Jump to content

Theme© by Fisana
 

Photo

Borrowed money, never to be repaid

DEBT

  • Please log in to reply
36 replies to this topic

#1 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 06 March 2018 - 01:08 PM

Borrowed money, never to be repaid
The debt wiped out by nuclear war 
 
 
 
 
 
March 6, 2018
 
 
 
 
 
Secret US government policy.
 
This is the secret reason why they don't worry about how big their debt becomes.
 
Also why they need a huge military to protect themselves from foreign creditors.
 
 
___________________________________________________________________________________
 

  • 0

#2 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 06 March 2018 - 05:53 PM

Credit card debt:
 
The 25 U.S. cities with the most as it relates to income
 
 
 
 
 
March 2, 2018
 
 
 
 
___________________________________________________________________________________
 
___________________________________________________________________________________
 
          THE SITUATION COULD GET WORSE
 
 
 
 
 
 
 

  • 0

#3 Bruce M Cow

Bruce M Cow

    Advanced Member

  • Members
  • PipPipPip
  • 980 posts

Posted 07 March 2018 - 03:40 AM

Where is the money going?


  • 0

#4 Atossa

Atossa

    Registered User

  • Members
  • PipPipPip
  • 40472 posts

Posted 07 March 2018 - 05:41 AM



I'm a debt free contrarian.

.
  • 1

#5 Atossa

Atossa

    Registered User

  • Members
  • PipPipPip
  • 40472 posts

Posted 07 March 2018 - 05:44 AM



the borrower is slave to the lender

Proverbs 22:7

.
  • 1

#6 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 11 March 2018 - 10:27 AM

US credit card debt hits $1 trillion
 
 
 
 
March 11, 2018
 
 
 
 
 
 
credit-card-pile.jpg
 
creditcards-091614.jpg
 
 
A first in global capitalism, US citizen consumer credit card debt has now topped $1 trillion.
 
For the first time in history, consumer credit card debt in America has risen above the benchmark $1 trillion measure, according to Washington DC-based online personal finance website Wallethub.com.
 
According to the personal finance website, US consumers added $92.2 billion to US credit card debt in 2017, the highest one-year increase since 2007.
 
Wallethub.com asserts that the average US household owes some $8,600 in credit card debt, cited by Abcnews.go.com.
 
A senior analyst at the personal finance website put a positive spin on the eye-opening statistic, suggesting that the rapid rise of debt was simply a result of economic confidence by Americans.
 
The Wallethub.com spokesperson claimed, "We haven't seen anything like this," adding, "Consumer confidence is at its highest point. Since the [2008] recession, people have been saving up for houses, cars… new furniture and appliances, which often get charged on credit cards."
 
At the tail end of 2017, during the final fourth quarter alone, Americans added a whopping $67.6 billion in debt, as the total figure represented by debt defaulters - referred to in financial jargon as the 'charge-off' rate - hovered at a historic low.
 
"People are spending so much more than they have. They cannot keep up with the bill," warned the Wallethub.com spokesperson.
 
According to credit reporting agencies, the average credit score for Americans in 2017 is 675, four points below the 2007 figure.
 
___________________________________________________________________________________
 
___________________________________________________________________________________

Edited by grog, 11 March 2018 - 10:28 AM.

  • 0

#7 Mario Milano

Mario Milano

    Advanced Member

  • Members
  • PipPipPip
  • 28987 posts

Posted 11 March 2018 - 10:32 AM

the borrower is slave to the lender
Proverbs 22:7
.

Yep spot on...and that is the whole idea, get the goyim to be permanent slaves to the Jew with debt....

How about this goyim...tell the jew bankers to f$&@ off and the Goyim not only cancel all debt owed to the satanic jew, but throw them out again, this time permantly

Edited by Mario Milano, 11 March 2018 - 10:43 AM.

  • 0

#8 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 11 March 2018 - 10:34 AM

A first in global capitalism,

 

US citizen consumer credit card debt has now topped $1 trillion.

 

U.S.-Banks-to-Boost-their-Credit-Card-LeU.S.-Banks-to-Boost-their-Credit-Card-Le


  • 0

#9 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 11 March 2018 - 10:39 AM

Borrowed money, never to be repaid
 
The debt wiped out by nuclear war 

  • 0

#10 Atossa

Atossa

    Registered User

  • Members
  • PipPipPip
  • 40472 posts

Posted 11 March 2018 - 06:45 PM




When I was very young [and dumb] my credit card balance inched up to about $1600 [more than a month's salary.]

I painfully took money out of my retirement account to pay it off [the ONLY time I took money out of my retirement account] while vowing to never again have a credit card balance that accrued interest.

Since then, I still use a credit card [and take advantage of cash back rewards]... but I always pay off my credit card every month [so I pay zero interest]... which means the credit card company is paying me to use their card.

.

Edited by Atossa, 11 March 2018 - 06:45 PM.

  • 0

#11 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 27 March 2018 - 09:28 AM

The Average American's Debt Balances: Anything Look Familiar?
 
 
 
 
March 25, 2018
 
 
 
 
You may be surprised how much we owe.
 
Americans have a lot of debt. That probably comes as no surprise, because you probably owe money, too.
 
Most of us owe money on some combination of mortgages, student loans, cars, and credit cards. Medical debts and personal loans are pretty common, too. While being in debt is normal, you may be wondering how your debt compares to your peers'. And now, you can find out thanks to the 2017 State of Credit report from Experian. Here are a few key findings from that report, along with some tips on what you can do if your debts are higher than you'd like. 
 
 
 
How high is the bill?
 
According to Experian, in 2017:
 
The average mortgage debt was $201,811. 
 
The average non-mortgage debt per household was $24,706.
 
The average student loan balance was $34,144, which is a new record. 
 
The average balance on credit cards was $6,354. Average credit card debt jumped 2.7% over the course of 2017, with Gen X-ers and millennials seeing the largest increases. 
 
The average balance on retail cards was $1,841. Balances rose 4% over the year. 
 
As Experian explained, "average" doesn't always mean "typical": There are big regional differences in mortgages, and some households have high credit card balances but pay them off each month, while others carry a big balance for months or even years. 
 
Still, the report shows that most Americans owe a lot of money. In fact, it indicated that debt in America hit $1.02 trillion in June 2017, which is an all-time high. 
 
Experian's report also shows that a lot of Americans are having a hard time repaying debts. One in three student loan borrowers has been late on a payment in the past year, while 7.5% of credit card debt was delinquent by at least 90 days in the third quarter of 2017. 
 
What can you do about debt?
 
If you're one of the millions of Americans with growing debt, here are some things you can do.
 
First things first: Decide how aggressively you actually want to pay down debt. Not all debt is created equal, and paying off debts like a mortgage or a student loan ahead of schedule may not make sense if your loans are at a low rate and you can get higher returns by investing. You also don't want to prepay student loan debt if you could potentially qualify for loan forgiveness by working in public service. 
 
However, you should do your best to pay off "bad" debt as soon as possible. Auto loans fall in the "bad" category because you're paying interest on a depreciating asset, and credit card debt should be prioritized because of its high interest rates. Paying off these debts as soon as possible can save you huge sums of money in the long run.
 
There are a number of methods of debt repayment, but one that's backed by science is the "debt snowball" method.
 
The debt snowball involves paying as much extra money as you can toward your debt with the lowest balance, while making just minimum payments on everything else. Once the lowest balance is paid off, redirect all the money you were putting toward that debt -- plus any extra you can -- to the debt with the next-lowest balance. Then keep going until all debts are paid off.
 
The math on the debt snowball method may not make sense if you have debts with very high interest rates. In these circumstances, you may want to devote as much extra cash as you can toward your high-interest debt until it's gone. However, research has shown that small wins keep you motivated, so you may want to try other tricks to stay on track if you choose this approach -- like making a visual depiction of your debt using a debt thermometer and coloring in the amount you've repaid. 
 
Whichever approach you take, the most effective method of debt repayment usually starts with making a budget so you can find ways to cut spending and put the savings toward your debt. The less you spend, the faster you can dig your way out of the hole. 
 
You'll also want to build up an emergency fund to cover unexpected costs so you can avoid going back into debt. 
 
You don't have to be average about debt
 
While having debt is normal, you don't have to be average when it comes to credit cards and consumer debt. You can decide to pay cash for reliable used cars instead of continually taking out new-car loans as soon as your old vehicle is paid off, and you can make a commitment to get out of credit card debt and not get back into it.
 
While it may take a little time, being free of consumer debts -- even if you decide not to prepay your mortgage and student loans -- can give you a lot more money to invest for the future.
 
You'll also have peace of mind knowing you don't owe creditors any money, and default isn't something you'll have to worry about if you hit any bumps in the road. 
 
___________________________________________________________________________________
 
___________________________________________________________________________________
 
 
 
 

  • 0

#12 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 27 March 2018 - 12:21 PM

U.S. NATIONAL DEBT ADDS $1 TRILLION IN 6 MONTHS, PARTIALLY DUE TO TRUMP LEGISLATION
 
 
 
 
 
March 21, 2018
 
 
 
 
 
Republicans Unveil 'National Debt Clock' at GOP Convention
___________________________________________________________________________________
 
In just over six months, the U.S. has added a trillion dollars to its national debt. The benchmark was achieved earlier in March, increasing from the $20 trillion mark reached in early September 2017.
 
According to MarketWatch, the debt is expected to increase after President Donald Trump signed a debt limit suspension in February. The debt limit suspension allows for unlimited borrowing through March 1, 2019.
___________________________________________________________________________________
 
Treasury Secretary Steven Mnuchin walks past a display of the U.S. national debt as he testifies to the House Financial Services Committee on "The Annual Report of the Financial Stability Oversight Council," on Capitol Hill, on February 6.
___________________________________________________________________________________
 
The national debt first hit the $20 trillion mark on September 8, 2017, according to government records. MarketWatch noted the debt took 20 months to add a trillion dollars to exceed $20 trillion. It tacked on an additional trillion dollars on March 15, hitting $21,031,067,004,766.25.
 
In November, two months after the national debt surpassed the $20 trillion mark, Trump berated Democrats for discussing the increase.
___________________________________________________________________________________
Donald J. Trump
 
@realDonaldTrump
 
Funny to hear the Democrats talking about the National Debt when President Obama doubled it in only 8 years!
 
3:23 AM - Nov 30, 2017
 
129K
 
66.9K people are talking about this
___________________________________________________________________________________
 
The trillion dollar increase over approximately 6 months has happened before. In 2009, a trillion dollars was added to the national debt between mid-March and mid-November. It happened again between June and December 2010.
 
Analysts predict the U.S. will dive further into debt over the next year. In a report published March 2, the Committee for a Responsible Federal Budget said the national debt "is rising unsustainably." It added that "recent tax and spending legislation have made a bad situation even worse."
 
The committee predicted that trillion-dollar deficits will return permanently by next year and that the debt will exceed the size of the economy within 10 years. "Under potentially more realistic policy assumptions, the country will be facing a $2.4 trillion deficit and debt of 113 percent of Gross Domestic Product (GDP) by 2028," it said.
 
The national debt first reached a trillion dollars in October 1981, during President Ronald Reagan's first term. The trillion dollar mark came just months after Reagan signed major tax cuts into law in August of that year.
 
The 1981 tax cut reduced federal revenue by an average of $118 billion a year-in today's money-during the first four years, according to a U.S. Treasury paper.
___________________________________________________________________________________
 
___________________________________________________________________________________
 
 
 
 

  • 0

#13 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 06 April 2018 - 05:10 PM

The financial system is loaded up with a lot more debt than Wall Street wants you to know
 
 
 
 
 
April 7, 2018
 
 
 
 
 
New report from the International Monetary Fund highlights the risks of non-bank finance, which helps hide debt levels in the financial system.
 
The debt has shifted over to the so-called shadow banking system.
 
Federal Reserve officials love to say the risk of another financial crisis has been severely curtailed by new post-crisis rules that forced the largest banks to raise substantially greater levels of equity capital than they had before the meltdown.
 
However, a new report from the International Monetary Fund suggests a lot of the debt that was sloshing around on bank balance sheets hasn't exactly disappeared, but merely shifted over to less regulated portions of financial markets - the so-called shadow banking system.
 
"Traditional metrics of leverage in the financial sector have important shortcomings," the IMF said in the report. "Leverage metrics commonly used in the literature are primarily based on bank balance sheet data (to be precise, on-balance sheet data), even though recent Basel rules propose to pick up several off-balance sheet transactions for their monitoring reports."
 
The problem is that "these measures do not fully capture the bank-nonbank nexus, since the size of nonbank funding to banks is not readily available in standard bank databases constructed from on-balance sheet data only."
 
This means that "the omission of off-balance sheet items in the standard measures implies a substantial underestimation of bank leverage."
 
The IMF says "nonbank funding (households and wholesale) is on the rise since the Lehman-crisis, and constitutes a major source of bank credit to the economy."
 
The chart below offers a visual illustration of how the money flows through the system from the more regulated entities to the less closely-supervised ones.
 
___________________________________________________________________________________
 
 
Shadow Bank IMF chart
 
International Monetary Fund
 
The report cites Barclays as a case in point.
 
___________________________________________________________________________________
 
 
Barclays reported a total pledged collateral of £466 billion ($US656.2 billion) in 2016, but only £34 billion ($US47.88 billion) made it onto the balance sheet. The discrepancy is very large considering Barclays reported total on-balance sheet assets of £1.2 trillion ($US1.47 trillion) in 2016.
 
"A fuller view of assets naturally has implications for leverage," the report said. "Barclays' leverage (defined as assets/equity) rises from about 20.7 (based on balance sheet data alone) to 28.1, if their pledged collateral transactions are fully recorded. This rise occurs because pledged collateral transactions that do not make it to the balance sheet-£432 billion-do not have corresponding equity."
 
 
___________________________________________________________________________________
 
 
 
___________________________________________________________________________________
 
 
 
 
 
 

  • 0

#14 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 13 April 2018 - 08:07 AM

The 'balanced-budget amendment' is a joke, says GOP deficit hawk Alan Simpson
 
 
 
 
 
 
April 12, 2018
 
 
 
 
 
 
One of America's most outspoken critics of the $20 trillion national debt who has spent much of his life putting forward bipartisan solutions to reduce it has a message for Congress: Don't pass the "balanced-budget amendment" this week - or ever.
 
"It's madness. It won't do anything to help improve the budget," said Alan Simpson, a former Republican senator from Wyoming. "It's just chest-pounding fakery."
 
He called it the "laugh-er of the century" that House Republicans, who in the past year voted for a large tax cut that the Congressional Budget Office estimates would add $1.9 trillion to the deficit over the next decade and then passed a budget that has more than an $800 billion gap between spending and revenue, suddenly want to act as though they care about deficits.
 
"They have already approved spending into oblivion, even the tea party guys. What a bunch of rascals," Simpson told The Washington Post. "The guys will vote for [a balanced-budget amendment] now to cover their [posteriors]."
 
House Republicans plan to vote on a balanced-budget amendment to the Constitution Thursday afternoon or early evening. It is expected to fail (as it has each time it has come up, including in the 1980s when President Ronald Reagan backed it), but it is seen as a way for some Republicans to try to regain credibility as deficit hawks in the eyes of voters.
 
"Nearly 20 years ago, the U.S. Senate failed by one vote to pass a balanced-budget constitutional amendment. If Congress had sent the amendment to the states for ratification in 1995, we would not be facing the fiscal crisis we are today, and balancing the federal budget would be the norm rather than the exception," said Rep. Bob Goodlatte (R-Va.), the lead sponsor of the balanced-budget amendment.
 
The amendment would mimic laws that 49 states have requiring their state governments to pass a balanced budget each year, according to the National Conference of State Legislatures. In order for the amendment to be added to the U.S. Constitution, it has to pass both chambers of Congress with a two-thirds majority and then be ratified by 38 states, a cumbersome process that would take years.
 
Simpson served in the U.S. Senate and 1979 to 1997, and at the end of his tenure, helped to craft the last budgets Congress enacted when spending was about in line with revenue. The U.S. government ran modest surpluses in fiscal years 1998 through 2001. Since then, the federal government has run deficits each year.
 
On Monday, the nonpartisan Congressional Budget Office reported that the United States is on track to run $1 trillion deficits starting in 2020, an unprecedented scenario for good economic times. If nothing changes, CBO predicts, debt held by the public will skyrocket in the next decade to the highest level since the end of World War II.
 
Simpson says the United States doesn't need a balanced-budget amendment, it just needs lawmakers willing to face reality and make the necessary changes. But he doesn't think "real math" will return to Washington until the debt becomes a national crisis because investors stop buying U.S. Treasurys or they demand much higher interest rates, a situation that would raise the cost of repaying the debt significantly. Once that happens, it would likely raise mortgage rates and small-business-loan rates, hurting a lot of American pocketbooks.
 
"The only thing politicians understand is losing their job. The tipping point on the debt will come when the little guy gets screwed," Simpson predicts.
 
[Fiscal hawk Paul Ryan leaves behind a legacy of big deficits]
 
There are three key problems with the balanced-budget amendment, says Simpson. First, passing it would take a long time. It would be a lot faster for Congress to simply use its powers to balance the budget now - without any amendment. Second, few in Congress, including those planning to vote on the amendment, have plans to balance the budget. Third, the amendment would constrain the federal government, which could take away flexibility in times of national crisis.
 
Simpson was in the national spotlight in 2010 when he co-chaired President Barack Obama's National Commission on Fiscal Responsibility and Reform with Democrat Erskine Bowles, a former White House chief of staff for President Bill Clinton. The committee's final report - dubbed "Simpson-Bowles" - put forward a set of concrete steps to reduce deficits.
 
Republicans and Democrats both deserve blame for the current fiscal mess the nation is in, Simpson said. Defense spending, a favorite of Republicans including President Trump, is "shot through with waste," Simpson said, arguing it should be reduced significantly. Similarly, he thinks social programs such as Social Security and Medicare should be reformed so that Americans no longer get these benefits at the current age - generally about 65.
 
Without congressional action, the Social Security Trust Fund is expected to be insolvent in 13 years, CBO forecast in its latest report. There would still be some money left after that, but it would not be enough to pay people their full benefits, a scenario likely to anger Americans who worked and paid into the system for years.
 
[The unhappy states of America: Despite an improving economy, Americans remain glum]
 
Republicans have campaigned for years as the party of fiscal sanity, but their track record has shown otherwise, with the debt rising significantly under GOP presidents since Reagan.
 
Fixing the budget and entitlement programs was a signature issue for House Speaker Paul D. Ryan (R-Wis.), who started his job in Congress in 1999 when the budget was in far better shape. He has pushed reforms for Social Security and Medicare frequently, but he has not been able to get momentum on them, even from his own party. Instead, Ryan's tenure as House speaker since 2015 has been marked by a huge expansion in government spending.
 
The deficit was $438 billion in Ryan's first year as speaker. The deficit is expected to hit $804 billion this fiscal year, Ryan's last as speaker after he announced his retirement Wednesday.
 
Simpson calls Ryan "one of the top-notch people in Washington" who tried to fight for a better budget but was stymied. President Trump campaigned on not touching Social Security or Medicare, making the issue dead politically for now. So did his Democratic opponent in the presidential election, Hillary Clinton.
 
"You knew we would end up with $1 trillion deficits when everybody running for president in 2016, the boneheads of both parties, said they were not going to touch Social Security, entitlements or health-care costs," said Simpson, who is now in his mid-80s and retired in Wyoming. "We are now in a situation where we aren't going to grow our way out of this."
 
___________________________________________________________________________________
 
 
 
___________________________________________________________________________________
 
 
 
 
 
 

  • 0

#15 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 17 April 2018 - 03:44 PM

The End of the Debt-As-Currency Era
 
 
 
 
 
 
April 17, 2018
 
 
 
 
 
 
We are nearing the end of the debt-as-currency era.
 
This is quite a broad statement and, of course, since debt is the foremost currency of our day, it would be quite understandable if the reader were to regard such a prognostication to be utter nonsense.
 
Indeed, many would say that, without debt, the world couldn't function. Debt has always existed and always will. However, in eras past, debt often played a much smaller role, and those eras were marked by greater progress and productivity.
 
We're now living in the era of the greatest level of debt mankind has ever created. In fact, we've come to regard it as "normal." Most governments are far beyond broke. And they won't be saved by confiscation or taxation, as their people and corporations are just as heavily in debt. For this reason, a collapse is inevitable. And, since the severity of a collapse is invariably directly proportional to the severity of the debt, when it arrives, it will be a collapse that eclipses all previous collapses.
 
The present uncontrolled level of debt is made possible through the ability of central governments to create more currency at will. And this is only possible through the existence of a currency that is fiat in nature-that has no inherent value.
 
Aristotle was right on the mark when he stated that for something to be appropriate as money, it must have intrinsic value-independent of any other object and contained in the money itself.
 
The great majority of what passes for money today is digital, although, for daily use, paper currency is still widely used. But it must be said that paper currency is also fiat, having a far lower intrinsic value than the denomination printed on it.
 
In 1971, the US dollar went off the gold standard-it ceased to be redeemable in precious metal. From that date on, it existed as a promise only-a promise from a government. (Promises from governments tend to be somewhat less redeemable than promises from, say, loan sharks or used-car salesmen.)
 
In time, the rest of the world followed. Today, no national currency is redeemable in anything that has intrinsic value.
 
Doug Casey has rightly called the dollar (since going off the gold standard) an "I owe you nothing." Exactly correct. He also describes the euro as a "Who owes you nothing?" since no one country in the EU is responsible to redeem the euro with anything that possesses intrinsic value.
 
It's hoped by many today that cryptocurrencies will be the salvation of the soon-to-collapse monetary system. Unfortunately, cryptos can accurately be described as "You have no idea who owes you nothing."
 
Cryptos have distinct advantages over other fiat currencies-they allow quick transactions between parties anywhere in the world, independent of any reliance on banks or governments. Unfortunately, though, they in fact have even less inherent value than paper currency. Their inherent value is exactly zero.
 
This does not mean that they won't become more popular, as people seek to extricate themselves from the control of banks and governments. However, cryptos only have a perceived value. Throughout history, whenever the perceived value of a form of fiat currency has collapsed, the currency has returned instantly to its intrinsic value.
 
An excellent example is the tulip mania of 1637, when the perceived value of some tulip bulbs became inflated to the degree that some were sold for ten times the annual income of a skilled craftsman.
 
Whilst we, today, might find this laughable, at the time all that mattered was the general consensus that tulip bulbs would keep increasing in price. As a result, everyone jumped on the bandwagon… and inevitably, rode it over the cliff.
 
In every such case historically, whether it be tulip bulbs, the 1923 Reichsmark, the 2008 Zimbabwe dollar, or the more recent Venezuelan Bolívar, once the collapse comes, no one will subsequently touch the failed fiat currency with a bargepole.
 
What this boils down to is that we're living in an era in which there are more forms of fiat currency in use than at any other time in history… and more are being formed as we speak. So many cryptos are being created at present that we may soon begin to speak of "junk cryptos" as we once spoke of "junk bonds" to hopefully elevate the more reliable cryptos from their cousins. We may even come to speak of "investment grade cryptos."
 
Returning to the subject of debt, the wise investor, when considering entering a debt relationship, should always ask himself, "Who issued the debt? What is it really worth? What is the likelihood that I'll get paid?"
 
If the answer to these three questions is, "I have no idea," it doesn't mean that he shouldn't become involved, but he should recognize that he has passed from speculator into gambler. Some gambles are worth the risk involved, but it's a gamble, nonetheless.
 
Paper currencies have proven to be very risky indeed, particularly as central banks have printed so recklessly in recent times. And, should deflation occur (as seems likely) they've committed to printing as much as it takes to offset the deflation… endlessly devaluing the currency and very possibly leading to hyperinflation (again, as in Weimar Germany in 1923, Zimbabwe in 2008, and Venezuela in the present day).
 
Similarly, bitcoin, regardless of the fact that it's always pictured as a gold coin, is actually an algorithm. It's been promised to be "finite"-to be capped at 21 million. However, this is once again, a "promise"-and a promise from an anonymous creator.
 
Tangible Versus Promissory Collateral
 
At present, we're in the deepest trough of debt-as-currency that the world has ever seen. However, the writing is now on the wall that the end of this era is about to begin, and it may begin in the field of energy. Russia, one of the world's foremost suppliers of energy, has agreed to sell energy to China, one of the world's foremost purchasers of energy. However, it is to be paid, not in US petro dollars, but in yuan, redeemable in gold. This is the first major step in a return to the world of tangible versus promissory collateral.
 
From that point forward, the trend will unquestionably expand to other forms of trade and, I would project, to currencies themselves.
 
But, assuming that the above is true, why should that mean the end of the debt-as-currency era? Surely, debt has always existed and will continue to exist. Quite so. However, in other eras, debt was commonly treated as dangerous and was avoided as much as possible.
 
The acceptance of a currency as real money only exists as long as confidence allows it to. Once that confidence has failed, it's very difficult to sell anyone on the idea of accepting it again. (After the tulip mania collapsed, no one trusted tulip bulb speculation anymore.)
 
National debt is fraud. It creates no wealth. Debt is the monetary equivalent of the emperor's new clothes. The ruse is only maintained as long as people have faith in it.
 
Those who survive the coming collapse will be those who have created an economic insurance policy for themselves, in the form of tangible assets.
 
Reprinted with permission from International Man.
 
 
___________________________________________________________________________________
 
___________________________________________________________________________________
 
 
 
 
 
 

  • 0

#16 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 20 April 2018 - 05:03 PM

Tax Cut Bill Will Lead to Trillion Dollar Deficits
 
 
 
 
 
April 20, 2018
 
 
 
 
 
 
When the "Tax Cuts and Jobs Act" was being considered in Congress this past fall, Treasury Secretary Steven Mnuchin and several congressional Republican leaders predicted a decrease in annual federal budget deficits and the federal debt-the latter of which is essentially the cumulative result of previous deficits-as a result of the new legislation. Last week, however, the nonpartisan and independent Congressional Budget Office (CBO) issued projections that show massive increases in deficits and debt relative to the projections made before the tax cut bill was considered. The broken tax bill promise, coupled with the threat that President Donald Trump and his allies will seek to address the budget hole with cuts to programs such as Social Security, Medicare, and Medicaid, should be of great concern to the American public.
 
Last year, administration officials and majority leadership were effusive in selling their tax plan. Secretary Mnuchin predicted that, "Not only will this tax plan pay for itself, but it will pay down debt." Senate Majority Leader Mitch McConnell (R-KY) went on an ABC news program and said, "I'm confident this is not only revenue neutral to the government, but actually it's very likely to be a revenue producer." In other words, McConnell claimed that the bill would not just be deficit- and debt-neutral but that it would actually reduce deficits and the debt. Sen. Pat Toomey (R-PA) echoed this sentiment. On the night of the bill's vote, he told colleagues on the Senate floor: "I am convinced that when we pass this legislation and it is signed into law, the Federal budget deficits will shrink as a result of this legislation." It is critical to note that these congressional GOP leaders did not simply predict that deficits and debt would be level as a result of enacting the tax cut bill; they predicted that they would actually fall. Those predictions were dramatically out of line with the official estimates of the final bill from the CBO and the Joint Committee on Taxation (JCT), which projected that the bill would add $1.5 trillion to deficits over the next decade, or $1.1 trillion including macroeconomic effects-the official estimates did not include the cost of extending tax cuts beyond their expiration dates, or additional interest on the debt. Multiple independent analyses of the tax bill also predicted that it would add at least $1 trillion or more to deficits.
 
Last June, before the tax cut bill was considered, the CBO predicted that the federal deficit in the upcoming fiscal year-FY 2019-would be $689 billion. Last week, it issued its new projections for the federal budget and the economy, which estimated a dramatic rise in deficits and debt compared with the agency's earlier projections. The CBO estimated that the federal deficit would be $980 billion in FY 2019, a 42 percent increase. Moreover, the CBO estimated that the deficit will exceed the iconic $1 trillion figure in FY 2020 and beyond. In addition, the increase for FY 2027-the end of the 10-year budget window-is substantial. Last June, the deficit in FY 2027 was estimated at an already large $1.463 trillion. Last week, the CBO estimated that if current policies for revenues and outlays-including the tax cut-are continued through FY 2027, the deficit in FY 2027 will be a massive $1.851 trillion, a sizeable 27 percent increase.* (see Author's note)
 
One can better understand the full impact of these huge deficits by examining federal debt held by the public as a percent of gross domestic product (GDP). Today, such debt is projected to be 78 percent of GDP by the end of FY 2018. Disturbingly, the CBO now projects that if current policies for revenues and outlays-including the tax cut-are continued throughout the next 10 years, federal debt will be an enormous 105 percent of GDP at the close of FY 2028.** This would be the highest such percentage since 1946, when the huge costs of World War II ballooned federal debt.
 
There are at least two major reasons for these increased projections.
 
First, more information is now available about the effects of enactment of the tax cut legislation. During the debate on the bill, the CBO and JCT estimated that its enactment would dramatically increase federal deficits and debt. Now that several months have elapsed since the bill's signing into law, there has been opportunity to update how much estimates of receipts may have changed due to the changes in the law. For example, the CBO reduced its estimates of receipts of individual income taxes for 2018 because of the new withholding tables issued by the IRS in January 2018. Although the CBO and JCT project that real GDP will be a little higher in 2027 than estimated in the absence of the tax cut, they see no signs of huge increases in real GDP, productivity, investment, and wages, which were promised by the proponents of the tax cuts in order to sell this massive giveaway to corporations and the wealthiest Americans. The CBO now projects that the tax bill will add $1.9 trillion to deficits from FY 2018 through FY 2027, or $1.4 trillion including macroeconomic effects-with neither figure including the cost of additional debt service. The cost of the tax bill will be much more if expiring provisions are extended. In other words, as expected by most serious analysts, the tax cuts will not come close to paying for themselves.
 
Here is another way to look at the estimates. Last June, the CBO had forecast that real GDP would increase by an average of about 1.9 percent per year during the next 11 years. The proponents of the tax bill, such as Sen. Dan Sullivan (R-AK), claimed that the CBO's projections were too low. Sullivan made the particular argument that the CBO's projections were not high enough because in past years real GDP growth was often 3 percent or more. Unfortunately, these analyses overlooked an important economic point. Real GDP growth is the sum of two numbers: productivity growth and growth in the size of the labor force. Over the next 11 years, growth in the labor force is projected to be only about 0.5 percent per year as the baby boomers are retiring and the female labor force participation rate has reached a plateau. Meanwhile, productivity is projected to grow by about 1.4 percent per year. Thus, the CBO's new report continues to project that real GDP will increase by about 1.9 percent a year, which is similar to its projection from last June.
 
The second reason for the increased projections is that legislation enacted on February 9, 2018, will increase projected discretionary spending over the next 11 years and beyond. The spending bill, which was called "The Bipartisan Budget Act of 2018," directly undid damaging cuts to nondefense discretionary spending in FY 2018 and FY 2019 and made room for important increases in those years while also increasing defense spending by $80 billion in FY 2018 and by $85 billion in FY 2019. Moreover, under the CBO's alternative fiscal scenario, which assumes that current policies in FY 2018 are maintained from FY 2019 through FY 2028 for mandatory spending, discretionary spending, and revenue-including extending the expiring provisions of the tax bill-the increase in discretionary spending in FY 2018 would be carried forward into each of the subsequent 10 years, plus amounts to cover inflation. If this were to occur, the deficits in those 10 years would be much larger than the more standard CBO projections of deficits, which only account for the costs explicitly stipulated in current law. Therefore, debt at the end of FY 2028-the close of the 10-year period-would also be much higher: 105 percent of GDP.
 
The CBO is now projecting a dramatic increase in federal deficits and debt relative to its estimates last June, before the tax cut bill and the Bipartisan Budget Act were considered. This contradicts forecasts from the Trump administration and congressional majority leaders. Ultimately, what makes the current fiscal situation truly unfortunate is that the tax cut bill represents money thrown down the drain-or worse, a wealth transfer upward-rather than an investment in productivity enhancements, poverty reduction, and other needed public goods. This waste of America's fiscal capacity should be a source of regret for those who have long claimed to be good stewards of America's balance sheet.
___________________________________________________________________________________
 
Alan Cohen is a senior fellow at the Center for American Progress.
 
*Author's note: The CBO provides deficit and debt estimates in at least two different ways. By statute, the CBO must provide "current law" estimates, which assume that the letter of the law is followed. For example, if a law is sunset after a certain number of years, the CBO must assume that the sunset occurs, even if it is politically unlikely to take place. In last week's report, the CBO also provided "current policy" estimates, which assume that current policy continues if it is politically likely to do so. The CBO numbers from last week's report that are used in this column are the CBO's current policy estimates, which the CBO refers to as its "alternative fiscal scenario." The $1.851 trillion figure also uses a calculation by the author.
 
**Author's note: The 105 percent of GDP figure for the debt is also a current policy estimate.
 
___________________________________________________________________________________
___________________________________________________________________________________
 
___________________________________________________________________________________
___________________________________________________________________________________
 
 
 
 
 
 

  • 0

#17 Traveler

Traveler

    Registered User

  • Members
  • PipPipPip
  • 2087 posts

Posted 20 April 2018 - 07:18 PM

Deu 23:19  You shall not lend at interest to your brother; interest of silver, interest of food, interest of anything loaned at interest.
Deu 23:20  To a stranger you may lend at interest, but you shall not lend at interest to your brother, so that Jehovah your God may bless you in all that you put your hand to, in the land where you go to possess it.
 

Deu 28:12  Jehovah shall open to you His good treasure, the heavens to give the rain to your land in its season, and to bless all the work of your hand. And you shall lend to many nations, but you shall not borrow.
Deu 28:13  And Jehovah shall make you the head, and not the tail. And you shall be only above, and you shall not be beneath, if you heed the commandments of Jehovah your God, which I am commanding you today, to be careful to do them.

 

There you have it. The nations will always get into trouble financially where the interest banking systems are employed. Ban an usury financial system and things will get better.


  • 0

#18 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 21 April 2018 - 08:50 AM

BORROWED MONEY, NEVER TO BE REPAID
 
THE DEBT WIPED OUT BY NUCLEAR WAR 
 
IT'S THE AMERICAN WAY
 
 
There_s_no_way_like_the_american_Way_Bil
 

  • 0

#19 Bruce M Cow

Bruce M Cow

    Advanced Member

  • Members
  • PipPipPip
  • 980 posts

Posted 21 April 2018 - 10:17 AM

Simple just don't pay a dime .


  • 0

#20 grog

grog

    Advanced Member

  • Members
  • PipPipPip
  • 4527 posts

Posted 22 April 2018 - 08:33 AM

What is the U.S. getting for its $1 trillion deficit?
 
 
 
 
 
 
April 19, 2018
 
 
 
 
 
 
In 2012, Speaker of the House Paul Ryan (R-Wis.) worried about the $15 trillion national debt. 
Now as it exceeds $20 trillion, Ryan is backing a tax bill estimated to add trillions more to the debt. (Nov. 10, 2017)
___________________________________________________________________________________
 
According to the non-partisan Congressional Budget Office, taking into account the recent tax cuts and latest spending bill, the federal budget deficit will surpass $1 trillion by 2020, and the national debt will rise to a staggering $29 trillion by 2028.
 
One would think that such an enormous level of deficit spending would befit a nation with the world's best health care system - one that is available to everyone. It might be expected to foster a public school system that is second to none, with well-paid teachers helping to produce an informed and engaged citizenry and a workforce fully prepared for the 21st century economy. You may expect to find state of the art infrastructure, with efficient and well-maintained roads and public transit, and a high-speed rail system connecting all major cities. Such spending levels would also seem likely to result in services that would promote significant reductions in levels of poverty, addiction and violent crime. It might be used to energize an economy that takes full advantage of the investment and employment opportunities offered by continuing advances in technology and the use of clean energy and renewable sources.
 
Yet, despite our prolific spending, we fall far short of realizing the quality of life that our outlays suggest we should expect.
 
Our fiscal policies have brought considerable benefits to some, particularly those with the highest levels of wealth, but they have not advanced a broad vision of an expansive economy that lifts the general welfare. For example, rather than providing tax benefits where jobs are created, we implement non-targeted tax cuts in the mere hope that jobs will somehow magically follow. In the meantime, while some benefit handsomely from a lowered tax rate, we continue to accumulate massive debt by our insistence on reducing revenue without cuts in spending.
 
For nearly 40 years now, we have been hearing how tax cuts, which have consistently had the effect of providing the largest benefit to the highest income earners, will pay for themselves in the resulting robust economy - the so-called supply-side theory of economics. The problem is, it has never worked out that way.
 
When President Reagan took office in 1981, the highest individual tax rate was 70 percent, and the corporate tax rate stood at 46 percent. The top individual rate was then cut all the way down to 28 percent, and the corporate tax rate was reduced to 40 percent. While economists debate whether the subsequently improved economy was owing more to tax cuts or the reduction in interest rates - the rate the Federal Reserve charged to banks had reached a whopping 20 percent - the one thing that is clear from the Reagan tax cuts is that the lost revenue was not replaced.
 
In fact, those tax cuts helped lead to unprecedented increases in both the federal budget deficit and the national debt. While President Reagan did cut spending on domestic programs, he essentially wiped out that savings with increased defense spending. The failure to offset tax reductions with meaningful spending cuts, in the belief that those losses would be replaced by a booming economy, ballooned the budget deficit from $79 billion at the end of the Carter administration in to $153 billion at the end of Reagan's, and the national debt jumped from $998 billion to $2.8 trillion during the same time period. Additionally, the stock market crashed in 1987, and a subsequent recession added even more to the red ink. By the time George H. W. Bush left office in January 1993, the budget deficit had risen to $255 billion, and the national debt had grown to $4.4 trillion.
 
Further lessons can be gleaned from the experience that followed the George W. Bush tax cuts enacted in 2001. At that time, as a result of intervening tax increases, the top individual rate stood at 39.6 percent. By then, however, the budget deficit had been entirely eliminated during the Clinton administration, and budget surpluses were realized in each of the final four Clinton budgets. The national debt had continued to rise during the Clinton years, but not as dramatically, reaching $5.8 trillion. The Bush tax cuts reduced the top individual rate back to 35 percent and significantly reduced the capital gains rates. Once again there was no effort to reduce spending. The very first Bush II budget erased a $128 billion surplus and replaced it with $158 billion deficit. By the end of the Bush II administration, the costs of the wars in the Middle East, a prescription drug benefit in Medicare, and the bank bailout helped produce the first trillion dollar deficit. The national debt skyrocketed to $11.9 trillion.
 
On top of that, the economy collapsed with the housing and mortgage crisis, resulting in the Great Recession and prompting enactment of the stimulus package during the Obama administration, which included an extension of the Bush tax cuts, a reduction in payroll taxes, and tax cuts extended to specific industries. Subsequent budgets cut the deficit to a low of $438 billion in fiscal year 2015, although it has since risen above $660 billion, but the national debt has catapulted to an astonishing $20 trillion.
 
When contemplating a budget deficit consistently exceeding $1 trillion, and a national debt approaching $30 trillion, given the many quality of life issues with which so many are confronted, one has to wonder just what we are getting for all of that money. And all signs suggest that we will have to continue to wonder.
 
___________________________________________________________________________________
 
___________________________________________________________________________________
 
 
 
 
 
 
 
 

  • 0





Also tagged with one or more of these keywords: DEBT

0 user(s) are reading this topic

0 members, 0 guests, 0 anonymous users

Copyright © 2018 Pravda.Ru