With US debt over $40 trillion, are we headed for another 2008 crash?

[i_am_back]

[OneViewpoint]

Wow, the lack of understanding of finance and economics is appalling.

No, increased Federal debt levels are in no way similar to private sector banks violating their own lending standards to create toxic loans with incredible risk then selling them off to hedge funds who package them up into synthetic derivatives so complex even they don't understand the risk in their own product and finally selling them off to investors who are unable or too lazy to analyze said synthetic derivatives. And by the way the banks enjoyed the help of real estate appraisers who colluded to inflate the market value of the real estate being appraised in order to paper the bad loans. It was top to bottom fraud in an entire industry... buyers, appraisers, banks, and hedge funds... and the dummies who ended up owning the synthetic derivatives. End result? Assets got wiped out. Because the valuations were bullshit to begin with.

What we get from printing more money is devaluation of the dollar and potentially inflation. You can thank Republicans, MAGA, and Cheeto Jesus for the largest fastest increase in Federal debt in US history. Federal debt has increased by $11.6 Trillion in tRump's 6 years in office.

Biden was no Rock Star either. He added $8.4 Trillion to the Federal debt in 4 years. However most of that was related to dealing with a once in a century global pandemic, Covid-19. Without Covid, Biden's numbers wouldn't be nearly as large.

When the Orange Idiot took office in 2016, Federal debt was about $20 Trillion. Cheeto Jesus grew that by 58%. Biden added 42%. Today we stand at $40 Trillion. We have doubled the national debt in a mere 10 years of dysfunctional assault on government. Congratulations MAGA, you got what you wanted. You have destroyed your own country.

[Anonymous]

No one can say for certain a lot of it depends on what the fed does. Will they fire up the printing press? If so, get ready for higher inflation. I read the other day an article that said Warsh's plan is essentially to redifine the parameters of how inflation is determined. So they won't lower inflation so much as they'll just lower it by determining it differently 😆 When you think about it, this is what the S&P already does. When a stock underperforms long enough they just remove it from the S&P 500 and replace it with a stock that is. It give the Impression the market is doing better. And sometimes that feelgood energy makes things move in a positive direction.😆

And they say there's about a 70% chances they raise interest rates.

Look on the brightside. You're only 26 you have time to weather a market crash. I was planning on retiring in the next 10 years. I worry less about market dip then i do about a crash and a long recovery.

[i_am_back]

I want market crash so i can offline my gold position and buy stocks at cheaper price

[lightbulb27]

yes but it may be slow and drawn out like japan if they manage it that way.

the problem would be long term rates bringing the whole thing down. there's a good reason the higher ups are lining their pockets with billions using stupid peopes $

[Chazmatazz269]

Our debt has never decreased. A crash has nothing to do with that.
If you look closely at historic crashes and the depression, those things are only declared when the fat cats start losing money too. Otherwise it’s just a “downturn”, “recession” or “inflation” when only the working class and primarily the working poor are affected.
Right now, the capitalists are still making money hand over fist and there’s no reason to expect that will change in the foreseeable future.

[strateguy632]

Those are not connected. The crash related to mortgages. In theory debt could be 60 trillion but that is reckless so trump is not like democrats.

[exitseven]

Hopefully the US econpmy will grow itself out of deficit spending.

[Chazmatazz269]

Hope is no substitute for a plan, and half the country is still fighting the plan.

[msc545]

But you know, nothing to worry about. Trump says it's all good.

[loveslongnails]

No, more like a 1920's style depression.

[FrodoSkywalker007]

Got your account deleted?

[canamlusciouslad73]

Looks that way.

[jahaims]

We are way worse off than in 2008

[Anonymous]

Why does US have so much debt?

[i_am_back]

Because US is a ponzee scheme
US spend more then tax revenue

So they borrow money for spending...

[Opinion Owner]

Why is US spending more?

[Effably]

The US have the advantage of the Dollar being the world's reserve currency after the second world war. Other countries use Dollar instead of Gold to backup their economies if something were to happen.

This means that when the US takes on debt the rest of the world has simply bought the treasury bonds, the debt, up. Enabling the US to take on debt like crazy with little consequence since the rest of the world pays for it. Naturally US has used this advantage of the rest of the world financing it to enjoy a stronger financial position than it could have ever held otherwise.

The problem now is that due to Donald Trump's politics the rest of the world has more and more steered away from the dollar. It has become unreliable. If the dollar ever lost its status as the reserve currency the US would face an unprecedented financial crash.

The good thing is that even though the world is now slowly moving away from the dollar it won't happen suddenly and so it will more be a continous reduction in living quality year after year. But the US is in deep trouble if it continues or speeds up. Which is why foreign politics has been so important and why being considered a good reliable country matters more for the US than other countries.

[i_am_back]

@anonymous
Most of the countries are fooling US and taking money on the name of war...
Ukraine took billions of dollars now iran Isreal war...

Now US exposed to the world
Running out of weapons for war only 30-40% inventory left.

And the cost of production for US weapons in billions of dollars...

Tiny countries like Ukraine n iran fooling this jokers 😂

[Opinion Owner]

@i_am_back that's great bro 😂

[i_am_back]

Yo bro 😂

[Anonymous]

Worse

[i_am_back]

I do agree with you maam