The federal government is generating a deficit on par with 2007 every two weeks.

submitted by magnora7 from (zerohedge.com)

all 8 comments
sorted by:
top
newinsightfulfun

[–]magnora7[S] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (0 children)

This is a very zeitgeist-y article imo, in a time where it's hard to articulate what is happening

[–]Zapped 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (4 children)

I don't know that this applies to debt in general, but the type of new debt we have (Covid-economic stimulus through the printing of money) is causing inflation already. Assets and commodities are more valuable than money right now.

[–]magnora7[S] 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (2 children)

In 2008 when they printed the money and gave it all to the banks to bail them out, all the money stayed in the stock market and wasn't redistributed at all, which contained consumer price inflation.

But this time... the money is being spread around a lot more, so the effects of inflation are going to become more visible in everyday purchases

[–]Jesus 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (1 child)

Are there not also those Zombie banks who just hold all the money and lend to nobody.

[–]magnora7[S] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (0 children)

Usually they just buy stock with it, so they can at least make some interest. It's a waste of money to just sit on a big pile of cash and not do anything with it, from a financial earnings perspective.

[–]Jesus 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Debt is now money. Get rid of banks and the people win. Bring back holdng houses at post offices, silver certificates, and have silver reserves 1/4 above issuance!

[–]Questionable 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

Maybe. But isn't most of the power of finance now under the treasury, thus cutting out the federal reserve and effectively socializing the American currency?

I mean, what exactly are the Rothschild banks going to do, spur on hyper inflation? The fractional baking system may say that the world owes them 500 trillion dollars, but doesn't that in fact mean the banking system, and the Rothschild banks are actually the ones with 500 trillion dollars of debt on their books, while we are the ones holding the money they loaned us?

[–]scrubking 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Govt doesn't shrink it only grows.