The era of zero-interest rates and unlimited government borrowing has ended. As Japan has shown, even at ludicrously low rates of 1%, interest payments on skyrocketing government debt eventually consume virtually all tax revenues. Higher rates will accelerate this dynamic, pushing government finances to the wall as interest on sovereign debt crowds out all other spending. As taxes rise, households have less disposable income to spend on consumption, leading to stagnation.
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95 sats \ 3 replies \ @Undisciplined 4 Aug 2024
Maybe we'll get unusual stimulus like tax cuts, then.
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111 sats \ 1 reply \ @DawnoftheDead 4 Aug 2024
West will get anarchy :) thats kind of a tax cut
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21 sats \ 0 replies \ @Undisciplined 4 Aug 2024
I want to believe you, but things never quite seem to work out that well.
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103 sats \ 0 replies \ @siggy47 OP 4 Aug 2024
Hmmm. Novel idea. No chance
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234 sats \ 3 replies \ @k00b 4 Aug 2024
Lyn was on Galloway's podcast discussing this recently.
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142 sats \ 2 replies \ @gmd 4 Aug 2024
Find I enjoy Galloway for some reason. Nice to hear a center left opinion sometimes that goes against my twitter algo echo chamber.
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149 sats \ 1 reply \ @k00b 4 Aug 2024
Agreed. He's tries to be sensible most of the time. I can't stand Kara though.
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99 sats \ 0 replies \ @Satosora 5 Aug 2024
I feel this Lyn Alden person keeps popping up more and more.
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97 sats \ 1 reply \ @Tehila 4 Aug 2024
Isn't Japan's debt to gdp like more than double that of the US?
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42 sats \ 0 replies \ @gmd 4 Aug 2024
seems like an insurmountable hole. they should just develop a plan to reach complete independence and self sufficiency and then default on their debts.
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64 sats \ 2 replies \ @DawnoftheDead 4 Aug 2024
What if i told you it never worked :)
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76 sats \ 1 reply \ @siggy47 OP 4 Aug 2024
It masked the symptoms of the disease, like cold tablets.
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43 sats \ 0 replies \ @Bell_curve 4 Aug 2024
COVID lol
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44 sats \ 1 reply \ @SatsMate 4 Aug 2024
It is crazy to witness this fourth turning training crash in slow motion. What is even more wild, is I think this crash may take years to unfold.
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0 sats \ 0 replies \ @siggy47 OP 4 Aug 2024
Maybe. "This time is different" never is.
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43 sats \ 8 replies \ @grayruby 5 Aug 2024
I missed this one. Had to take my wife to the city for an MRI. This is a really interesting perspective.
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50 sats \ 7 replies \ @siggy47 OP 5 Aug 2024
It really is. I hope all is well with the family.
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43 sats \ 6 replies \ @grayruby 5 Aug 2024
Oh yes just a follow up test from her surgery in June. Doc says she is healing a bit slower than expected but otherwise all good.
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50 sats \ 5 replies \ @siggy47 OP 5 Aug 2024
Good to hear. US 10 year bond at 3.76 tonight. That is a huge sudden move.
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43 sats \ 4 replies \ @grayruby 5 Aug 2024
Which central bank makes a statement first? US or Japan?
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50 sats \ 3 replies \ @siggy47 OP 5 Aug 2024
US. If BOJ backtracks that quickly it will scare the shit out of the whole world.
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43 sats \ 0 replies \ @Satosora 5 Aug 2024
I wonder if Japan will take a unique approach on it.
You might be surprised how much wealth the Japanese have, because it is an island country.
Most of the wealth stays inside the island.
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43 sats \ 1 reply \ @kepford 4 Aug 2024
Another thing Japan has shown is that we have a ways to go before stuff actually fails. From what I have read we will not see a collapse of the dollar like many of us believe is inevitable foranu years. Economists have predicted Japan's implosion for many years and been wrong. I believe that fact has given rise to the MMT religion.
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0 sats \ 0 replies \ @Satosora 5 Aug 2024
What do you think will happen to the dollar?
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43 sats \ 1 reply \ @TNStacker 4 Aug 2024
Stagflation was always the real risk of pandemic fiat printing. And here it comes right on time.
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0 sats \ 0 replies \ @Satosora 5 Aug 2024
Did Japan give out stimulus checks?
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0 sats \ 0 replies \ @Zk2u 5 Aug 2024
Interesting!
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0 sats \ 0 replies \ @sangekrypto 5 Aug 2024
The work salary alone is not enough, what about food consumption, how much is the child's school fees, and other needs?
Sometimes local governments do not think about the results of their community's work, the abilities of each community are certainly not the same.
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0 sats \ 0 replies \ @IamSINGLE 5 Aug 2024
It seems like stagnation has taken over the world in entirety. Bitcoin is the answer as is, but we see so much sudden decline in its fiat price whereas it should rise. What's the matter?
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