11-08-2019, 08:35 AM
** 06-Nov-2019 World View: Deficit
I've posted this in the past, but I've become very philosophical
about the national debt.
I really have to laugh every day when I see some politician or analyst
or pundit say that "some day" we're going to have to start reducing
the national debt. It's a big joke. That's never going to happen.
Any politician that says it is completely full of crap.
And what difference does it make? If the national debt is $20
trillion or $30 trillion or $100 trillion, how much will it matter
when we're at war with China? Or, as Higgie says, when we enter a new
dark age. Or when the AI robots are our overlords?
It's going to be an unbelievable disaster no matter what the number is.
Eat, drink and be merry, for tomorrow we die.
![[Image: US-Gross-National-Debt-2011-2019-09-30-.png]](https://wolfstreet.com/wp-content/uploads/2019/10/US-Gross-National-Debt-2011-2019-09-30-.png)
vincecate Wrote:> What are other people's expectations as far as
> deflation/stability/inflation of reserve currencies? If you think
> deflation, is it for a limited time period and then eventually
> inflation?
> I think the US deficit is really well over $1 trillion per year
> and that the Fed will end up printing/buying more than $1 trillion
> per year. I think people will start to realize it won't
> "normalize its balance sheet" or even slow the printing. At some
> point people will start to flee the bond bubble (the Fed has
> driving pries to crazy levels) and the Fed will be about the only
> buyer. Similar thing in at least the Yen and Euro. I think the
> riots around the world are a hint that inflation is starting.
> Once inflation starts people will flee bonds. Central banks can't
> let interest rates go up or their governments will be bankrupt
> (and stock markets will crash), so they will keep printing and
> buying bonds. Is there any other way this can go really?
> Ray Dalio, "The World Has Gone Mad and the System Is Broken"
> https://www.linkedin.com/pulse/world-has...-ray-dalio
> Some big change is coming, what is going on now with crazy levels
> of money printing is not sustainable. I may end in war, but my
> guess in high inflation, though these are not in any way mutually
> exclusive. :-)
I've posted this in the past, but I've become very philosophical
about the national debt.
I really have to laugh every day when I see some politician or analyst
or pundit say that "some day" we're going to have to start reducing
the national debt. It's a big joke. That's never going to happen.
Any politician that says it is completely full of crap.
And what difference does it make? If the national debt is $20
trillion or $30 trillion or $100 trillion, how much will it matter
when we're at war with China? Or, as Higgie says, when we enter a new
dark age. Or when the AI robots are our overlords?
It's going to be an unbelievable disaster no matter what the number is.
Eat, drink and be merry, for tomorrow we die.
- US Gross National Debt jumps $1.2 trillion in fiscal 2019, to
$22.7 trillion
