I’m sad to be saying this: Global economic response to #Covid19 pandemic will likely cause the #CrashOfMoney, #BigReset & #Jubilee.
—> Great for #Bitcoin.
Record government & corporate debt risks ‘tipping point’ after pandemic passes - The Washington Post https://t.co/wxDvXYUwPM
“I’m the king of debt. I’m great with debt. Nobody knows debt better than me,” Trump told Norah O’Donnell in an interview that aired on “CBS This Morning.” “I’ve made a fortune by using debt, and if things don’t work out I renegotiate the debt. I mean, that’s a smart thing, not a stupid thing.”
“How do you renegotiate the debt?” O’Donnell followed up.
“You go back and you say, hey guess what, the economy crashed,” Trump replied. “I’m going to give you back half.”
Clinton blasted Trump's economic views in a speech on Tuesday, accusing him of gambling with the full faith and credit of the United States by flirting with a default on the debt.
“That could cause an economic catastrophe, and it would break 225 years of ironclad trust that the American economy has with Americans and with the rest of the world,” Clinton said. “Alexander Hamilton would be rolling in his grave. You see, we pay our debts.”
It also mentions a certain Junk Bond King who got a presidential pardon this year:
> In addition to weakening laws against corporate mergers, Reagan also eroded white collar criminal enforcement, and deregulated the savings and loan industry. These changes allowed Milken, then an investment bank employee at a small firm called Drexel Burnham Lambert, to begin organizing a new means of financing for takeovers. In 1983, Milken began staking a different class of corporate raiders, men like T. Boone Pickens, Carl Icahn, Nelson Peltz, and Henry Kravitz, with giant pools of money he raised by selling ‘high-yield bonds,’ more commonly known as junk bonds.
Exactly. The Fed has total control of the dollar and no foreign entity, or even all foreign entities combined, hold enough US debt for it to actually be an issue. The Fed can prop up the US economy for as long as needed to overcome the pandemic.
The real problem is what happens after the pandemic. Does the Fed raise rates like it should? Does the US Government raise taxes like it should? Does the US Government, while raising taxes, cut spending like it should? Does the US Government mandate companies bring the necessary production back into the US for PPE and other medical supplies like it should?
We should learn from this pandemic. We need to make sure the government, Fed, and markets are prepared for things like this. Can we make everything we need to make during times of war or medical crisis in the US? Does the Fed have a full clip to deal with economic downturns? Do we have sufficient space in Federal spending to spend like drunk sailors during an economic crisis?
We have a great many policies and agencies in place that were put there specifically to avoid another Great Depression.
Also, it's generally recognized now that robust intervention by the federal government is necessary. Hoover wasn't quite the 'do-nothing' president he is commonly thought of, although his response to the depression wasn't as strong as necessary.
We know better now. There will be a recession, but nothing like the 1930s.
What I make is irrelevant.
What matters is that our tax system has allowed the creation of a wealth nobility class of over 600 billionaires.
America does not need billionaires.
America needs better roads, better schools, and better healthcare for all.
We should adjust our tax system so that it helps to pay for our needs, and helps to create less of what we don't need.
What you think is needed is irrelevant. Who are you? How is your opinion of what is “necessary” good for all? Come on man. You sound very authoritarian and it is very un-American. If you take away the incentive to earn and create you will push this economy into the Stone Age. Your idealism is not going to create the utopian society you so desire. Maybe we should address how states as well as the federal gov spend those funds. They are the most wasteful systems I’ve ever participated in.
>If you take away the incentive to earn and create you will push this economy into the Stone Age.
Oh, please, take your drama elsewhere. Making the top income tax bracket, which is over $500K a year, pay more in taxes will not take away the incentive to earn and create. That's less than 1% of the population.
On the other hand, improving education and increasing general health will improve the ability of many Americans to earn and create.
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The scariest part are the 100% of GDP debt levels in so many countries, coupled with low interest rates.
You can't invest, you can't decrease rates any more.
All thse countries allowing debt levels to creep up like that for whatever reason, be it tax cuts or extraneous spending in good times, have been massively irresponsible and sold out their future for contemporary gains.
It's not like most of them made great efforts to get their debt levels below the 60% prescribed in the Maastricht treaty.
And some of those that would try, would see massive protests and had to reverse course. No French president can reduce debts or far left and far right reactionary protesters block the country.
It's not peddling fear.
It's the chickens coming home to roost. Corrupt system meeting its demise. We're so blind to the scope of how we've been robbed... It's honestly going to be worth collapse for what comes after.
The banks can't pause mortgages. They're leveraged. The whole global system of leverage is going to unwind and its probably not a bad thing.
We've been due for a recession since 2016. We have gridlock controlled by the oligarchs while we are screaming towards 30% unemployment and no tax receipts for a safety net.
We were going full speed towards a cliff before coronavirus. It may actually be a godsend that we endure this now. Besides maybe preventing a descent into fascism and increasing risk of another global war.
Worst case is things continuing how they have been for another 30 years.
Destroying the economy, continuing to destroy the middle class, people continuing to struggle to survive, while the richest corrupt the system and take all the rewards for themselves.
We're past the point where our folly is consequence free, the worst case was already happening. We're just now realizing those consequences.
It will be after. Next president is pretty much screwed. Lot of companies are going to take on unsustainable debt levels and if economy doesn't come back to current levels they will never have the cash flow to service the debt. Say late 2021 before you start seeing a bunch of this happen. Companies will service debt payments with new debt for awhile but unless revenue and profits come back they will be pretty screwed in a couple of years.
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