That's what a real debt spiral looks like. The US have to pay more than 1 trillion USD/year to serve the ever growing public debt. It's 4% of GDP and Treasury Sec. Yellen is fabulating of financing 2 wars simultaneously. Interesting. Meanwhile there's no move of the Fed to monetize this fiscal disaster so far.
188 sats \ 5 replies \ @0xbitcoiner 8 Nov 2023
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0 sats \ 4 replies \ @TomK OP 8 Nov 2023
Let's see if Jerome loses his nerves....
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0 sats \ 3 replies \ @0xbitcoiner 8 Nov 2023
The government's income is not enough to cover its debt. It will have to print more and more money. It's a never-ending cycle.
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10 sats \ 2 replies \ @blocktock 8 Nov 2023
Hate to be that guy, but it does end and it ends badly.
- It ends in full-blown kinetic war.
- To distract countries, the masses and everyone from the fact that they (like many other nations) can never pay back any of their obligations and debt responsibilities.
- It's a mathematical black-hole they can't escape from. They need conflict to erase the "ledger". And decide which country will take the fall for the next 50 years.
- People talk like they plan to pay it back or print their way out of it. It's not possible.
- They will not print until things get really really bad. My best guess is April 2024.
- Right now, they seem to be intent on driving the economy into the ground.
- They know they have lost all credibility. You will see riots on the streets before they print again. And no good doing it now, when the election is next year.
- The U.S. Government needs to drum-up support for their war plans. Destroying the economy breeds anger and support for the many conflicts the U.S. is (at best) encouraging, if not creating, around the world.
- Once they have created widespread unemployment, only then may they buckle under pressure to print. And they likely won't do it to prop-up asset prices, they'll do it to fund their "defence" and military plans.
- In spite of that, Bitcoin seems to be being recognised right now as a "risk off" asset, rather than "risk on". Equities are about to tank and Bitcoin could be decoupling.
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277 sats \ 0 replies \ @TomK OP 8 Nov 2023
Rough sea ahead
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0 sats \ 0 replies \ @0xbitcoiner 8 Nov 2023
I've got it in my calendar :)
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52 sats \ 5 replies \ @grayruby 8 Nov 2023
Thanks Tom. It is truly mind blowing how quickly this is accelerating. I think Luke Gromen described it as reaching the acute stage.
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50 sats \ 4 replies \ @TomK OP 8 Nov 2023
Hi. Gromen is one of the pros that really dive deep into this fiscal disaster to put it into a geopolitical perspective. Imagine having brains like him in politics
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0 sats \ 3 replies \ @grayruby 8 Nov 2023
Yes been a big fan of Luke's for many years. Plus his son is a hell of a baseball player.
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50 sats \ 2 replies \ @TomK OP 8 Nov 2023
Forgive me. As a german barbarian I have no idea of Baseball. I saw some vids of Luke's son. Seems impressive. But to my defense: The film about Babe Ruth really moved me
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0 sats \ 1 reply \ @grayruby 8 Nov 2023
Yes. Luke often posts videos of his son's games. I think he is playing college baseball now.
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60 sats \ 0 replies \ @TomK OP 8 Nov 2023
Cool. Seems to be a good american family. I like that
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0 sats \ 3 replies \ @BlokchainB 8 Nov 2023
But who gets the $1T in payments? Isn’t the majority of the bond holders domestic? Like pension funds?
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0 sats \ 2 replies \ @TomK OP 8 Nov 2023
I don't have the data at hand now as I'm literally in bed. But think of the Eurodollar market and the huge amount of treasuries floating around in the world. It's different than Japan
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0 sats \ 1 reply \ @BlokchainB 9 Nov 2023
True and tether owns T-bills too. I always ask myself if USA stops the coupon payments who gets blown up? Or does a soft default and only pays 50% of the coupon.
Might be a silly question because the whole system would collapse if USA did this
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0 sats \ 0 replies \ @TomK OP 9 Nov 2023
Nono, it's not silly. It's THE question at the moment that IMO only Jerome can answer. I think they will bow down at a point when the others are in trouble.
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