The Worthlessness of Our Money

[pharmer]

........We have $50 TRILLION in unfunded liabilities. There's no way we're ever going to pay that - even if we taxed everyone at 100%.

Better add $100 TRILLION to that number. Go back a page to the "Debt Clock, we are at $153 TRILLION and adding about a million every 3 seconds. Joe

 

[Ματθιας]

Better add $100 TRILLION to that number. Go back a page to the "Debt Clock, we are at $153 TRILLION and adding about a million every 3 seconds. Joe

I didn't know it was that much!

What's another $100 Trillion? I mean really! The numbers are so mind numbingly big, it's not even funny!

 

[Golddollar]

I have investments in precious metals. Steel, copper and lead.

 

[Absalom]

.....
But Basically you can go Keynes however reality is a "Pizza" and the more money you print the more slices you get. Trick is to make the pizza bigger. War makes big pizza fast, Covid lockdown/ uncertainty/ unemployment don't make no pizza at all.

Sorry, not at all. Exactly the opposite.

That's why the US was at its record debt right after WW II, approx. 113% of GDP, which is the only number that matters, not all the silly numbers like "debt calculated per household" and such invented to scare people, or absolute amount of trillion gazillion dollars, which is meaningless.

Our debt has been back above 100% for some years, and if the last tax cut is made permanent, pre-Covid projections (for whatever they're worth) had us back at that post-WW II level of 113% by about 2028. The Covid slowdown and increased spending will certainly speed that up.

But it's all about the size of the productive economy. And a war economy is only profitable if somebody else is having the war and you're selling them stuff.

 

[pharmer]

Sorry, not at all. Exactly the opposite.
That's why the US was at its record debt right after WW II, approx.

And it was paid off using cheaper dollars created by a wildly, rapidly expanding post war economy. Which has disappeared, forever. Joe

 

[Ματθιας]

The US has been operating with a war economy since Korea. We've been at perpetual war since then and will be for the foreseeable future. Why else is our military is the biggest and most expensive?

Then we go fight wars in third world countries and stay there for years and years spending billions with no one knowing or saying what victory is.

Am I wrong?

 

[Golddollar]

Not so much charmed. I couldn't afford college but I could go to work. As a young man, I commonly worked two (2) jobs at a time, 60 80 hours a week and it was worth it to me. When my friends financed a new, super cool car, I saved up my cash and bough used, with NO financing. I was the "working poor" but while I was/am uneducated, I made a point of earning, saving, studying, investing while developing relationships with men as mentors that were 30 years older than me.

You never were and still are not uneducated. You got your degree from the School of Experience, where the school colors are black and blue.

I used to do foreclosures and some collection work so I learned about other people's problems with geting overextended on debt.

 

[moralem]

Don't worry...it's all over in a relatively short period of time.....it's called death. Some are lucky and have to navigate this morass for what, 80-85 years...average male life span is now just over 76 years....if'n your a pup I get your anxiety but an ol' timer like me I am just happy to wake up this morning, see the faces of the grandkids and have a few bucks in my pocket ....or whatever it's called...bonds, equities, precious metals and gems, digital currency, livestock and those hard goods, pew pews you mention It's all going to out last me because I don't have another 75 years in me....let alone another 10-12. Step back from the key board and take a deep breath......see dont you feel better already.

 

[IronSkillet]

Great post PP, could I add or expand on something you mentioned for the sake of good discussion concerning the Fed and printing of fiat money. We have created a society with the younger generation that relies on plastic to do everything. How much more cash has the Fed been able to repurpose or hide from the balance sheet because of credit card use. Ralph Epperson's book The Unseen Hand was an eye opener for me. Hopefully we as a Nation never have to return to the "barter system", but if we do how many bullets and seeds may i get for an iPhone 11 with selfie stick?

 

[peter-paul]

Anyhow, back to my original point...

U.S. Gets a Debt Warning From Fitch as Stimulus Battle Rages

Sent from my SAMSUNG-SM-G891A using Tapatalk

 

[IronSkillet]

Have heard some of the OP's original point from Ron Paul over the years, although agreeable about the nations debts/deficit not really sure of the significance it has at the individual level. We passed the point of no return decades ago with national over spending. Without the economy of the USA being active and consuming it would change the balance of the entire world economy. The central banks understand that if we as nation fail the entire world will follow us down the drain to. Sure there are other influences that surround this idea but K.I.S.S. Enjoy what you have and be responsible and maybe we can survive comfortably when things go bad.

 

[ladder13]

I'd take as many worthless pieces of paper like this one as I could get.

Me too.