US Debt Undermines Dollar Confidence (whether people realize it yet or not)

in #busy5 years ago

I was reading a story today about gold and I saw a graph that visually depicts a perfect representation of how fragile the US's finances (and thus the dollar) are these days. Here is the article from ZeroHedge: (click here)

We will be adding roughly a trillion more dollars per year to that deficit (even in good times), so this graph will only get worse going forward. I know that many don't like to think about this, but if you haven't thought about it and the implications to you, then you might want to at least have some contingency plans. Maybe nothing happens for another 20 to 50 years, but maybe people wake up much sooner.

Keep your eyes open, because if people lose faith in the US Govt's ability to control its debt and the dollar loses its reserves status, then life as we have known it in the last 30 years will change suddenly... and not for the better.

Sort:  

I love how this graph shows how the deficit is total bullshit.

Wow! That graph really is a scary visualization of what we have going on. I am and have been aware of how bad of a situation we're in. Truthfully i dont believe there is a way out of our debts. The sooner the ceiling breaks the better. That way we can try to start again. Hopefully we'll learn from our past mistakes next go around.

Yes its a eye catcher for sure. I see lots of this stuff, but this one really caught my eye. And yes I agree that there is no way out either. I think the only solution is a reset at some point. Its like we've delayed going to the doctor for 30 to 50 years, and now we're so sick there isn't anything that can be done but start over.

And yes on learning from our mistakes, but my guess is that most won't. Just like today we have plenty of times in history to look at, but every time they always seem to convince people "this time is different".

You say reset.... do you mean revolution?
😀

Not necessarily.... Its certainly possible, but I think most people are too fat and lazy for that. More likely in my opinion will be more like just poverty and misery for the unprepared. Hopefully not total chaos, which could happen in the big cities if the police can't be paid though.

I think giving the animalistic nature of people when put in large numbers, and the fact that we freak out when something as simple as her cell phone breaks, that huge interruptions indpay food supply protection and other things will result in at least some level of Chaos. I really hope it doesn't come to this, but anymore it's very believable I think.

yes... that's why I'm happy to not live in a big city anymore. I think there will be mini war zones and "no go" areas in the big cities if that does come into play. You are certainly right about chaos and a lot will depend on the way it goes down. People in a lot of the US have lost their "family" cohesion of the past, so if all hell breaks lose there won't be the tight-knit family units to keep a natural order. And I don't believe the government would be a very good alternative here in this situation either, so the best hope is to be prepared and able to "already have"/"be able to purchase" what you will need. And don't have a lot of faith in the dollar as your only method of savings.

Hey, @johndoer123

I think you and Dave pretty much arrived at the point here. There really isn't any learning from our mistakes this time. This is pretty much it. We had our chance, and as a nation/civilization, intentionally or not, we've blown it. We've taken the one true shot at freedom the world has known and we've blown it. We taken the best government ever implemented by man and corrupted it, we've taken the best economy ever to be instilled by a people and treated it as a thing of naught, and we've pretty much alienated ourselves from most of the world in the process.

I'd like to think there's a way out of this, but I don't see it. I see WWIII. I'm not sure how we come out of that unscathed. This has been brewing for well over a hundred years, and it will come to a head. The US has already survived longer as it was originally constituted than any other nation on Earth, and since we've been doing our level best to tempt fate, instead of everything in our power to cherish, preserve and protect her, it's only a matter of time before we go the way of every other people.

It's really a tribute to the divine nature of this nation's founding and the resiliency of a free market economy that we've managed to make it this far.

Amen.

It has gone nuts also since trump has been in. Time will tell how well it works out for the US. Up to something like 65K US per citizen.

yes... Its going to be $1.2 trillion per year in good times... the next recession/depression will send it well over $2 trillion. At some point that will matter, but for now the people seem to not care.

People never seem to care unfortunately. Societal apathy is on of the biggest issues of our time

I agree completely... People have been conditioned to pay less attention. With more information available due to the computerization of everything, has come less knowledge... I didn't see that coming :P

Hey, @davemccoy.

So, we more or less run a deficit every year, since we HAVE to spend more than we take in (I'm pretty sure it's an amendment to the Constitution), which runs up our debt. And then we have about six to seven times that amount of debt in unfunded liabilities. That's where the true terror lies. (Not that this big red under cliff graph isn't horrific enough).

The only reason we've been allowed to come this far is because we've been the reserve currency. But as that continues to erode, there will be no bailing us out. There will be no one who isn't affected. There will be chaos, there will be suffering, there will be deaths, and there will be destruction.

The best scenario I see is we manage to take over China and other foreign countries so our debt is completely erased. Which means America becomes the invader.

In saying that's best case, I'm saying that's about the only way we come out of this relatively unscathed, and I don't see even that happening without major bloodshed. I don't think it's the right thing to do. I don't think it's going to happen, but somehow getting our debt to foreign countries forgiven is the only way we walk away from this.

Have a nice weekend! :)

We are pretty damn close to perfectly synced on this one too Glen. I hope we don't have the bloodshed you described, but its been pretty much the playbook for centuries throughout time. It also serves as a nice distraction for people when they lose the things they can't have anymore. Plus it is the perfect way to shift blame for all ills to the "big bad enemy".

I know you were kidding about the debt was added as an amendment to the Constitution, but sadly I bet you half the congressmen don't know that :P ... And yes the unfunded liabilities are terrible, but my guess is they will never be funded because those promises will not be able to be met. I can't even imagine how bad it will be if they hit us with the truth one day and say "sorry, we've spent it all already". And who knows, maybe I won't have to... Maybe they can distract people even longer with some more "Dancing with the Stars" type shows ;)

re: amendment

Well, yeah, I was kidding, but in thinking about it afterwards, the 16th amendment (income tax) and the founding of the Fed pretty much set us on this current path.

We've got only ourselves to blame about the Congressmen. If we keep voting them back in because they bring nice things back to us using federal tax dollars, then we're part of the problem. If we want them to intercede on our behalf beyond their constitutional mandates, then we are part of the problem.

re: promises

I doubt we'll hear that everything is gone. Checks will stop going out in the mail, medical services will be denied, and the media will either be mum if it's Democrats in control and/or blaming Republicans, even though all parties will be complicit, just to carry on the charade a little longer.

I'm hoping that this will all happen 50 years from now, too, but I don't see it taking that long. Things are accelerating too quickly and there's not enough monopoly money to keep it afloat.

We sure do Not have 50 years! Less than 10 is more likely. You are right,things initially will just begin to stop working. Healthcare will go first, because they have the most control of that field.

The government checks will be last, because when those stop, riots begin. But they will cut SS first, and welfare last.

>:(

Ten, eh? Well, I was going to be slightly more optimistic and maybe split the difference at 25, but I agree, it's going to come sooner than later. Germany gets fed up propping up the European Union, especially with the southern countries, and things unravel rapidly.

There are so many different possible trigger points that if we truly knew them all, we'd probably start the spiral then, just from being overwhelmed by it all. Ignorance they say, is bliss.

I was basing that on 6 more years of Trump, with the associated gains in strength of this host; followed by 4 years of another liberal parasite who would not want to face re-election.

All he need do is assist in the dollar crash, and declare marshal law....

>:(

Sorry for the late reply, but I agree wholeheartedly with both of your points. I don't think it will take 50 years either, but they've shocked me with how long they've been able to keep it up so far. I gotta admit, with computers they can now do things much better than they used to be able to, that specifically includes manipulating people into doing what they want and when.

No worries on the late reply. I see you been kicking up some dust elsewhere. :)

It's got to happen. There just isn't any other way around it. Someone will decide to stop playing the game. Us, them, someone, and then the whole system will just disintegrate. I wouldn't mind it if it were 35 or so years down the road, but I think even that's a little too optimistic.

But as you say, they've been able to drag it out longer. And maybe they're big play is to basically take over the cryptospace, or come up with their own crypto. They need to find some other way to create value out of thin air.

It's only going to get worse until it all falls apart eventually, or a war breaks out. Keep those gold and silver bars in a safe place Dave. I'm investing in a full set of gold teeth for when things get really tough😁. They say you can't eat gold, but you can still eat with a set of golden teeth.

Posted using Partiko Android

shsss don't tell people that PK... That's not something to be discussed with anyone. Can you imagine how fast people will have your head cut off if they knew there were some gold in that there skull?

And hahaha, your right... those choppers work well with gold in them!

The silver version

It is not going to be good....by the way IWM is negative on the year now

There are multiple levels of scary that can happen. One level is that the US loses status as world base currency as other countries move away from the petro-dollar. This will cause a spike in prices. Another possibility is hyper-inflation. We could even see the dollar finally breathe its last as its purchasing power goes to zero. Who really knows though. There are a lot of things that could happen, but they might be able to paper over the problems like they did in 2008. It won't last forever though.

you are definitely right on this:

There are a lot of things that could happen, but they might be able to paper over the problems like they did in 2008. It won't last forever though.

very smart there Blondie! Its completely a fact no matter what the sages want to tell you ;)

Ohhh I agree completely. I see people every day and wonder how are they going to react when they have no money. I see the things that people waste money on and think "wow, I bet you're going to regret that one day". I don't have any idea when its going to happen, but I am convinced we can't stop the treadmill without crashing.

The best chance I see for the US to "stop the treadmill without crashing" is for the price of gold to rise and then get back on the gold standard. It would take reaching prices of around $85,000 an ounce (from what I hear), but it could happen. Otherwise, I think we're in a LOT... sorry a

LOT!!!

of trouble.

We live in a debt-driven society and there are a lot of people who are going to be crushed by their debt in the coming months. It's sad.

I agree that its sad when it happens. Many don't even understand how they've been lulled into debt. I don't know about the timeframe, but I definitely believe people will say "I wish I didn't do this or that one day". Glad you get it though! ;)

Well, for years people have been told that they need to go to college. So when they have kids, they ship them off to college. If the parents can't take on the debt to pay for it, the kids do.

While the kids are busy racking up that unforgivable debt (yeah, bankruptcy doesn't erase it. How messed up is that?), they are also being given offers for credit cards and such. That's because the campus was paid money by the CC company to get access to the students. Those kids are getting sold out all over the place.

When they leave college, they're told they need to buy a house. More debt. They think that because mom and dad (who have been working for decades) have a big tv and nice cars that they should have nice stuff too. So they take on MORE debt. It's crazy how nowhere along the line someone stopped them to say, "Hey, debt isn't the way. Here's how to do things the right way."

If everyone wasn't racking up more debt though, our whole financial system would fall apart though. It's all built on keeping us all in debt bondage. Yay! :(

yes you are right, right, right.... Well done Arch, you have this sorted out very well! And yes they are like drug pushers enticing everyone to take on debt. Its how they can take the assets for themselves in the reset too. If you have debt on it, it will be theres one day. So think about that the next time you want to trade in your car and get a new payment.

"I'm so scared right now!"

Yeah, the situation is not looking good. Have you watched Mike Maloney's "Hidden Secrets of Money"? I keep telling people about it because I thought the series was so enlightening. I don't normally recommend informational videos, but I give this one my thumbs up.

I haven't seen it, but since you've given it a thumbs up then it will be on my evening viewing tonight! Thanks and I think anything that educates people to this issue is a good thing. One day its going to be a brutal time, I just hope people take the time to prepare!

I watched part of it on lunch break. Just the opening few sentences have more truth in them then our last 5 presidents...combined.

Just the opening few sentences have more truth in them then our last 5 presidents...combined.

Well that's not difficult! Ha ha.

I'm glad you've started on it. I think you'll continue to find it not only entertaining, but valuable.

This is part 1 of an 8 part series. I got hooked as soon as I started watching. They were addicting and very informative. Let me know what you think.

Will do... I will check it out in a couple hours for my nighttime horror flick :P

I watched the first video, it was very good! I will watch the others when I have time too :)

I figured that you would like it. Yes, it's a lot of background information, but it helps you get a better understanding of what's happening in the background of this whole big financial system that we're in. Have fun!

Hi @davemccoy!

Your post was upvoted by @steem-ua, new Steem dApp, using UserAuthority for algorithmic post curation!
Your UA account score is currently 4.957 which ranks you at #1105 across all Steem accounts.
Your rank has improved 35 places in the last three days (old rank 1140).

In our last Algorithmic Curation Round, consisting of 244 contributions, your post is ranked at #197.

Evaluation of your UA score:
  • Some people are already following you, keep going!
  • Your contribution has not gone unnoticed, keep up the good work!
  • Try to work on user engagement: the more people that interact with you via the comments, the higher your UA score!

Feel free to join our @steem-ua Discord server

Coin Marketplace

STEEM 0.36
TRX 0.12
JST 0.039
BTC 70112.96
ETH 3549.99
USDT 1.00
SBD 4.71