Europe on the brink.

#76
#76
Orangeburst said:
Man..Europe looks to be heading towards a disaster. All the entire Western world..and the CCP looks to be crashing.
Only thing that typically occurs out of all these is war.
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Right now the world is starving for a lack of dollars, the Fed has barely even started the tightening process. Most likely none of this going to end well for anyone.

At this point I would expect in a quarter or two, possibly less... the Fed reverses course to try and stop the global collapse. Of course, kicking the can down the road seems fairly short at this point as we would be zero bound again.

The current global credit system looks close to completion of the inevitable.

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Kicking the can seems rather moot at some point if there is no more road to kick it down.

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The Fed will be blames but how can they fix an equation? Its pure Math. They will be the sacrificial lambs.
 
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#78
#78
IluvdoubleD's said:
This is what happens when you make money free to borrow, and then steal it all.
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This is what happens when you attach interest to your medium of exchange. Math.

And for all the USSR haters in the world, sure seems like everyone wants to be 1980s USSR. (I'm sure it will work this time lol)

The UN Demands All Central Banks Stop Rate Hikes And Switch To Price Controls Instead

You will own nothing and like it.
You will rent some stuff and like it.
You will have nothing, go hungry and like it.

The deal is going to get worse and worse.
 
#79
#79
IluvdoubleD's said:
That's when frumpy pantsism spread to Europe and johnson was installed by the Torres. Now Truss is doubling down on the same policies, and England is not very happy.
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Hilarious. Trump is so powerful that now he’s corrupting the economies of other countries. I thought no one could approach BB’s level of dumbassery when it came to all things Trump. I was wrong.
 
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#80
#80
A direct result of 0% free borrowing. You were charging 180 g's for property worth 110. There will be a correction: Please don't do this again young people. It takes decades to recover. The only that profited from it was the cult.
 
#81
#81
IluvdoubleD's said:
A direct result of 0% free borrowing. You were charging 180 g's for property worth 110. There will be a correction: Please don't do this again young people. It takes decades to recover. The only that profited from it was the cult.
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If more and more people don't "do this" than the system will have to collapse. The system only works one way, more and more new credit needs to come online to pay for the previous credit.

How is a credit system with interest going to work without new credit to support the interest needed to support itself?
 
#82
#82
people won't pay 180 g for a property worth 110. and the wealthy don't have as much yo steal. It holds the value of everything. if you burn everything to hell you have nothing left!
 
#83
#83
IluvdoubleD's said:
people won't pay 180 g for a property worth 110. and the wealthy don't have as much yo steal. It holds the value of everything. if you burn everything to hell you have nothing left!
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The system won't have anything left if the system collapses, the system requires more and more new credit everyday. That little blimp in 2007-2009 about collapsed the system.

Credit/debt must expand or eventually down the rabbit hole you go. More credit/debt or else.

fredgraph.png


Corporations, federal government and individuals can no longer roll over debt and expand debt at a cheaper cost, the system is at or near zero bound.
 
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#84
#84
IluvdoubleD's said:
A direct result of 0% free borrowing. You were charging 180 g's for property worth 110. There will be a correction: Please don't do this again young people. It takes decades to recover. The only that profited from it was the cult.
Click to expand...


Outstanding! Been waiting on this.
 
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#85
#85
IluvdoubleD's said:
This is about credit lending. Debt. Cheap debt. Years of near 0% interest free money. The Trumpers economy. Trickle down. Only it never trickles down. It gets laundered away and held in offshore tax fee accounts out of the market.
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So trump destroyed europe because of what the federal reserve did, but you think america is set up nicely to rebound?

Someone make it make sense
 
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#88
#88
IluvdoubleD's said:
"The outstanding public debt was $10.6 trillion when former President Barack Obama took office on January 20, 2009; $19.9 trillion when former President Donald Trump took office on January 20, 2017; and $27.8 trillion when Biden took office on January 20, 2021, Treasury Department data shows."

https://www.cnn.com/2022/10/04/economy/us-national-debt-31-trillion/index.html
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The Committee for a Responsible Fiscal Budget last month estimated that President Joe Biden’s policies could add $4.8 trillion to deficits between 2021 and 2031.

fact is..the Trump COVID Relief packages were a one time payment..
Trump was running $1T yearly deficits..inexcusable.

Biden is setting up policy to be reoccurring added debt for years..on top of Year to Year Debt...and only 2 years in and a Mountain of Economic Woes and inflation.

So how about we move forward..surely Joe is getting things straightened out
 
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#91
#91
IluvdoubleD's said:
This is about credit lending. Debt. Cheap debt. Years of near 0% interest free money. The Trumpers economy. Trickle down. Only it never trickles down. It gets laundered away and held in offshore tax fee accounts out of the market.
Click to expand...

I truly don’t understand how someone can make this comment. You have the information at the tips of your fingersE006519A-BE14-4AF3-B8C1-3B4493071A5E.png
 
#92
#92
The fed was irresponsible and bent the knee to the party in power. Rates should have moved as soon as the stimulus was signed into effect.

25 bps starting 1.21, 3.21, 5.21(transitory crap - 4%. 50 bps starting 7.21 and mivibg twice more to 5.50 by the end of 21. The BOE moved their rate in November or December 21 by 15 or 35 bps, while the fed sat on their ass.

(At my previous job) We were having internal conversations starting in July 21 about rates needing to increase. We were trying to project out 100 & 200 bps increases in Q321. Can honestly say, no one I had conversations with thought it would climb this high. Comes back to the fed being irresponsible and not doing their job properly. Lsu-siu was correct, the fed is going to be the sacrificial lamb here and take a beating. No one who is on the advisory board should be there after the last 24 months. Pure incompetence.
 
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#93
#93
IluvdoubleD's said:
This is about credit lending. Debt. Cheap debt. Years of near 0% interest free money. The Trumpers economy. Trickle down. Only it never trickles down. It gets laundered away and held in offshore tax fee accounts out of the market.
Click to expand...

You can't lay this at the feet of Trump*, even if he did push the Fed to lower interest rates. This has been the move for decades. Need the economy to look stronger than it is? Just lower interest rates and watch the economy act busy and healthier than it really is.

Prices play one of the most important functions in an economy. They coordinate buying/selling in a complex economy. Most people understand this and do not want the government fixing prices.

Interest rates are very similar in that they coordinate savings/borrowing (essentially buying/selling over time). If the economy is calling for us to save (naturally high interest rates) it means the opportunities right now are relatively worse than they will be in the future (which you should save for). If interest rates are naturally low, then it means there are good opportunities for borrowing and putting that borrowed money to work now. Basically, nobody understands this and everybody is OK with fixing interest rates, but it's a manipulation that might be every bit as dangerous as price fixing. Every time the economy takes a little dip, we try to counteract it with interest rates instead of just weathering the storm, and it seems like it makes big storms more frequent, but at least the little storms are short, right?

*but you can rub it in his fanboys' noses, who still try to pretend like he was good for the economy.
 
#94
#94
This article is making the rounds. This is complete and total GARBAGE. From beginning to end. This is why you are in trouble. I cannot believe this man printed this in black and white.

"If there was really such a thing as a fiscal black hole, it might be a good idea to fill it, but the idea that Britain is about to sucked into a vortex because it is running a budget deficit is a fairytale. A country that has its own currency, as the UK does, can print money to cover its spending. While it is never admitted, the Bank of England’s quantitative easing – large-scale buying of bonds – effectively funded government deficits during both the global financial crisis and the pandemic. There is no black hole because there is no way the government can ever run out of money"

pssssst! The more you print, the less it's worth. It loses value, and you wind up paying MORE, because it takes MORE. This is basic math. You are in this situation because (mostly banks, but business and people alike) BORROWED INCREADABLE AMOUNTS OF DEBT WITH A VERY LOW INTEREST RATE. DUH. Pay off your debt. dummies.

The UK economy is about to be thrown into a black hole – by its own government | Larry Elliott
 
#95
#95
IluvdoubleD's said:
This article is making the rounds. This is complete and total GARBAGE. From beginning to end. This is why you are in trouble. I cannot believe this man printed this in black and white.

"If there was really such a thing as a fiscal black hole, it might be a good idea to fill it, but the idea that Britain is about to sucked into a vortex because it is running a budget deficit is a fairytale. A country that has its own currency, as the UK does, can print money to cover its spending. While it is never admitted, the Bank of England’s quantitative easing – large-scale buying of bonds – effectively funded government deficits during both the global financial crisis and the pandemic. There is no black hole because there is no way the government can ever run out of money"

pssssst! The more you print, the less it's worth. It loses value, and you wind up paying MORE, because it takes MORE. This is basic math. You are in this situation because (mostly banks, but business and people alike) BORROWED INCREADABLE AMOUNTS OF DEBT WITH A VERY LOW INTEREST RATE. DUH. Pay off your debt. dummies.

The UK economy is about to be thrown into a black hole – by its own government | Larry Elliott
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We should worry about our own clusterf*** of a govt here in the US. Already borrowing money to pay the interest on the debt (super smart), now we’re just going to borrow it at much higher interest rates. How do you think that’s going to go for us? And all the people believing the govt can/should help them are going to be left wondering wtf happened?? Good luck getting them to wrap their simple minds around “how” it happened.
 
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#96
#96
IluvdoubleD's said:
This article is making the rounds. This is complete and total GARBAGE. From beginning to end. This is why you are in trouble. I cannot believe this man printed this in black and white.

"If there was really such a thing as a fiscal black hole, it might be a good idea to fill it, but the idea that Britain is about to sucked into a vortex because it is running a budget deficit is a fairytale. A country that has its own currency, as the UK does, can print money to cover its spending. While it is never admitted, the Bank of England’s quantitative easing – large-scale buying of bonds – effectively funded government deficits during both the global financial crisis and the pandemic. There is no black hole because there is no way the government can ever run out of money"

pssssst! The more you print, the less it's worth. It loses value, and you wind up paying MORE, because it takes MORE. This is basic math. You are in this situation because (mostly banks, but business and people alike) BORROWED INCREADABLE AMOUNTS OF DEBT WITH A VERY LOW INTEREST RATE. DUH. Pay off your debt. dummies.

The UK economy is about to be thrown into a black hole – by its own government | Larry Elliott
Click to expand...

Our rapid inflation here is a direct result of printing trillions over the last few years.
 
#97
#97
It's because trump dropped the interest rate to damn near zero (record lows) for years. Bad guys, and irresponsibles
, and people who plaine don't know what they are doing... took advantage. It looks great at first, but eventually you gotta pay that back.

We can reverse it btw. I think the fed has one more in them at most. Hopefully people stop spending so much, and pay your debt down. YEAH, it's tough to do, It takes a minute. We can bring it back down just as easy tho.
 
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#98
#98
IluvdoubleD's said:
It's because trump dropped the interest rate to damn near zero (record lows) for years. Bad guys, and irresponsibles
, and people who plaine don't know what they are doing... took advantage. It looks great at first, but eventually you gotta pay that back.

We can reverse it btw. I think the fed has one more in them at most. Hopefully people stop spending so much, and pay your debt down. YEAH, it's tough to do, It takes a minute. We can bring it back down just as easy tho.
Click to expand...

I didn't realize POTUS set the Fed interest rate? But in any case you are FOS again. The federal interest rate started hovering just above zero in 2009 and stayed there until 2017.

United States Fed Funds Rate - 2022 Data - 1971-2021 Historical - 2023 Forecast
 
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#99
#99
IluvdoubleD's said:
It's because trump dropped the interest rate to damn near zero (record lows) for years. Bad guys, and irresponsibles
, and people who plaine don't know what they are doing... took advantage. It looks great at first, but eventually you gotta pay that back.

We can reverse it btw. I think the fed has one more in them at most. Hopefully people stop spending so much, and pay your debt down. YEAH, it's tough to do, It takes a minute. We can bring it back down just as easy tho.
Click to expand...

Trump is NOT the Fed. Presidents don't set interest rates. These rates were brought to near ZERO largely in response to the financial crisis and the FED's decision to pursue QE....long before Trump was President. Surely, you knew that.
 
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#100
#100
get out of here....trump replaced the gov with HIS OWN people, even the CDC. It's his admins policies. Just like it's Bidens now. He is trying to correct the situation before it gets out of hand tho. Like I said, I think the fed might have one more in them before they have to reverse .
 
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