by Tyler Durden
May 4, 2017 7:05 PM
With debt ceilings, spending plans, and tax reforms focusing all eyes on Washington, we thought it notable that for the first time in US history, the cost of interest on US government debt has risen above half a trillion dollars…
Source: @NorthmanTrader
One wonders, given the grandiose spending plans, if we will ever get back below half a trillion dollars?
It’s just like the pending white genocide in S Africa. Whenever it collapses, it’ll happen fast.
No, we will never get below a half a trillion dollars. Trump will spend like a drunken sailor on tax cuts, infrastructure, military hardware all the while ignoring all entitlement spending and then when he has gotten all he can will institute a massive devaluation. It is his only way out. It is the standard approach for all real estate investors. Buy at or below market (if you can) then inflate away the debt. If you can’t get inflation high enough or fast enough then devaluation is the only other way. A massive devaluation followed by some form of precious metal backed currency and he could come out smelling like a rose, all his real estate would be virtually free and clear. All the foreign held debt would be wiped out. It would hasten the demise of the US dollar as the world reserve currency but that is coming anyway. A win-win for the US and it’s fly over citizens.
Just wait until the interest rate on it hits 4%, 5%, 6%…
Wish in one hand and shit in the other…
Anyone else remember 18% under Jimmy?
Yep. This is the lilypad analogy in real practice. We have just crossed the point where the sun is blocking 50% of the pond. Next single doubling and we are done. The ONLY question now is does the Fed raise rates now and this happens sooner, or does the debt just double at its current rate, and we just wait 3 years. Either way, we are done.
Math does not care whether you are democrat, republican, or alien. It just is. I wonder if Trump and his staff can do simple math on a spreadsheet? If they can, the only question they should be asking themselves is, what do we do when this comes crashing upon our heads. Any other talking points is rearranging deck chairs on the Titanic.
It will only go below half a trillion when it goes to zero and we have defaulted on it all and the entire system ceases as we know it.
Blah blah blah. Sorry but I don’t believe it will ever crash.
it’s been 23 years since I first read the book “Bankruptcy 1995”. No it didn’t come then and even though it seems obvious that the government Ponzi scheme we are living in can’t go on forever, it feels like it’s doing just that.
…and that will be what collapses the financial system.
Well, Apple stock made a new high yesterday, so all is good in the USA now…..whew, thought we were in trouble there for a minute.