7 replies to this topic

[Rogerdodger]

US Debt or Bohemian Rhapsody?
"Nothing really matters, anyone can see
Nothing really matters
Nothing really matters to me"

 

Watch debt grow exponentially as GDP falls at https://www.usdebtclock.org/

 

Edited by Rogerdodger, 30 May 2020 - 10:00 AM.

[Douglas]

RD, like I've said before, it doesn't matter until it does, and then it will be the only thing that matters.  The trouble is not in the if, it is in the when.  Which feather on the camel's back will be that one that tumps the humped beast to the earth?  Debt is a bit like my favorite libation, single malt.  One is never enough, but too many always ends badly.

 

Regards,

Douglas

[pdx5]

Debt matters less with ZIRP. It will matter hlluvalot if and when interest rates are allowed to match real inflation levels..

If US Treasury can sell bonds at Zero Interest Rates, why should volume of debt matter for life of bond? There is no interest to pay. If a bond matures, Treasury can pay the principle by issuing a new bond at ZIR.

If Trump gets his negative interest rates in place, it will pay to go deeper in national debt.

Edited by pdx5, 30 May 2020 - 06:44 PM.

[Rogerdodger]

"it will pay to go deeper in national debt"

Banks charge me to give them money...

Pay everyone a paycheck to stay home and not work...

 

Edited by Rogerdodger, 30 May 2020 - 10:45 PM.

[andr99]

How much of that debt is in the hands of chinese government ? It's not so good when someone like them keep someone else by the balls.........not a good sensation i think........

[Rogerdodger]

Mike Burk Sums it up nicely:

 

Everything is fake.

The Fed announced they were going to start buying junk bonds and described how they were going to do it.

It is illegal, but, so what, they are doing it with fake money.

If they are going as low as junk bonds you can assume everything of higher quality, that is, everything by which a political assessment can be made is under the control of the political authorities.

Everything is fake.

[pdx5]

How much of that debt is in the hands of chinese government ? It's not so good when someone like them keep someone else by the balls.........not a good sensation i think........

 

No need to borrow from China. The FED is printing unlimited electronic money and dropping it from a giant helicopter.

They are very lucky the gold standard is no longer in existence. We are the new Zimbabwe and Argentina. 

[Rich C]

How much of that debt is in the hands of chinese government ? It's not so good when someone like them keep someone else by the balls.........not a good sensation i think........

Early this year, China held $1.1 trillion of US bonds, which they had bought over the years using money they got from their trade surplus with the US.  With the US debt at $25 trillion, China now holds 4% of the US debt.  They stopped buying US bonds a couple of years ago when Trump put tariffs on them.  They could cause some heartburn in the market if they started selling their bonds, depending on how fast they did it, but no knock out punch IMO.