Debt-based American Economy: $15 trillion household debt, $14 trillion corporate debt, $27 trillion federal debt (Baby Boomers, statistics)

[lovecrowds]

The federal reserve is just getting started. This country hasn't seen anything yet when it comes to the federal reserve.

Coporate debt went from 6 trillion in 2000 to 14 trillion dollars now
Federal government debt went from 5 trillion in 2000 to 27 trillion now.
State and Local debt went from 1 trillion in 2000 to 3 trillion now.

A massive amount of "baby boomers" will be going onto Social Security and Medicare
Increases in immigration from countries with traditions of extremely high birth rates.

https://www.treasurydirect.gov/govt/...tothepenny.htm

https://www.federalreserve.gov/relea...0180920/z1.pdf

https://www.cnbc.com/2020/04/28/the-...-key-test.html

[Boss]

It will be interesting to see the cost of a loaf of bread in a couple of years. May need 2 or 3 credit cards to pay for food.

[Igor Blevin]

This should be in Finance, not Politics.

In other words, if you have the money, "Buy Gold Now. ".

Lots of Gold. Physical, not ETFs.

Yep, this doesn't end well. The only long-term outcome is outright financial collapse. It is NOT different this time. As to when the financial collapse will come, who can say? 10 years? 20? 75? I have no clue. I am constantly amazed by the ability of the Federal Reserve and the US Government to conspire to keep the financial sector solvent for far longer than I ever think possible.

The financial system tried to collapse in 2009, and needed to, with a short, sharp, painful economic depression followed with a strong recovery. Instead, they trippled down on the debt, insuring far more pain and suffering when it finally does come.

Jackwipes. But they figure they will all be dead and gone by then, and their kids will be set up to weather the collapse just fine, so it's all good. Right?

Thanks OP, for putting it in crystal clear, understandable terms anybody can follow. As if people had another reason for stress and anxiety.

Like the Chinese curse says, "May you live in interesting time."

[NJ Brazen_3133]

To add onto that is American household consumer debt

https://www.cnbc.com/2020/05/05/cons...-trillion.html

https://www.thebalance.com/consumer-...impact-3305704

It is of course much smaller. But should it not be? At the end of the day, all the Corps and govt do is provide products, and services to the consumer. If their debts are greater than their customers' spendings, well . . . .

How is corp or govt going to pay down its debt if not through sales of goods and services especially the corporations? Even when consumer is using credit, they not spending enough to cover cost of business.

[Igor Blevin]

About $4 trillion dollars of household consumer debt were moved off the private side and moved to the government ledgers via Fannie Mae and Freddie Mac.

Oh, and Student Loan debt has just reached over a trillion dollars, so add that in too. A lot of it will never be paid back, one way or another.

We have a housing bubble and a debt bubble at the same time.

[madison999]

And the Dems want to create a new credit union that will help poor people buy consumer goods as well as cars and houses. They want to rig credit (differently than it already is.

Obvious end to that is the government will have to do a bail out and will then be the backer of almost everything.