>Entire global economy is being kept afloat by massive asset bubbles that are being inflated from extremely low interest rates and speculation
We've reached a point where we can't raise interest rates above 4% without causing a massive shitstorm
How much longer can we continue this charade?
Other urls found in this thread:
Burn it all
we should just crank the interest rates up hard and fast and get it over with
what's the alternative?
I have almost all of my net worth in crypto. Am I safe?
Will the usury ever stop?
Reduction in government spending, and increased taxation. If the US debt can be reduced, money won't have to be continually created to devalue the debt. This will also lead to the ability to raise interest rates higher, because the Government paying interest on debt will become less and less of a concern. That's the only way to do it.
If crypto does eventually become the new monetary system (whichever coin that may eventually be), humans won't learn. We'll still create more currency to stimulate growth. But if devaluing government will be a lot harder, if all nations use the same crypto currency. This will force governments to be more frugal, and to encourage more innovation so that they can reduce spending on subsidies.
>But if devaluing government will be a lot harder
*But devaluing government debt will be a lot harder
Guessing you are in burgerland too.
So, this is "ok" but concerning. Basically everyone is fearing deflation so making more paper money makes sense. It basically has been Japan for the past 20 years. The US and EU are basically Japan 2.0 and there is nothing that will stop it
>market drops 10%
>fed steps in to cut rates so that job losses wont mount
>back to ZIRP
>omg deflation, we have to use (((quantitative easing)))
The situation isn't better anywhere else, the BRICs are all fucked now too
Brazil = corrupt shithole, ticking time bomb, cannot be trusted
Russia = corrupt, definitely the better of the 4
India = no idea
China = Massive debt is now looming, they wanted to Americanize their economy, and so doing so got their debt out of control
Buy crypto, buy guns, when the shit hits the fan this bubble will result in bloodshed and hyperinflation.
>increased taxation
kys.
Well, I guess the debt can keep growing. The US currency can keep being devalued to the point of meaninglessness.
I unironically have no problem with this. Just don't expect shit to change with crypto.
The goldbugs will have the last laugh, they always do.
Reduction in govt spending definitely won't happen since the Boomers will need their social security and pensions soon. Also more Americans are relying on govt handouts like food stamps since the cost of living has skyrocketed.
Considering we went over 11 trillion in debt in the past eight years without cutting corners it's likely theyll keep running shit on the credit card until it blows up
If the global monetary system goes to shit, crypto will go fucking bananas.
>Reduction in government spending, and increased taxation.
so austerity. say hi to our new best friends!
I'd rather see the current system completely collapse than try to fix it. No commie.
Nope.
Even crypto had to go straight to usury.
It's all fucked.
The only way out is through the collapse of the dollar.
simple being america with a superior military, we will just invade some countries and tell them to pay our debt.
The next possible alternative being, hyper inflation, followed by a global economic downturn. Leading to asian cash rich countries buying us companies for pennies on the dollar. Meaning youll have to learn mandarin and hope your Chinese boss isnt a dick
>if all nations use the same crypto currency
Hello illuminati.
That's the inevitable end result. Things don't ever get fully fixed or reversed, just trivially patched as things progress towards complete failure.
give me one reason why we shouldn't just execute people on their 70th birthdays
>tfw we're all gonna be millionaires but bread will be $1500 a loaf
Who cares money can just be printed and repaid
crypto will tank just as hard
So buy ANT, become a millionaire by next month, and then store it in the currency of your choice. Easy. Seriously, go check it out.
then you just trade for BreadCoins and buy bread duh
now, it people will try to shift out of the system. Look at what happened to venezuela.
>venezuela
yea sure some people in an irrelevant country can do it but we're talking about the world economy. if it tanks, thats it
we don't it collapses and crypto goes crazZzZeEeEeE and forms the basis for a new trustless economy, because trusting people clearly doesnt work
If the entire world has no value then everything does
no, humans will learn, crypto is 100% transparent and will become the norm. There wont be anymore ability to print money. Government spends to much = government collapsing and we form a new government, economics wont be some voodoo instrument anymore it will be completely transparent and organic
fuck off samefag nigger
everyone always complains that the US debt is xx trillion. ok, just checked, we're real close to 20 trillion. so what? what are the assets of the US? pretty fucking close to infinite. we're the only super power. even if you want to be peaceful and pretend like we couldn't just take over the world, why couldn't we just sell off some assets (i dunno, oil fields, useless land in alaska, etc.) and pay off the debt instantly?
One thing to keep in mind is that the US gov is so damn huge that it cannot effectively borrow from anyone but itself.
When your budget is in the trillions where do you get that kind of money ? who else can lend you hundreds of billions of dollars ?
>pay off the debt instantly?
If the debt was paid of instantly , many people and programs would have to find other investments for their money.
US debt has long been the bedrock for low risk investments, if that goes away people will either hoard their cash or be forced to put their money into things that are more risky , and potentially lose their money.
Like what if Social Security had to rely on bonds from the EU and Africa ?? You see how that could be a problem.
Also remember the US pays its debt in US dollars, meaning it can just print its way out of any kind of shortfall if it wanted to.
I'm not saying the US is to print 20T of money in a single year, but if it faces some sort of shortfall of 100B, there would be very little impact if it just printed that money and put it in its bank account.
The US debt is very different from the kind of household debt you and I can have, and simply saying to pay it all off, or to sell things don't really apply to it like for the debt we might have.
implying crypto wont go straight to hell as everyone sell like mad
what would they be selling into, a falling dollar?
Dude stop shilling this. I hold ANT but you're making it look like a pnd
>India = no idea
It's easily better than Russia. Modi is right wing, small-govt, pro-business, and is redpilled on muslims. RBI's interest rate is around 6% Strong emerging market, but govt is corrupt tho
This guy gets it.
Can an econfag truthpill me on what precisely would happen if, hypothetically speaking, all the debts were fully paid off and the global economy "restarts" from that point.
>taxing me even more
Fuck that I'd rather have it crash
Yes, but when a shitstorm hits and all hell brakes loose Russia will still have giant piles of gold, natural resources, food. Even though it is somewhat corrupt and old fashioned it gets better by the day(practically being first and only country that is heavily pro-crypto). But i am a Phd student in Russia, so i am very biased.
>taking 11 trillion out of the economy
That seems like a great idea, if you want another depression.
>my paper's starting to lose value
>I know! I'll sell my gold for it!
I know people are retarded but I don't think enough people are THAT braindead.
If a magic wand waved all the debt away without any repercussions not much would change. Hopefully we'd start actually having budget surpluses so we don't build up that much of a debt problem in the future, but the debt being there or not, independent of everything else, doesn't hold much bearing. The US economy would still be vital due to how much it imports/exports.
Now, the question is HOW will that debt go away? Because what thing we do to get rid of that will have huge effects on the global economy. Printing 20 trillion would drive inflation insane and reduce confidence in the US$, fucking over the world economy. Taxing people for $20 trillion to pay it off would tank the economy hard (if you take money out of everyone's pockets, people aren't going to spend as much).