Global Debt Level is Going to Affect Global Economy

[Stephen3141]

https://www.cnn.com/2024/07/02/economy/global-debt-crisis/index.html

The U.S. national debt is now equivalent to the total earnings of U.S.
businesses in one year. That's about 30 trillion dollars.

Although much of the recent debt increase has come from spending money
in order to pull the U.S. economy out of the Pandemic slump, America has been
spending money that it does not have, for decades.

We have got to start to live within our means, and pay down the national
debt. And, we probably will have to raise taxes on rich people, and corporations,
in order to pay down the national debt.

Higher mortgage rates on houses, are a direct result of the higher cost to borrow
money, because more and more of Americans income is used to pay interest
on the national debt.

America has got to change this irresponsible spending.

Besides getting into the habit of telling the truth, instead of lying, politicians
should take seriously the threat of the national debt.

As the biblical author says, those who live in debt, become slaves of those
who loaned them the money.

7 The rich rule over the poor,
and the borrower is the slave of the lender.
New American Bible, Revised Edition. (Washington, DC: The United States Conference of Catholic Bishops, 2011), Pr 22:7.

 

[AlexB23]

https://www.cnn.com/2024/07/02/economy/global-debt-crisis/index.html

The U.S. national debt is now equivalent to the total earnings of U.S.
businesses in one year. That's about 30 trillion dollars.

Although much of the recent debt increase has come from spending money
in order to pull the U.S. economy out of the Pandemic slump, America has been
spending money that it does not have, for decades.

We have got to start to live within our means, and pay down the national
debt. And, we probably will have to raise taxes on rich people, and corporations,
in order to pay down the national debt.

Higher mortgage rates on houses, are a direct result of the higher cost to borrow
money, because more and more of Americans income is used to pay interest
on the national debt.

America has got to change this irresponsible spending.

Besides getting into the habit of telling the truth, instead of lying, politicians
should take seriously the threat of the national debt.

As the biblical author says, those who live in debt, become slaves of those
who loaned them the money.

7 The rich rule over the poor,
and the borrower is the slave of the lender.
New American Bible, Revised Edition. (Washington, DC: The United States Conference of Catholic Bishops, 2011), Pr 22:7.

Dang, this is sad.

Folks need to be wise with money. Also, banks might want to follow Deut 15, which is below.

Deut 15:1-2: At the end of every seven years you must cancel debts. This is how it is to be done: Every creditor shall cancel the loan he has made to his fellow Israelite. He shall not require payment from his fellow Israelite or brother, because the LORD's time for canceling debts has been proclaimed.

 

[Laodicean60]

CNN is late to the party. The debt has been a problem since I first heard about it during Obama's administration.

Although much of the recent debt increase has come from spending money
in order to pull the U.S. economy out of the Pandemic slump, America has been
spending money that it does not have, for decades.

The current economic conditions with inflation is because of government stimulus checks. I won't fault the government for doing what was an emergency in their eyes. If I had solid proof that they knew the stimulus was going to create a supply chain shock and inflation then I would have to get my gun. It is said that "inflation is a hidden tax" and the government is inflating away the debt (reckless spending) at my kid's expense.

Higher mortgage rates on houses, are a direct result of the higher cost to borrow
money, because more and more of Americans income is used to pay interest
on the national debt.

Asset prices rise when the cost of money is cheap. We had corporations and investors buying up real estate because of the almost free money. Since the GFC the cost of money has been held down artificially by printing money. Modern monetary theory or Keynesian economics has been used improperly, FDR used it to pull us out of a depression but today printing money is commonplace. I can't blame the ignorance of our politicians but who I do blame is the 400 PhDs in the Federal Reserve. Does it makes any sense to spend a trillion dollars every 100 days?

7 The rich rule over the poor,
and the borrower is the slave of the lender.

"My people perish for the lack of knowledge" I used to think this was biblical knowledge only but today it's knowledge in general. We need to educate those old clowns or elect someone who can articulate some economic intelligence. No, low taxes aren't the answer, especially with the amount of debt both parties have accumulated.

 

[eleos1954]

https://www.cnn.com/2024/07/02/economy/global-debt-crisis/index.html

The U.S. national debt is now equivalent to the total earnings of U.S.
businesses in one year. That's about 30 trillion dollars.

Although much of the recent debt increase has come from spending money
in order to pull the U.S. economy out of the Pandemic slump, America has been
spending money that it does not have, for decades.

We have got to start to live within our means, and pay down the national
debt. And, we probably will have to raise taxes on rich people, and corporations,
in order to pay down the national debt.

Higher mortgage rates on houses, are a direct result of the higher cost to borrow
money, because more and more of Americans income is used to pay interest
on the national debt.

America has got to change this irresponsible spending.

Besides getting into the habit of telling the truth, instead of lying, politicians
should take seriously the threat of the national debt.

As the biblical author says, those who live in debt, become slaves of those
who loaned them the money.

7 The rich rule over the poor,
and the borrower is the slave of the lender.
New American Bible, Revised Edition. (Washington, DC: The United States Conference of Catholic Bishops, 2011), Pr 22:7.

Financial collapse is eminent .... it's just a matter of when it will occur.

 

[Ignatius the Kiwi]

The US and the Western world is addicted to spending what it cannot pay for. Keynsien economics dominates fianiancal policy and the only solution would be a crash of the economy which refutes it. Let's face it, elites don't care about inflation or spending or the state of their countries in the long term. They will only do what benefits them in the short term and why wouldn't you when the incentives exist in the system to do just that?

The only thing the individual can do is learn to be separate from the system as much as possible.

 

[AlexB23]

Financial collapse is eminent .... it's just a matter of when it will occur.

Probably some time this century?

 

[Neogaia777]

I think the entire economic/monetary system will go through a complete and total change, or be completely redesigned, right before a total economic collapse happens in order to supposedly save both it and us and us all, etc. And that it will be a fully unified, fully accepted/embraced change by all at that point, or by that point globally, etc. But that will entail/involve some kind of the taking of the mark of the beast that the Bible talks about globally, etc. Which will have risen along with the antichrist and false prophet at that time.

That's my current theory with it maybe anyway, etc.

Which we right now though, don't even know what that is going to look like, etc.

But I think it will come about at the crisis point, etc. Under the guise of saving us and/or sparing us all, etc.

God Bless.

 

[AlexB23]

I think the entire economic/monetary system will go through a complete and total change, or be completely redesigned, right before a total economic collapse happens in order to supposedly save both it and us and us all, etc. And that it will be a fully unified, fully accepted/embraced change by all at that point, or by that point globally, etc. But that will entail/involve some kind of the taking of the mark of the beast that the Bible talks about globally, etc. Which will have risen along with the antichrist and false prophet at that time.

That's my current theory with it maybe anyway, etc.

Which we right now though, don't even know what that is going to look like, etc.

But I think it will come about at the crisis point, etc. Under the guise of saving us and/or sparing us all, etc.

God Bless.

Could digital currency be a part of this future? I do not want to use crypto stuff at all.

 

[Neogaia777]

Could digital currency be a part of this future? I do not want to use crypto stuff at all.

I don't know for sure, but it's fairly likely, etc.

But beyond that, it can't just only entail a simple switch over to digital currency and still keep everything else the same, etc.

Because it will be touted/praised as the kind of new economic system that will never fail again after that, etc.

That's why I said that we don't even know what it's going to look like right now, etc.

But it will appear to completely solve/resolve all the past issues/problems of all the economic systems of the past always leading to eventual collapse or always eventually failing, etc.

But it will also involve worshipping/venerating some kind of "beast", etc, whatever that beast represents or might be, etc. And taking it's "mark" also, whatever that mark represents or might be, etc.

God Bless.

 

[AlexB23]

I don't know for sure, but it's fairly likely, etc.

But beyond that, it can't just only entail a simple switch over to digital currency and still keep everything else the same, etc.

Because it will be touted/praised as the kind of new economic system that will never fail again after that, etc.

That's why I said that we don't even know what it's going to look like right now, etc.

But it will appear to completely solve/resolve all the past issues/problems of all the economic systems of the past always leading to eventual collapse or always eventually failing, etc.

But it will also involve worshipping/venerating some kind of "beast", etc, whatever that beast represents or might be, etc. And taking it's "mark" also, whatever that mark represents or might be, etc.

God Bless.

Agreed. All we can do is pray that we can make it through these times.


Some guy on YouTube made an End Days series by mashing together movie clips

 

[Richard T]

Here is the way I describe the world's debt. It rests on a three legged stool. The Japanese yen, The U.S. Dollar, and the Euro. The reason the whole system has been able to withstand a crisis is that all the banks work on keeping it pretty stable. The three legs just get heavier and heavier until one day it breaks. Since Japan is the leg with the most debt to GDP, it appears it will break first. They also will not raise interest rates, in part because they can't afford the interest. Their currency is at or near record lows with most nations. Debt is being relieved some by inflation but you are right it cannot go on forever.
What makes it the most concerning is that the US debt levels as compared to the total economy are worse than after WWII. So when the next war comes I would expect some very serious inflation as nations have to borrow. Gold and all commodities are good especially if one can hold them physically and not via a contract. I do think the dollar will be one of the last currencies standing, other than perhaps the Swiss Franc. If you have not noticed there are several countries whose currency is being inflated at 50% plus a year. Here is a list for those over 10% at the bottom. World's Highest And Lowest Inflation Rates 2024 - Global Finance Magazine

Still, some people think the U.S. dollar is losing its luster. A BRICS Currency Could Shake the Dollar’s Dominance
They call that de-dollarization. I think it is premature, because instead dollarization is still occurring around the world. The main bric nations except for India are pretty much a mess.

Dollarization is where the foreign nation's currency is collapsing and dollars are being used either on the black market or in full cooperation. Ecuador for instance openly uses the US dollars.

The end times will see a complete financial collapse. Imagine the collapse if there is a rapture and in some nations 20 percent or more will be taken. All the extra cars and homes, all the bills left unpaid. So much disruption that the nations will look to the "world system" for an answer and they will float a new currency, digital or otherwise. There are plans out there now for this to happen.

Still, the USA would do better to put new debt behind us. Trump and Biden have no plan and a very poor track record. Biden is perhaps responsible for more USA debt than any person in US history, due to him being a part of the Senate so long and now President. If the shoe fits wear it and those who have been in office the longest are responsible. That is some "public service' to see the trillions of debt grow. Obama criticized Bush for debt, then proceeded to do worse. "
“I want to be very clear,” Obama said to open a “fiscal responsibility summit” at the White House. “We cannot and will not sustain deficits like these without end. Contrary to the prevailing wisdom in Washington these past few years, we cannot simply spend as we please and defer the consequences to the next budget, the next administration and the next generation.”

Obama Slams Bush Budget 'dishonesty'

By Craig Gordon,Josh Gerstein

www.cbsnews.com

VP Cheney said "Reagan proved debts do not matter." https://www.theatlantic.com/politic...ck-cheney-really-thinks-about-deficits/18426/

So pitiful it is almost funny. "The Rule of 72 is a shortcut or rule of thumb used to estimate the number of years required to double your money at a given annual rate of return." It can be used to for seeing how fast your currency will be worth half the current rate. So 3% average inflation would mean the dollar would half in 24 years. Since 1929 we have lost 95% of the dollars value. Value of 1929 dollars today | Inflation Calculator

$100 in 1929 is worth $1,836.66 today​

Zimbabwe	557.21	98.546	193.399	667.361	560.981
Argentina	42.015	48.409	72.431	133.489	249.793
Sudan	163.258	359.092	138.808	171.471	145.535
Venezuela	2,355.15	1,588.51	186.542	337.458	99.981
Türkiye	12.279	19.596	72.309	53.859	59.52
South Sudan	23.984	30.229	-3.21	40.195	54.754
Sierra Leone	13.447	11.874	27.209	47.716	39.118
Islamic Republic of Iran	36.43	40.214	45.752	41.5	37.5
Egypt	5.7	4.5	8.5	24.392	32.547
Malawi	8.639	9.343	20.839	30.295	27.892
Nigeria	13.247	16.953	18.847	24.66	26.311
Ethiopia	20.354	26.794	33.938	30.219	25.572
Pakistan	10.741	8.901	12.148	29.181	24.757
Haiti	22.945	15.941	27.576	44.1	23.013
Ghana	9.885	9.976	31.713	37.531	22.271
Angola	22.277	25.765	21.36	13.639	22.004
Burundi	7.305	8.313	18.888	26.955	21.964
Lao P.D.R.	5.104	3.754	22.959	31.23	21.5
Suriname	34.89	59.12	52.448	51.582	20.741
Democratic Republic of the Congo	11.358	8.989	9.266	19.894	17.247
Yemen	21.673	31.464	29.511	-1.225	16.909
The Gambia	5.931	7.37	11.513	16.966	15.123
Myanmar	5.725	3.642	18.385	27.1	15
São Tomé and Príncipe	9.82	8.138	18.006	21.184	14.191
Uzbekistan	12.868	10.849	11.447	9.951	11.579
Zambia	15.733	22.021	10.993	10.953	11.37
Guinea	10.602	12.597	10.499	7.8	11.034