[ 3 / biz / cgl / ck / diy / fa / ic / jp / lit / sci / vr / vt ] [ index / top / reports ] [ become a patron ] [ status ]
2023-11: Warosu is now out of extended maintenance.

/biz/ - Business & Finance

View post   
File: 53 KB, 442x210, Screenshot_2019-04-05 U S National Debt Clock Real Time.png [View same] [iqdb] [saucenao] [google]
13232253 No.13232253 [Reply] [Original]

>just keep investing! the US default is not real
99% of this board are retards investing in the worst economic scenario.

>> No.13232259

>>13232253
>LOAD THE FIAT FUD

>> No.13232261

>>13232253
im confused are u telling us not to keep cash or not to buy bitcoin?

>> No.13232996

>>13232253
The US would print its way out way before they defaulted

>> No.13233204

Our money isn't real so neither is any debt associated with it.

>> No.13233313

>>13232253
See the thing is when you have a shit load of military like the US does why the fuck would anyone come after you for debt

>> No.13233398

>>13233313
Those treasury bonds expire. Nobody is obliged to loan the US government new money.

>> No.13233525

>>13233398
yeah but judging from the yield the demand is quite good.
I'll give you a secret.
The only thing that matters is the interest on debt.
As long as that is payable all is well.
That's why Japan has a debt to gdp twice the US's. The yields are almost negative.

For the US though net interest is on the rise.
https://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm

+7.42% this year so far
+14% last year
+6% 2017
+7.5% 2016

Why is the rate of growth smaller?
Yields are dropping.
Keep an eye on the yield.
If the yield ever goes to 4, buy gold.
If not, keep on partying.

An 8% annual rise on a budget item that is almost as big as the defense budget is not sustainable.
However if yields go to zero, so will the interest
If yields go to 4%, interest will explode to a trillion, raising the amount of debt that needs to be issued to balance the budget, which in turn raises yields due to higher supply.
Viscous circle.
Ends when the gold price becomes high enough that the US could sell off its reserves to starve the debt market from new debt issuance.
It's what happened in 1980.
Gold would hit over 20k if it were to happen again.
But wait with buying gold till you see the yields rise.

>> No.13233536

>>13232996

The US can't print it's own money so nope, not possible.

>> No.13233857

>>13233536
Wrong.

>> No.13234204

>>13233536
He’s kinda right. The federal reserve isn’t owned by the US, they print the money.

>> No.13234222

>>13232253
When you're the biggest dick in the game, when your currency is the foundation of the global economy, when the dollar is the place foreign investors seek safety....debt honestly doesn't matter. When it's your game, you can make the rules.

>> No.13234240
File: 41 KB, 657x527, 1552551233167.jpg [View same] [iqdb] [saucenao] [google]
13234240

>>13233313
Most debt is owned by US Citizens, those citizens are also what makes up the military.

The only positive revolution to ever happen in history came out of this nation, it's highly possible you see it again.

>> No.13234265

>>13234204
they're authorized by congress, who could change the rules if they wanted and make it so that tomorrow, the fed was gone

>> No.13234286

buying silver

>> No.13234331

>>13233525
20k gold would be literally nothing, when the dollar is completely wortheless.

>> No.13234440
File: 56 KB, 453x604, shit-eating retard AKA you.jpg [View same] [iqdb] [saucenao] [google]
13234440

>/biz/ doesn't even know how national debt and reserve banking works
The debt is for every pleb to pay, and it's infinite. All the numbers in OPs pic are meaningless in the full context of the situation. Had a webm to explain it to you fucktards but it's gone so fuck it. dyor