fed only continues to move back the day of reckoning. The clock is ticking for sure.
The economy has been massively over-leveraged since before 2008. The pandemic is going to get the blame for the system crashing.
Debt is one of the biggest problems of the US economy. It is like a cancer. Some patients can live with cancer for quite a while with few if any symptoms, but the cancer always gets them in the end, especially if left untreated. And the US made no attempt to address the cancer.
It took 20 years for the debt to double from 30% to 60%. Then the last doubling was in about a decade. The next doubling will happen within 5 years, at this rate.
Look at the US debt clock: 1980 US debt to GDP is 30%. 2000, 60%. 2010, 80%. 2020, 140%.
A sinking ship takes on water at a faster rate the lower it sits in the ocean.
When the US debt to GDP reaches 300% the US dollar will be in real trouble.
Debt is being created to deal with debt. Talk about kicking the can down the road. Keep printing trillions until the US currency is worth nothing. At some point something has gotta give.
America is a nation of perpetual debt slaves. Any sane person knows that you don’t borrow your way to prosperity. The debt pyramid is going to collapse. And the short sellers and asset strippers are busy, but there is no real wealth creation taking place. These smart ass financial engineers confuse making money with creating wealth. So many parasites at the top, laughing at the system. Adding no value to the world.
The rich are getting richer and the masses are getting squeezed.
The debt bubble will burst and the rich will be ok.