People have been talking about the unsustainable debt my entire life and it continues to grow exponentially. When do the wheels come off? What will be the trigger?
Related article from Mises Wire:
Mounting Deficits Mark the US's Road to Ruin By Daniel Lacalle "For 2023, the United States will likely post the worst GDP growth—excluding debt increases—since 1929. In other words, the country is in a recession disguised by bloated deficit spending."
I'm guessing people probably don't like Keynes here, but it's always good to keep in mind this truth: "The market can stay irrational longer than you can stay solvent." Stay frosty my friends
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Good quote and very apt
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I busted that quote out yesterday. Keynes had many great insights, he just fundamentally misunderstood economics.
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the issue is the interpretation of "you" I think he unwittingly reffers to "insiders"
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My understanding is that the "you" is whoever is trying to profit off of speculation.
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Speculation is a zero sum game unless you have special knowledge/skill/advantage which is basically "inside" information
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That's about right, in expectation, at least according to the Efficient Markets Hypothesis. I think the quote is aimed at people who feel like they've identified a trend that other people aren't aware of and want to invest accordingly.
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I know the hypothesis but... why do you type this?... The benefit from trading abstractions in markets is moving of risk and perception of risk, lets not go there... I like your nym. I can relate...
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wasn't sure exactly why I was typing... but then 180 sats!! woop!
"Providing funding for the wars in Israel and Ukraine for U.S. national security" is the cover for more QE. Citizens must do their part by accepting a little inflation. GDP will benefit, since unlike you, they won't exclude debt increases.
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No more War Bonds. They can just do QE and people pay with inflation, and cannot decide if they want to support war or not. :/
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Exactly. And they call this mess a democracy. That's rich.
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Not quite. They call it a "Democracy", by which they just mean "rule by Democrats".
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The thing we always seem to lose sight of, as Americans, is that the rest of the world is a bigger mess than America is. That's the main reason they can keep exporting their inflation.
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Yep. Due to our reserve currency status. I can't believe every other country isn't furious at the U.S. for weaponizing the dollar.
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??? they are, but look what happens to them if they show dissent
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They only have their own central banks to blame for managing their currencies even worse than the dollar.
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