Debt spiral is coming \ stacker news ~bitcoin

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1096 sats \ 33 comments \ @BitcoinSearch 12 Jul bitcoin

According to data reported yesterday, the United States government spent ONLY 30% of the total tax collection this year on debt interest, we are approaching a point of no return, where the Deficit can implode the currency.

Unfortunately, it can reach the point where the government has to choose between saving the debt or the currency and I think we all know what that means.

I want to read your opinion, I think many people do not know what this means, hyperinflation due to a deficit that is fed back by public spending and greater debt that ends in hyperinflation.

https://m.stacker.news/39415

https://www.zerohedge.com/markets/us-spent-record-140-billion-just-debt-interest-june-30-all-tax-revenues

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535 sats \ 15 replies \ @SwearyDoctor 12 Jul

this is only half the story. What people fail to understand is that hyperinflation, where it happened, was never a result of internal policy failures or just of money printing; it was always a result of having debt and other liabilities in another currency they CAN'T print. This was German hyperinflation, which had reparations debt in gold mark and physical goods. this is Zimbabwe, Venezuela, Argentina. The currency they CAN print doesn't serve to buy goods on the world market or pay their external debts.

The US, however, can do that - UNTIL NOW - because the currency the US prints just drains away in the coffers of the world, in world reserves for international trade, as countries buy up dollars to circulate them, often among themselves, to pay for all sorts of goods and resources. (this is the US' free lunch, it produces dollars for nothing and gets all the world's good back; you could also call it a robbery, as it does it by threat of physical force).

The problem isn't the debt service, or the money printing, by itself. It's those things, combined with the fact that the qworld has had enough of being robbed by 850 worldwide bases, jet fighters and aircraft carriers, through their buying of US rtreasuries and denominating goods in dollars. That's the part that will make the currency hyperinflate: the debt and printing PLUS the fact that this printed paper can no longer be dumped on the world for free goods.

113 sats \ 2 replies \ @BitcoinSearch OP 12 Jul

I totally agree with you and you couldn't explain it in a better way, what will deal the final blow will be the loss of confidence and that the bond auctions turn out worse every day since without demand for bonds the currency is destined to collapse since They would have to buy them themselves.

25 sats \ 1 reply \ @Bell_curve 12 Jul

Federal Reserve buys bonds when there are no other buyers

Terrible situation

13 sats \ 0 replies \ @BitcoinSearch OP 12 Jul

yes, we will be closely observing the situation.

0 sats \ 11 replies \ @BitcoinAbhi 12 Jul

Thanks for clarifying. I also think that the US debt is over exaggerated. The dollar easily dissolves in every corner of the world. It's not limited to boundries. So, no chance of hyperinflation.

34 sats \ 4 replies \ @SwearyDoctor 13 Jul

No chance of hyperinflation -as long as- the dollar easily dissolves in every corner of the world. This is my point: this won't last forever.

Reserve currencies have cycles, and they eventually fail; and thatusually goes along with a rebellion against the hyperexploitation that goes along with being forced into a reserve currency which, as I said, provides the issuer with a free lunch - but that's only true IF that reserve currency is a fiat currency.

That's obviously different with gold, or bitcoin, which is important to keep in mind for the future.

21 sats \ 2 replies \ @Bell_curve 13 Jul

USA debt to GDP ratio has never been this high

Including World War Two

34 sats \ 1 reply \ @SwearyDoctor 13 Jul

https://m.stacker.news/39530

meanwhile, look at Russia's debt to reserves

13 sats \ 0 replies \ @BitcoinSearch OP 13 Jul

Would it be due to massive purchases of gold? I think another thing that is adding fuel to the fire is that the United States confiscated a lot of money from the Russians and now the other countries that have bonds see how unfair the system is if you do not agree with the owners.

0 sats \ 0 replies \ @BitcoinSearch OP 13 Jul

It will not last forever as well explained, I think that starting in 2020 humanity peaked and now it is time to pay the bills with emissions.

5 sats \ 5 replies \ @BitcoinSearch OP 12 Jul

In reality, hyperinflation is certain, the question is when, the dollar will continue to be the currency used everywhere but every day it will buy fewer goods and services.

13 sats \ 4 replies \ @BitcoinAbhi 12 Jul

It's not happening. In my country I'm buying more with USD over the time. Dollar has always increased against my country's currency. Even in the past 10 years, it increased as much as 40%

14 sats \ 3 replies \ @BitcoinSearch OP 12 Jul

That won't last forever, believe me, in Venezuela for example that happened until the national currency imploded, now the dollar is used as currency and every day it buys less ;)

0 sats \ 2 replies \ @Bell_curve 13 Jul

Value is relative

I heard that 60 percent of transactions in Latin America are settled in dollars

31 sats \ 0 replies \ @BitcoinSearch OP 13 Jul

In short, the rise of the dollar in Latin America is nothing more than a collapse of national currencies and not a revaluation of the dollar itself.

13 sats \ 0 replies \ @BitcoinSearch OP 13 Jul

Yes, there lies the problem, because the dollar did not lose value because it was used to take refuge from national currencies, as only the dollar is used, it will lose its value vs. goods and services, since those who sell services and goods will charge in dollars and will be affected by the high prices of energy, assets and food.

38 sats \ 1 reply \ @random_ 12 Jul

From last year, but still relevant

0 sats \ 0 replies \ @BitcoinSearch OP 12 Jul

thanks for sharing.

38 sats \ 1 reply \ @grayruby 12 Jul

Pssst. It's already here.

20 sats \ 0 replies \ @BitcoinSearch OP 12 Jul

yes sir!

34 sats \ 0 replies \ @Msd0457890 12 Jul

It is a great truth that sooner or later it was coming.

13 sats \ 2 replies \ @SatsMate 13 Jul

Given we are the worlds reserve currency, it would be damning if the U.S. sacrificed the currency. I think they are going to try to do everything they can to protect this, and don't forget how good the government can be at kicking the can down the road

0 sats \ 1 reply \ @BitcoinSearch OP 13 Jul

It is the debt or the currency and anyone would choose the debt because it is the most important thing, people can live for many years with inflation and not make a big deal about it, it is a very efficient and destructive hidden tax

0 sats \ 0 replies \ @Bell_curve 13 Jul

Too much debt devalues the currency also

0 sats \ 4 replies \ @Bell_curve 12 Jul

USA interest payments on debt are high but that's not the reason to panic. Total government expenditure is the area of concern.

The solution is to cut spending and not default on interest payments to bond holders and other lenders.

One benefit of interest payments being the highest line item is that voters can see it and politicians can't lie about fiscal irresponsibility.

34 sats \ 3 replies \ @BitcoinSearch OP 12 Jul

first -No government is going to commit to spending less, that is what the government is dedicated to, spending. second -There is no fiscal irresponsibility because the interest payment is larger than the defense budget, there is no tax that can match that and if you tell me that you will charge more to large capitals, then they will go to another, friendlier jurisdiction.

34 sats \ 2 replies \ @JesseJames 12 Jul

"....No government is going to commit to spending less..." The next government will (one would hope). All things point to that, but nothing is certain.

21 sats \ 0 replies \ @Bell_curve 13 Jul

At least half of the federal government payroll can be cut and no one would notice except for more efficiency

0 sats \ 0 replies \ @BitcoinSearch OP 13 Jul

We all hope that you do it since the pain of thousands of people can be avoided. but "nothing is certain."

0 sats \ 3 replies \ @BitcoinAbhi 12 Jul

It's truly not the complete story! USD is so big that it needs a total annihilation of Dollar by some other currency. I don't think there's still any challenge to USD.

0 sats \ 2 replies \ @BitcoinSearch OP 12 Jul

You cannot fight against the inflation of assets and goods and services, I am not saying that the dollar will stop being used, only that every day it will buy much less yes or yes.

0 sats \ 1 reply \ @BitcoinAbhi 12 Jul

You can say yes for anything but for me (although I don't) putting my money dollars is more profitable business.

0 sats \ 0 replies \ @BitcoinSearch OP 12 Jul

With dollars, every day you buy less gold, silver, cocoa, coffee, gasoline, cars, houses and obviously less bitcoin.