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Is everybody happy with they new tax law
On Sat, 13 Jan 2018 07:02:02 -0500, "Mr. Luddite"
wrote: On 1/12/2018 8:12 PM, wrote: I could argue either side of that. You do have a ****load of Gen Exers and Millennials chucking money into the market with their 401ks and that tends to support the bull but I still have a hard time ignoring the debt problem and the lack of real growth. We already borrow all of the money to run the government beyond entitlements and interest on the debt. What happens when revenue does not even cover that? The Fed already monetized $4.5T of our debt by buying unsold bonds. When will the world figure out our debt is a bad bet and stop renewing their bonds? Things will happen fast then. I know US "paper" is supposed to be the safest thing in the world but so was real estate ... until it wasn't. I was the one on these yacking boards who said real estate was cruising for a fall but I was 10-15 years early. I did not believe the elasticity of the financial markets to absorb that much bad debt. When it finally popped it was much worse than I predicted tho because it brought down the banking industry with it, not just the real estate market. I did not really understand the effect of the derivatives. This situation is worse than that. If the federal debt bubble pops the 30s will look like a bump in the road. It could take down "money" as we know it. Debt as it relates to global economics is a transparent, phony concept period. There's no underlying standard or base to it. Debt is only real to common people tied to the banking systems via mortgages, credit cards or loans and the penalties for defaulting are governed only within the rules of the banking systems. Global (national) debt doesn't mean a thing. To be concerned with it assumes you think a "note" is going to be called and it is going to be repaid someday by someone. It isn't. It's factored into global trade and international finance. To think it is like a bank loan that has a maturity date tied to it isn't real. A maturity date doesn't exist. If there aren't enough revenues to pay the phony interest, the government just prints more money. The problem is the interest we pay on a lot of that debt is real (private holders, foreign governments and now, SS/MC recipients) and there is a limit to how much money the government can just "print" before runaway inflation gobbles us all up. To start with the interest on the short term paper the government has to sell over to cover that interest will skyrocket, making the problem worse. This was the basis of a lot of Perot's "charts and graphs" that insured we would never have another viable 3d party candidate. Nobody wants to tell the emperor he has no clothes. You are really starting to sound like those people denying that there was ever a problem with housing. "I mean, who doesn't pay their mortgage" or so it was explained. |
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