Federal interest rate and the next economic collapse in the USA

nice chart user, I like your thinking, but I do think its important to not mistake the upcoming crash with previous crashes though. The upcoming crash will be a lot worse than previous ones, worse than the great depression

Heres thread with substance. Good job Veeky Forums

True if the dollar dies. They may be able to keep it alive one more short cycle.

give some examples of passive income thats recession/depression/inflation proof

If this were crypto, I would be buying as much as possible because there's no way in hell that line is holding forever and we're coming down to about as far as it can possibly go without the entire thing imploding.

But it's fiat so fuck that shit, Mad Max Murica Edition when?

I doubt it, even without a crash the us is losing power to the east. There is a video out there somewhere of Peter Schiff saying the last financial crisis prevented the collapse of the dollar.

Harry Dent was right
youtube.com/watch?v=uOcaO4NoC7c

Farming. Let mother nature do the work for you, throw down some pesticides every couple of weeks, harvest 3x a year.

That's about it. Passive income only works in growth cycles.

>as far as it can possibly go without the entire thing imploding

In japan they went to negative interest rates where the government paid the banks to take money from them

>maximizing your purchasing power
The problem is that while a recession or even a depression in the near future seems almost like a guaranteed thing, we can't know where it's gonna hit. It may very well bring fiat down as well like Schiff suggests. It depends on what central banks do, if they keep printing money like crazy hyperinflation will happen, if they suck their money out of assets a more regular recession will likely happen. It's possible that both will happen, recession first, hyperinflation next. I'm holding mostly cash but I'm not too confident about it. It's just that everything else seems even worse right now, including gold (it kills your liquidity and will probably eventually dump if things really do get out of hand)

can't argue with that desu

This is why each successive crash is worse than the one before, as interest rates go lower levels of leverage go higher.

This correlation wouldn't happen in a free market, the greater the total debt in the economy the higher the interest rate due to the increased demand for loanable funds. This makes leverage a self-regulating cycle, contributing to a healthy business cycle.

I don't have the video readily available, but there was this hour long documentary I watched a couple weeks back about Japan's finance sector that laid out how that's possible.

Short story: Japan's economy does pretty well even at levels that would tank western nations because of several factors, including low foreign owned debt, minuscule immigration, large amounts of automation, and a high cultural work ethic.

If western nations tried the same practices, without fixing the underlying issues, we'd tank harder and faster than Japan in the 80's.

interesting. Now Im searching for the updated data, have we reached new highs or did the last collapse wipe off a
Decent chunk of the debt.

>or did the last collapse wipe off a
>Decent chunk of the debt.
HA.

I can see why you might think that, in the free market a recession is a deleveraging, how ever when you have completely manipulated markets and fiat currency governments find it a lot easier to do deficit spending, spend the economy out of recession, and build the debt higher on the foundations that have already been shown to broken.

Obama doubled the debt! and Trump is going to add the same amount as Obama. The interesting thing is though, with these artificially low interest rates, the service charge on all this debt ha been about the same as before the crash. The government can't cope with even a slight raise in interest rates, it will quite litterally bankrupt them.

Broken clock. Hes horribly wrong about the coming "financial crisis"

Your Id has Jew in it

hes had bad timing, but everything he has said will come true

you can see the change in gradient around 2008 where that other chart cut out

You better start believing crises, you're in one.

I love the flat notches towards the end. It's where we ran into debt ceilings, and instead of halting spending, we just stopped counting. Once Congress passed a new spending bill that amount was added to the debt.

Why do we have these laws again?

its all smoke and mirrors to make people think they have control, the US must go deeper into debt every year or the monetary system would collapse; watch this video to understand: youtu.be/iFDe5kUUyT0?t=13m55s

>There is more debt principal than currency
>Debt needs to be paid back both principal and interest
>In order to pay debt more debt must be issued as there is not enough currency to pay it
>repeat

OF course we have to go into more debt. How else would we pay off the interest?

LUL I love ponzis

currency is debt derived you retard
paying off debt destroys currency
maybe you should get your education from vimeo instead of youtube

that's quite literally what I, and the video, just said.

>one post by this id
ahhh never mind

Good thing the american senate refuses to remove gibs, burgers are going to fuck us all over again with their stupid economics.
>Muh consumption duuh!

What I got out of this video: the government needs to put neets to work, how did they do this in the hippie era? With a draft and a shitty war on some East Asian country. Situation look familiar?

Most of the EU is in worse shape.

Not even Sweden is as reliant on consumption as USA, you literally live off debt but yea Europe is fucked as well.
Many of the former Soviet countries still hasn't recovered from communism so they're going to be fucked unless they can revive their production.

cant wait to trade my silver for your wife and daughter :)

Western Europe has way more debt...

2023 is when the "crash" happens. I saw it in a dream.

kill yourself OP
sage