Debt threshold

Discussion in 'Financial Cents' started by jeeptj1978, May 27, 2014.


  1. jeeptj1978

    jeeptj1978 Monkey

    What do you think the debt threshold is before the rest of the world sincerely dumps their dollars into the market out of self-preservation? $20 trillion? $25 trillion?
     
    Mike likes this.
  2. gunbunny

    gunbunny Never Trust A Bunny

    It's hard to say.

    I thought we reached the limit years ago, but obviously not.

    There must be enough secret deals holding the whole thing together that it is preferable to wither and die from a slow burn than to dump the reserve currancy and have your "stuff" hang out for all to see.
     
    Mike, Moatengator and VisuTrac like this.
  3. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    We will go broke very very slowly, then all of a sudden.
    Look at Japan's national debt it's something like 1 quadrillion yen (9.8 trillion USD).
    Yes, it is smaller than that of the US debt, but as a percent of gdp .. it's 237% OMG!!!
    yep, last year they bought into the idea of Quantitative Easing (QE) and with their aging population, they are never going to pay it back.

    The farce will continue until finally, someone says the emperor has no clothes, and someone actually listens.

    It's just a game. Unfortunately, as long as everyone keeps playing we just keep kicking the can down the road.

    What will end it? I dunno, cracked crystal ball tells me:
    a) USD is no longer the petro dollar king.
    b) Someone fires off a nuke.
    c) Biological genie goes rogue.
    d) Mother nature goes on a continent wide killing spree.
    e) China says piss on US treasuries and writes it off.
    f) Someone figures out China's economic boom is really smoke and mirrors as their infrastructure expenditures are rotting unfinished
    g) The rest of the globe attacks the US.
    h) Big old meteor comes behind the sun and Bruce Willis can't find a ride into space to stop it.
    i) Class X scores a direct hit.
    j) MERS mutates and transmission goes latent aerosol.
    k) the bees all die.

    And of all the things listed above, I can control none of them. So I'm just going to keep on keeping on.
     
    nathan, Brokor, Sapper John and 9 others like this.
  4. gunbunny

    gunbunny Never Trust A Bunny

    Realistically, it will have to come out of left field. Since the markets are rigged, you cannot base predictions of a collapse by interpolating data from previous crashes and looking for clues. They (the riggers) won't let that happen, or too many people would make a profit on the collapse. That cannot be allowed, if the maximum amount of money is to be made off of what is left of the middle class.

    Fundamentals be dammed, and do the opposite. Until it is time not to. When is that? Look for b,c, or d in VisuTrac's post above.
     
    nathan likes this.
  5. Seacowboys

    Seacowboys Senior Member Founding Member

    Andy,
    ....now my day is really screwed up
     
  6. jeeptj1978

    jeeptj1978 Monkey

    VisuTrac "USD is no longer the petro dollar king."

    Funny you mention that. I was home from Iraq about 8 years before I finally realized we were there because Saddam was selling oil for Euros. If we loose the petro dollar, it is going to hurt us badly. According to Newsweek, we have about 4 years until the dollar is way down the list for oil trade. Hopelessly replaced.

    I get the feeling we are looking at another World War over who owns the petro currency, or we are going to accept an economy where our dollars are worth pennies. IMHO.

    The further we go in debt, the more incentive there is to dump the dollar though, in my opinion, because at some point some people have to look at that debt ratio and say, "Hey, we do not want dollars because in a month the US government may not honor those dollars." I look at it like this......if a business was offering me a $1,000 factory credit for buying a new product on special, and I knew the factory brand is $25 million in debt, I'm not going to consider that credit as part of the bargain because by tomorrow the brand could be filed for bankruptcy. So how long can you honor the dollar of a country that goes 20 or 30 trillion dollars in debt?
     
    nathan likes this.
  7. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    Don't worry. All the fiat will be replaced with IMF SDRs
    What is that you say?
    It's a fictitious fiat currency for sovereigns to play with.
    It even has an exchange rate.
     
    Brokor likes this.
  8. gunbunny

    gunbunny Never Trust A Bunny

    Little by little, the threads that hold up the world's economies are being cut away.

    More On China's "Missing Commodity" Scandal: Fallout Spreads As Banks Get Involved | Zero Hedge
    Have Questions About The ECB's Unprecedented Negative Deposit Rate? Call This Guy | Zero Hedge

    Two stories from different parts of the world. The story in China is about the unfolding problem of renting your commodities to others and are surprised when they are no longer there- just paper exists. The story about the Euro central bank has to do with letting the banks charge their customers for keeping money in their bank accounts.

    It might not sound like much, but this is just two days worth of news. When people all over start to wake up to the fact that the prices of commodities are basically made up, do you think anyone is going to keep playing that game? If your bank (not here in the USofA, not yet, anyway) would suddenly charge you to keep money in your savings account, do you think many people will rush to get their money out?
     
  9. HK_User

    HK_User A Productive Monkey is a Happy Monkey Site Supporter

    Just made a 3000 mile trip through the plains states, plenty of jobs and many are in the petro area.

    Two good clean chain motels were full up with Oil Field Trash ( I can say that I was one) doing work overs and new wells.

    Had to go another 60 miles to find a place to stay in OK.

    YMMV
     
  10. oldawg

    oldawg Monkey+++

    Having been in the patch a good portion of my adult life, roustabout, deck,mechanic and years of specialized transport, I have rarely seen it booming like it is now. Any able bodied person can get a job that certainly pays way better than living in Mom's basement sniveling about how they can't get a job in their chosen academic field. Said choice probably made with how little actual sweat they would have to put out. Got no sympathy for the little :cry:.
     
    kellory likes this.
  11. kellory

    kellory An unemployed Jester, is nobody's fool. Banned

    What I do for s living has no relationship to my chosen college path either.
    I'm a licensed broadcaster. Do you know the difference between a broadcaster and a pizza? A pizza can feed two people....;)
     
    oldawg likes this.
  12. HK_User

    HK_User A Productive Monkey is a Happy Monkey Site Supporter

    No doubt!

    I found KCK to be a bit more booming than KCMo. Not sure why but politics and unions in KCMo may be causing them to dwaddle behind KCK.

    I kinda figure that part of the unrest in the old 7 sisters region is they have figured out that the US has a bt more Independence than they first thought.

    I doubt you will ever see such a thought in the mainstream media, but!

    Noticed that the Casinos in Kansas did not serve free drinks, good deal in my eyes, bar prices cut down on the drunks.
     
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