Us, the financial addicts.

[swissie]

Ever since WW2, we had a nice run. Thanks to productivity gains, but mainly financed by increasing the amount of outstanding dept (government and private).

For example: Currently, 8% of all the Tax Revenue collected in the US must be used just to pay the interest of the outstanding debt. No reversal of this trend visible.

But in order to keep the party going "we" must inject ever more "credit" into the system. If we stop doing this, the 70 year old party will come to an end.

The world has fallen prey to the worst addiction of them all: "Credit".

Possibly a good time to increase the recommended 10% of Gold/Silver in an average portfolio to more.................... or much more.

[Purdey]

Yes, credit is a drug from which  consumers and governments cannot go cold turkey.

[Jenkins9039]

Called Financial Repression... Did it post war also.... Debase and print the difference around 65m financial refinance cycles.

[1FinickyOne]

or much much much more... or not... 

 

many investments have out performed gold through the years... 

[Peterphuket]

17 hours ago, swissie said:

Ever since WW2, we had a nice run. Thanks to productivity gains, but mainly financed by increasing the amount of outstanding dept (government and private).

For example: Currently, 8% of all the Tax Revenue collected in the US must be used just to pay the interest of the outstanding debt. No reversal of this trend visible.

But in order to keep the party going "we" must inject ever more "credit" into the system. If we stop doing this, the 70 year old party will come to an end.

The world has fallen prey to the worst addiction of them all: "Credit".

Possibly a good time to increase the recommended 10% of Gold/Silver in an average portfolio to more.................... or much more.

Totally agree, but then you have to have those credits/assets.

[Peterphuket]

3 hours ago, 1FinickyOne said:

or much much much more... or not... 

 

many investments have out performed gold through the years... 

Without words....

[HappyExpat57]

The BEST thing that came from my divorce was a bankruptcy. I couldn't even get a gas credit card for five years. This taught me to live within my means, which then taught me to save/invest, and the rest is history. Enough money that I will never again have to worry about it, an exceptional credit rating, and a life I never would have thought in a million years I'd be living.

 

It breaks my heart to see the people here, one of the wealthiest nations on the planet, drowning in household debt. Poverty is a man made construct and it is sickening to see.

[john donson]

let's forget all the crashes...  right...

 

I cannot wait one day to see the bitcoin pyramid, backed by nothing at all

 

yeah USD also backed by hot air

 

but apple, google stocks, etc.. = sales, servers, services...

 

bitcoin being worth the whole USA 34 trillion dollar debt ?

 

 

[QuantumQuandry]

Oh, this doom and gloom scenario again...how original.

[gamb00ler]

Don't worry, be happy

 

https://www.nytimes.com/2024/06/06/opinion/national-debt-us-taxes.html?unlocked_article_code=1.x00.IHjG.opEps-X4Gkpn&smid=url-share

 

[jas007]

On 6/6/2024 at 5:18 PM, HappyExpat57 said:

The BEST thing that came from my divorce was a bankruptcy. I couldn't even get a gas credit card for five years. This taught me to live within my means, which then taught me to save/invest, and the rest is history. Enough money that I will never again have to worry about it, an exceptional credit rating, and a life I never would have thought in a million years I'd be living.

 

It breaks my heart to see the people here, one of the wealthiest nations on the planet, drowning in household debt. Poverty is a man made construct and it is sickening to see.

No one needs to be drowning in debt.  As you seem to have learned, there’s always bankruptcy.  
 

Right now in the U.S., there’s a serious disconnect between asset prices and household income.  And sooner of later, there will be an adjustment.  Unfortunately, that adjustment may come with some pain for a lot of people.  The government has no good choice but to continue to inflate.  They’ve been doing that for years and that scenario will continue. Eventually, employers will have to start paying workers more money.

 

Look at history.  The minimum wage used to be $1.25.  A new family car was around $3,000.  Houses were purchased for $15,000.  Fast forward 60 years and we have today’s mess.  Eventually, you’ll be paying $99 for a Big Mac, workers wages will have risen dramatically, and life will go on.  Hopefully.  
 

I feel sorry for the holders of US government debt.

[HappyExpat57]

1 hour ago, jas007 said:

No one needs to be drowning in debt.  As you seem to have learned, there’s always bankruptcy.  
 

Right now in the U.S., there’s a serious disconnect between asset prices and household income.  And sooner of later, there will be an adjustment.  Unfortunately, that adjustment may come with some pain for a lot of people.  The government has no good choice but to continue to inflate.  They’ve been doing that for years and that scenario will continue. Eventually, employers will have to start paying workers more money.

 

Look at history.  The minimum wage used to be $1.25.  A new family car was around $3,000.  Houses were purchased for $15,000.  Fast forward 60 years and we have today’s mess.  Eventually, you’ll be paying $99 for a Big Mac, workers wages will have risen dramatically, and life will go on.  Hopefully.  
 

I feel sorry for the holders of US government debt.

There is no bankruptcy court in Thailand. If you borrow from a loan shark just to try and stay afloat and can't pay back the loan, the sharks have been killing some of the folks to make an example to the others.

[jas007]

Just now, HappyExpat57 said:

There is no bankruptcy court in Thailand. If you borrow from a loan shark just to try and stay afloat and can't pay back the loan, the sharks have been killing some of the folks to make an example to the others.

I thought he was talking about the USA.

[HappyExpat57]

23 minutes ago, jas007 said:

I thought he was talking about the USA.

You're right. I switched mid-stream and thought everyone could read my mind. Oops.