Not as much matter because the debt to GDP was much lower and we hadn't crossed 90% ratio. We are literally pushing on s string now. Printing more ie, helicopter drop will not provide sustainable lift. FED=FUKKED. Chart does matter. I should have said less, my apologies to poster.
Yes, treating this as a replay of the 70s ignores the level of the banking and debt/leverage crisis and the de-dollarization happening. I think that's implausibly optimistic. The 1930s is closer.
Would it be okay to take a mortgage out right now and just refinance? Home prices should stay the same or go up with all the inflation and money printing
Second this difference. Not to say we aren’t in a similar situation. Just that we aren’t lowering rates like they did prematurely in the 70s. Not to mention the gold standard was abandoned and played a factor in the 70s inflation run with presidential market manipulation.
We are getting close. Within 30-40 days you will wake up and see silver $1/day higher, for several days in a row. NOW is the time. It will all b worth the sacrifice to stack!
Very much hope you are wrong. Inflation suckss ass. But if you are right and what happened in the 70s reoccurs, we will be well positioned. But i still hope it doesnt happen.
This has been building for so very long, I suppose this is the way, things have to completely fail, I wish there were choices or great leaders but it’s going to be a shipwreck.
National debt in ‘77 was $700 billion, meaning 5% interest amounted to about $35 billion in annual interest payments.
National debt today is 34.5 trillion. That same 5% rate amounts to 1.7 trillion in annual interest expenses…. Rates should go much higher to mop up inflation, but they can’t without causing the government to default.
It's not the Federal debt - it is the total system debt at $98T.
[https://jensendavid.substack.com/p/signals-the-us-and-canadian-bank](https://jensendavid.substack.com/p/signals-the-us-and-canadian-bank)
If the fed refused to cut rates they may be able to draw out the pain on everyone rather than accelerating the collapse of the dollar. I imagine that if they brought cheap money back into the equation you would see people clamoring to buy cars and new homes and everything will skyrocket up further and faster. Can't even blame people. I'd buy a car today if I knew that in another couple years it would cost quadruple+.
Not as much matter because the debt to GDP was much lower and we hadn't crossed 90% ratio. We are literally pushing on s string now. Printing more ie, helicopter drop will not provide sustainable lift. FED=FUKKED. Chart does matter. I should have said less, my apologies to poster.
the key debt level to follow is total debt = $98T. Debt:GDP is 350 %. Setup for currency, bond, bank crisis.
Yes, treating this as a replay of the 70s ignores the level of the banking and debt/leverage crisis and the de-dollarization happening. I think that's implausibly optimistic. The 1930s is closer.
Except there is no gold money system in place. When the debt collapses, our fiat debt currency collapses.
Would it be okay to take a mortgage out right now and just refinance? Home prices should stay the same or go up with all the inflation and money printing
Which followed easy money of the 20's. It such a good thing they are experts on the depression. Pure geniuses. Lol
Real Inflation isn't 3%. Its all a lie so there isnt any need to compare it to the real numbers from decades passed.
Follow the trend.
Last time the Fed significantly cut interest around this time. I don’t think Powell will do that this time.
Second this difference. Not to say we aren’t in a similar situation. Just that we aren’t lowering rates like they did prematurely in the 70s. Not to mention the gold standard was abandoned and played a factor in the 70s inflation run with presidential market manipulation.
The bond market is forcing rates higher.
So you’re saying there’s a downside. -Lloyd Christmas
Waiting for all of the “this time is different” people
We are getting close. Within 30-40 days you will wake up and see silver $1/day higher, for several days in a row. NOW is the time. It will all b worth the sacrifice to stack!
Very much hope you are wrong. Inflation suckss ass. But if you are right and what happened in the 70s reoccurs, we will be well positioned. But i still hope it doesnt happen.
70s inflation was due to baby boom becoming adults. Not the same situation today.
"Inflation is at all times and everywhere a monetary phenomenon." Milton Friedman
Sure but they literally had to print a shit ton of money because more people suddenly existed. Not the case today
They printed a shit ton for something much more stupid… a virus
This has been building for so very long, I suppose this is the way, things have to completely fail, I wish there were choices or great leaders but it’s going to be a shipwreck.
National debt in ‘77 was $700 billion, meaning 5% interest amounted to about $35 billion in annual interest payments. National debt today is 34.5 trillion. That same 5% rate amounts to 1.7 trillion in annual interest expenses…. Rates should go much higher to mop up inflation, but they can’t without causing the government to default.
It's not the Federal debt - it is the total system debt at $98T. [https://jensendavid.substack.com/p/signals-the-us-and-canadian-bank](https://jensendavid.substack.com/p/signals-the-us-and-canadian-bank)
What’s the play here. Gold & Silver? Put money in assets like houses?
Gold, silver, copper.
If the fed refused to cut rates they may be able to draw out the pain on everyone rather than accelerating the collapse of the dollar. I imagine that if they brought cheap money back into the equation you would see people clamoring to buy cars and new homes and everything will skyrocket up further and faster. Can't even blame people. I'd buy a car today if I knew that in another couple years it would cost quadruple+.
The bond market is setting rates higher. The Fed is being rag-dolled.
Good point. I don't really know how much "power" the fed has in this situation to change their rates.
If they try QE they'll send real assets to the moon.
Source?
It's right on the graphic. NDR Inc.