This might be a last warning

[WhiteWolf]

The last chart on this page shows how much of US Treasury Debt is bought by foreign entities, the Fed and us little guys (through whatever retirement accounts we have). When Americans are tapped out - or stop having faith in the gov - a default is imminent unless the foreign purchases start going back up.

https://www.zerohedge.com/news/2019-06-12/who-really-funding-uncle-sam

 

[Optimist]

Well, we're closer to the reef than the ship of state ought to get. Raft-building, anyone?

 

[240Geezer]

PFDs for everyone!

 

[NoFlyZone]

Put your money in infrastructure at your alamo.
Spend it on practical things necessary for keeping you and yours alive, warm, dry and fed.

 

[WhiteWolf]

That's my standard strategy, NoFly.

 

[The Branch Manager]

This article seems in the same vein. Rickards says its coming this fall, but he's said that for the last 27 years.

https://dailyreckoning.com/the-perfect-storm-2/

 

[240Geezer]

Hard assets.
About the only safe haven as I see it.

 

[WhiteWolf]

Well, ZH is now saying as early as 2024, interest on the debt will start to equal (then outpace) the borrowing. Everything borrowed will go just pay the interest.

https://www.zerohedge.com/news/2019...-issuance-will-be-used-pay-only-interest-debt

 

[HandLoad]

....an that might be why Repubs are signing onto the "Budget", which includes INFINITE Borrowing!

 

[sauced07]

The facade is the critical part. As long as TPTB can keep up appearances people will stay relatively quiet. Once the whole world knows we’re broke and the citizens realize their retirement, pension and or social security is gone and that money in their pockets is pretty toilet paper that’s when things get interesting.

 

[sauced07]

That might actually explain why the democrat candidates all are offering free everything. They know it’s coming down and none of their promises will matter.

 

[Mattsn]

This article seems in the same vein. Rickards says its coming this fall, but he's said that for the last 27 years.

https://dailyreckoning.com/the-perfect-storm-2/

That last sentence is what I notice. I'm not saying that a huge economic disaster isn't coming however I've been told this since I was a teenager. It's always right around the corner. Yet we're still plugging away. Economies arw always up and down. It's normal. Again I'm not saying it won't happen. But I have trouble putting alot of faith in these articles. One day someone will be right. But only after they've been predicting it for 10 years

 

[WhiteWolf]

It's been 17 now Matt. I think that as long as financial literacy keeps dropping and the media/gov keep spinning reality to suit their purposes... we'll keep hanging in. But at some point, the average person will get a clue that it's starting to fall apart.

 

[sauced07]

It’s like your own finances. Keep getting those credit cards in the mail and keep spending. It’s fun for a while till one day your expenditures pass your income. Why do you think Trump is trying to get interest rates back down

 

[Edgar Friendly]

It's been 17 now Matt. I think that as long as financial literacy keeps dropping and the media/gov keep spinning reality to suit their purposes... we'll keep hanging in. But at some point, the average person will get a clue that it's starting to fall apart.

I don’t think the average person will ever get it.

 

[WhiteWolf]

The Fed's interest rates have absolutely nothing to do with credit card rates tho, have you noticed? Only your savings accounts.

 

[Mattsn]

No I do get it. And again. I'm not saying it won't happen. I'm saying every week there is another prediction of when it will happen.

 

[sauced07]

The Fed's interest rates have absolutely nothing to do with credit card rates tho, have you noticed? Only your savings accounts.

I know. My reference was to spending beyond your means. It can be done for a while but it hurts bad when you hit the wall.

 

[sauced07]

No I do get it. And again. I'm not saying it won't happen. I'm saying every week there is another prediction of when it will happen.

A good analogy is a train derailment. Many times the cause of the derailment is a ways down the track but due to the weight and speed of the train it takes a while to actually derail. The economy and the federal reserve and whatever else is at play is like that huge 60 mile per hour freight train ripping down the track.

 

[Mattsn]

Yes I understand the concept. I'm not arguing if it will or it won't happen or even how it will happen.