How does the usa's ability to take in loans stop?
It's the sickest ponzi scheme of all time. I know a nations financial ability and reputation are very important so even countries like Sweden if they started to collapse could at least take a lot of loans out due to it's healthy banking reputation. But why the fuck would any sane person lend to the US government? isn't anybody pissed that they aren't getting their money back?
When does this ponzi scheme end? I personally think its all a fucking facade and people just loan the usa and get other privileges for that knowing they won't get their money back.
Notice how like 5 or 10 years after the 1965 immigration act the usa already started to go to shit and start heading towards extreme levels of debt.
Who is loaning the usa money and why?
Seems like the FED is by far the #1 choice here,
the article says: Nightmare Scenario: The Fed actually decides to get "independent" and refuses to go along with reckless spending.
The fed seems to work like a giant jewish superbank that all the jewish banks use to get money, and it itself is just a printing machine used to enslave and fuck up the usa economy! how long till the usa is Zimbabwe 2.0 just like what happened when there were not enough whites anymore to hold the country up
It ends like all ponzi schemes: when there's no way to keep it going any longer.
>doesn't understand central banking or economics
thanks for playing along pal
I take it you've never looked into how the 3rd Reich got the money it did...
>isn't anybody pissed that they aren't getting their money back?
Lithuanian education. Google how bonds work.
china, it makes them money
pretty soon nobody
They issue bonds and anyone can buy them. Main buyers are usually institutional investors such as pension funds.
Itself.
Yes, it's just as bad as it sounds.
and why aren't those bonds rating going to shit? they are fucking worthless! The only reason I can find that it isn't collapsing is that it is a lot of money but it has a decent level of diversification so the likelihood of everyone wanting their money back or moving away is almost 0.
that's fucked so the future generations are going to end up more and more in debt.
Yes, and when it falls apart people with pensions and retirement funds will be left holding the bag. But until then, those bonds are relatively safe.
"Best of the worst" means you still win the game in the mind of a kike.
The good news is the magnitude of debt doesn’t matter.
5 trillion is social security and the likes. They call it intergovernmental holdings or something.
thebalance.com
Actually 5.6 trillion.
Since the boomers are retiring this wont be a lender anymore in the future since the social security fund and the military pensions fund etc will need to start selling some of that debt.
If the fed also stops we are looking at a huge gap to fill. This is almost impossible to end well. Definitely now that the deficit is continue to rise to 1 trillion and beyond.
Other players are foreign governments like China and Japan at over 1 trillion.
Besides that most players are relatively small.
The deficit is now projected at 1 trillion. 450 billion is being spent on interest on debt. That is at record low rates but record high debt levels.
Since the rates have been rising for a couple of years now, this interest will also start to rise. This will make the deficit bigger and will increase the offer of debt which will in turn lead to higher rates. In the end it will likely spiral out of control. If in 5 years debt stands at 25 trillion and the average interest to be paid is 4%, that is 1 trillion in interest on debt alone.
(((They))) will surely want to collapse it under Trump.
Thing is they can't let it collapse without some other bigger crisis like a world war so people don't just go out and start hanging bankers. Should be a fun ride.
The debt is also owned by other economies such as China, Japan, Britain, Germany, France it is the reason why when the DOW drops you see other economy indices of other countries do the same. The U.S. is part of the global economic machine which rules this age and is the same kind of strange machine which ruled the bronze age before its mysterious collapse.
>likelihood of everyone wanting their money back
The bonds aren't callable, you can't demand your money back, only sell the bond to other investors.
The US debt is cheap (low yield) because it's the worlds biggest economy, reliable and unlikely to go bankrupt any soon. Also, the interests rates are low. Still, the US has a higher yield than some other countries like Switzerland or Japan, but that's mainly due to low interest rates.
In fact, think about it like this: the US is almost a quarter of the global economy. If some other country, say Spain, goes down, it will hurt the United States, but will not cause massive problems. If the United States goes down, the entire world will fucking crash. So in what country would you rather invest?
econimica.blogspot.ca
The public are the only people left able to purchase treasuries, America is beginning Japanese style economic policy
>Who is loaning the usa money
Money is printed out of thin air by modifying a few digits in a computer file
China gets paid back from their bond holdings and uses the money to buy up all our infrastructure.
so the us people are sold off like cheap whores just because everyone wants to fuck them as they are the hottest girl in town.
I feel like New Zealand or Australia would be relatively safe from war or crisis, Also Japan would survive I think, Europe and the rest of the world would be affected the most.
don't worry lit bro
this is part of the plan
the jews want their money, at all costs
let them have it, at our costs
we need this crisis more than they do
we need to find ourselves again, and that is only done in true despair, when one doesn't even have the money to feed his children
The future is a bright and white one
and we're accelerating towards it
This. Nobody "loans" it exactly. It's kind of a charade for the fact that the treasury needs to finance its congressional budget, but they aren't allowed to directly print money. The primary dealers are compelled to participate in treasury auctions, and the federal reserve has processes in place to make sure that they will have the money to buy treasury bonds. China buys bonds only because they export to us, and receive a lot of dollars. It's just a safe asset class that they park their dollars in, in lieu of buying American goods or investing in the country. We aren't dependent on them buying bonds, though they'll do it anyways because it makes sense. Why hold inert cash when you can at least have a bond?
We’re not that safe anymore. The Chinese are so invested in us now.
Debt vs deficit
Yeah, I switched mostly to treasury bills via treasuredirect now, no state tax on interest anymore
Central banks print money and buy up the debt. On a side note a central bank just got caught paying youtubers to spread anti-crypto propaganda. I wonder what else they are paying for.
Still, Russian whores are the cheapest.
M8, everyone is dependent on the American economy. Remember 2007? Well that was just a recession, and the whole world shattered. If the US collapses, the whole global economy will collapse, no country will be safe. I repeat, everyone will be fucked. So of course, given how dangerous it is, we know for sure that even if the US does badly, the whole world will unite to support its economy as it is way too fucking big to fail.
Are you one of those google fags?
Order of collapse
Third world
>already in a state of collapse
Periphery
>Venezuela
>Brazil
>South Africa
>Syria
>Turkey
>countries with debt in USD about to get buttfucked by interest rates
>already collapsing
Developed with high debt
>Japan
>EU
>Canada/Australia
Then the capital will flow into america seeking safety and then we have the 1929 minsky moment
Sup Forums doesn't econ101: the thread
the debt will be pardoned after the north american union and the amero becomes a reality