Martin Q. Blank said:

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I'm not even sure what it means for a country to go bankrupt since they can just print more money to service the debt. Is there a worldwide bankruptcy court?

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ASK GREECE what happens

Greek banks going bankrupt during their debt crisis in 2008

That's only a piece of the solution . Necessary but
not sufficient.

Buy Bitcoin.

jpb1999 said:

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My question as well. What do normal people do with their money to help hedge this?

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https://vongreyerz.gold/avoid-the-coming-debacle-with-your-personal-gold-bank

HollywoodBQ said:

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I get FDR for Social Security and Nixon for the Gold Standard.

But shouldn't LBJ get the blame for Welfare?

Bush 43 for endless war in Iraq, Afghanistan and of course the subprime bailout during the GFC.

Obama for Healthcare.

And in this election year, Trump for shutting down the world and printing money during Covid?

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Subprime collapse is 100% on Clinton.

Kyle Field Shade Chaser said:

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So what happens when America goes bankrupt?


They just get told bad boy, and keep running just like normal the same as all the big business that go bankrupt and stay in business?

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We have a printing press so we'll never default or go bankrupt, but we can trigger a recessionary, inflationary spiral that wrecks our currency and economy. Nobody knows exactly how they would play out, but it would involve credit downgrades, rising rates to compensate investors for the credit downgrades, increased printing to cover the expanding deficit (because rates are rising and we're paying more on interest), and maybe a loss of reserve currency status and/or a flight out of the dollar which would exacerbate all 3.

It's really hard / impossible to predict this stuff because in large part a currency is measured relative to other currencies, and pretty much all of the world's other countries + currencies are even stupider than we are. So if we get a couple of downgrades and our deficit expands, but demand for the dollar skyrockets because foreign investors see the dollar as safer than their currencies, the bad effects (increased money supply, increased deficit) are being offset by foreign demand. These are just a few elements - in reality the dollar's future is a mix of dozens of major forces pulling it in different directions.

The smart thing is to get our house in order, but there's no appetite for that. That's not surprising in a country that pays well over $100B in credit card interest every year. We are a nation of "I want it now, consequences be dammed."

cheeky said:

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HollywoodBQ said:

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I get FDR for Social Security and Nixon for the Gold Standard.

But shouldn't LBJ get the blame for Welfare?

Bush 43 for endless war in Iraq, Afghanistan and of course the subprime bailout during the GFC.

Obama for Healthcare.

And in this election year, Trump for shutting down the world and printing money during Covid?

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Subprime collapse is 100% on Clinton.

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Collapse, I agree is on Clinton.

But the bailout is all on W.

jpb1999 said:

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My question as well. What do normal people do with their money to help hedge this?

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Prepare for the collapse

Our govmt is spending $1 trillion every 100 days. The interest on servicing that debt is now the third largest line item and is more than defense, Medicaid, or medicare. There is no solution and it cannot be repaid. The US Dollar will continue to lose buying power due to inflation as has every FIAT currency that has ever existed.

ETA: I've seen some questions about how to hedge - gold and bitcoin. Gold is the only currency that has been and always will be a store of value. Bitcoin is the digital age version of Gold but both have some limitations. I wouldn't go crazy dumping all of your money into these but you should have some of both.

jpb1999 said:

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LMCane said:

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jpb1999 said:

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My question as well. What do normal people do with their money to help hedge this?

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we have literally been discussing this EXACT issue several times in the last few months on this board

I created an entire thread about it.

buy gold.

get a second passport

move your assets to a secure bank overseas

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Thanks. Link please?

Why a 2nd passport? Can you have 2 passports?!?

What assets to move into a secure overseas bank? If still dollars what good does that do?

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Yes you can have two passports or even more

subscribe to this guys channel

You can but it should be illegal. Make a commitment

A bigger concern is the explosion of 401K programs and the constant growing passive bid on the S&P over the last decade. Every paycheck brings bids at the ask. That's the biggest single variable driving the markets higher. More people will reach retirement age in the next 6 years than ever before in history. If an AI unemployment trend develops in parallel, we will see a major crash. Not if, but when the passive bid reverses.

What will Blackrock do to protect themselves? They will, and have been, courting Chinese retirement. How? By handicapping the west with woke DEI BODs that give China Petro market share and a new generation of non-binary protesters, replacing producers.

It's not a "conspiracy theory". The facts are public.

Martin Q. Blank said:

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I'm not even sure what it means for a country to go bankrupt since they can just print more money to service the debt. Is there a worldwide bankruptcy court?

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That's the problem.

There are a couple of ways I know of to deal with it.

As you say, one way is to just print more and more money, creating more and more inflation.

The other way would be to renege on the debt -- tell those to who we owe money that we aren't going to pay it back and that there is nothing that they can do about it.

Either way tanks the economy and the country.

HollywoodBQ said:

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But shouldn't LBJ get the blame for Welfare?

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most estimates note the US federal government as having spent approximately $25 Trillion in its War on Poverty

https://budget.house.gov/press-release/60-year-anniversary-of-the-war-on-poverty_-are-we-winning-or-losing

Assuming there are 40 million people living in poverty in the US, had we simply given those 40 million people the $25 Trillion dollars, they would have received $625,000 each.

The US economy and the tesla cyber tuck have a lot in common.

Not news. We are headed quickly where everyday folks will quit buying treasury bill and government notes to fund this crap and then we will have the dammest depression this country has ever seen. AND Kamala wants to ramp up spending and increase taxes to about 85%. Wait and see. guaranteed income, free child care, and reparations for all of color.

hell yes he is correct. Even the Fed chief has said so. Worst than Greece.

tysker said:

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HollywoodBQ said:

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But shouldn't LBJ get the blame for Welfare?

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most estimates note the US federal government as having spent approximately $25 Trillion in its War on Poverty

https://budget.house.gov/press-release/60-year-anniversary-of-the-war-on-poverty_-are-we-winning-or-losing

Assuming there are 40 million people living in poverty in the US, had we simply given those 40 million people the $25 Trillion dollars, they would have received $625,000 each.

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And a majority of the recipients would have blown through that money within a year. Have you no memory of the money doled out to the New Orleans diaspora post-Katrina?

ttu_85 said:

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P.U.T.U said:

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Doesn't take someone of Musk's IQ to figure this one out

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Yep. We have known for a long time but that can got kicked down the road so many times that its as flat is a pancake. That issue is the elephant in the room.

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Buglerank62 said:

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hell yes he is correct. Even the Fed chief has said so. Worst than Greece.

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He is correct, but then again, many on here have been saying the same thing for decades, even if the person in the White House had an R by their name.

Maybe Elon visits F16 to get his info. Stranger things have happened.

rwtxag83 said:

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Aggiecadet said:

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And we wonder why America keeps getting into debt, people can't afford groceries, and the whole world hates us. pic.twitter.com/FI91AsqNCU

— Declaration of Memes (@LibertyCappy) July 26, 2024

And we wonder why we are in so much debt

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We're not in debt because we bombed those countries. Why even show something like this?

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Chinese propaganda on TikTok.

Tom Fox said:

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Helicopter Ben said:

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Kyle Field Shade Chaser said:

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So what happens when America goes bankrupt?


They just get told bad boy, and keep running just like normal the same as all the big business that go bankrupt and stay in business?

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Pretty much. Not enough people understand what's really causing this. It's a self-serving problem for the government. Inflation is the govt's get out of debt free card. But they never use it for that. They just use it to spend even more.

Another benefit to the govt is that as cost of living increases, demands for the government to "do something" will increase. We're already hearing the grumblings for price controls on certain things. This will, of course, lead to shortages or stark decline in quality like in the case of rent control. As these demands for govt action increase, so will the spending. And the Fed will be there to monetize all of it, leading to more…you guessed it; inflation. This point is where the snowball effect happens and we could very easily hit hyperinflation.

The bottom line is that the majority of Americans would not support what needs to be done to fix this. It would mean a drastic reduction of government spending across the board. We would have to look at major cuts to everything from social security and Medicare to military spending. Even if people understood what's causing this and that these cuts are what's best for them and the country at large, they would not support it because "they're owed." They want someone else to take the haircut.

If the above is true, then it's a mathematical certainty that we will see hyperinflation or some sort of transition to cbdc. The only solution for individuals is to spend your dollars now. Buying precious metals should be your first line of defense. If you're willing to speculate with more risk, buy some Bitcoin or other cryptos.

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I agree with this. But I am buying property instead of gold or crypto.

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I have property, and it is doing well for us. However, with property there is some time and money involved with maintenance and management. There is also additional money involved in property taxes and insurance every year. There is none of that with gold and silver. If a person is wanting to hedge against hyper inflation but cannot or does not want to manage additional property, precious metals are an alternative.

Tom Fox said:

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I disagree. The military is a core function of the federal government enshrined in the constitution at our founding.

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Defense is a core function. How in the world can anything we've done since WW2 even remotely be considered defense? We've spent trillions on our massive military empire. It's the third largest item in the budget. As Ron Paul always said, if we focused on actual defense…like of the homeland, we could spend a fraction of what we do and become a fortress. We can't even defend our own border from millions of illegal immigrants. I never said cut it entirely. We don't need hundreds of bases in practically every country on earth. We don't need to spend even a fraction of what we do to secure the homeland.

Quote:

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Entitlements are not the role of government and are nowhere in the constitution.

They have to go first. All of them. Then we can take stock of where we are and look at cutting core government functions like security.

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Agreed. I'll retract my statement about doing those second and clarify let's do all three of them at the same time. Our government is the most wasteful organization in human history. I can't believe fiscal conservatives would defend our insane military spending.

tysker said:

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HollywoodBQ said:

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But shouldn't LBJ get the blame for Welfare?

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most estimates note the US federal government as having spent approximately $25 Trillion in its War on Poverty

https://budget.house.gov/press-release/60-year-anniversary-of-the-war-on-poverty_-are-we-winning-or-losing

Assuming there are 40 million people living in poverty in the US, had we simply given those 40 million people the $25 Trillion dollars, they would have received $625,000 each.

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That is crazy.

Just like when they try to build houses for the homeless in Los Angeles and it winds up costing more than a regular condo.

What's crazy is when I talk to my favorite teacher who teaches on the wrong side of the tracks and she tells me about how much free food and housing we give these folks. And the fact that it's generational now is just nuts.

carl spacklers hat said:

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tysker said:

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HollywoodBQ said:

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But shouldn't LBJ get the blame for Welfare?

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most estimates note the US federal government as having spent approximately $25 Trillion in its War on Poverty

https://budget.house.gov/press-release/60-year-anniversary-of-the-war-on-poverty_-are-we-winning-or-losing

Assuming there are 40 million people living in poverty in the US, had we simply given those 40 million people the $25 Trillion dollars, they would have received $625,000 each.

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And a majority of the recipients would have blown through that money within a year. Have you no memory of the money doled out to the New Orleans diaspora post-Katrina?

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I was going to add a comment about new rims, weaves and hair extensions. While the kid gets free breakfast and lunch as school.

Here's what you can do now.........listen to Jim Rickards, Doug Casey, and other hard money advisors., Get out of dollar backed investments like stocks, bonds, bank holdings. Invest in commodities, especially gold, silver, and oil. Commerdial real estate is in the process of imploding. Banks will tank when the CREs can't pay rent or mortgages

Woodrow Wilson started it.

jpb1999 said:

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How/where are you buying PMs? In what form?

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There are several reputable dealers online. It's super easy and safe to order from them. My favorites are JM Bullion and Provident Metals. Provident is located in Dallas so I believe you could go pick it up in person. I don't care about collectibility so I always go for the lowest premium from a reputable mint. Usually just one ounce coins or rounds for gold and silver. When I want more silver I'll buy 10oz or stackable kilo bars.

Helicopter Ben said:

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Tom Fox said:

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I disagree. The military is a core function of the federal government enshrined in the constitution at our founding.

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Defense is a core function. How in the world can anything we've done since WW2 even remotely be considered defense? We've spent trillions on our massive military empire. It's the third largest item in the budget. As Ron Paul always said, if we focused on actual defense…like of the homeland, we could spend a fraction of what we do and become a fortress. We can't even defend our own border from millions of illegal immigrants. I never said cut it entirely. We don't need hundreds of bases in practically every country on earth. We don't need to spend even a fraction of what we do to secure the homeland.

Quote:

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Entitlements are not the role of government and are nowhere in the constitution.

They have to go first. All of them. Then we can take stock of where we are and look at cutting core government functions like security.

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Agreed. I'll retract my statement about doing those second and clarify let's do all three of them at the same time. Our government is the most wasteful organization in human history. I can't believe fiscal conservatives would defend our insane military spending.

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Oh I agree that our defense spending is ridiculous and not necessary. I just think cuts to that should come right after entitlements.

Definitely Not A Cop said:

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Buy Bitcoin.

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If the U.S. economy went into recession (or worse) the crypto universe will nosedive much worse than the traditional stock
market. You better hope the real-world keeps thriving and producing if you are banking on digital assets in your investment portfolio.

Edwards69 said:

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Here's what you can do now.........listen to Jim Rickards, Doug Casey, and other hard money advisors., Get out of dollar backed investments like stocks, bonds, bank holdings. Invest in commodities, especially gold, silver, and oil. Commerdial real estate is in the process of imploding. Banks will tank when the CREs can't pay rent or mortgages

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Buy canned goods and bottled water, too.

Seriously, the USA is going to go bankrupt, but its not going to be for most people's lifetimes on here. It took the USSR 80 years to go bankrupt. It took Argentina 60 years to go bankrupt. It took Greece 50 years. I don't care if you want to blame GWB for taking a "surplus" and blowing it on tax cuts and wars or if you want to blame Obama for spending more in 4 years than everyone else before him combined. Either way, its gonna take about 90-100 years for the world's largest economy to go under, as its much bigger than anything the Soviets ever had or what the Chinese currently have. My guess is somewhere between 2100 and 2150 will see that timebomb explode.

Don't stop investing in stocks and bonds. Those companies make money in whatever environment exists to use their products and services. Owning precious metals only is a disaster. Silver has use beyond jewelry, but gold doesn't. And if you think when the s hits the fan that a brick of gold will get you food or shelter, all I will say is good luck with that.

HollywoodBQ said:

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tysker said:

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HollywoodBQ said:

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But shouldn't LBJ get the blame for Welfare?

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most estimates note the US federal government as having spent approximately $25 Trillion in its War on Poverty

https://budget.house.gov/press-release/60-year-anniversary-of-the-war-on-poverty_-are-we-winning-or-losing

Assuming there are 40 million people living in poverty in the US, had we simply given those 40 million people the $25 Trillion dollars, they would have received $625,000 each.

---

That is crazy.

Just like when they try to build houses for the homeless in Los Angeles and it winds up costing more than a regular condo.

What's crazy is when I talk to my favorite teacher who teaches on the wrong side of the tracks and she tells me about how much free food and housing we give these folks. And the fact that it's generational now is just nuts.

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If you want to ruin your Friday just google welfare cliff

https://www.budget.senate.gov/newsroom/budget-background/the-welfare-cliff-how-the-benefit-scale-discourages-work

Quote:

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A paper presented at the American Enterprise Institute by the Pennsylvania Secretary of Public Welfare found that because of the stacking of welfare benefits, many individuals receiving welfare stand to lose financially by increasing their income. In one example, the study demonstrated how a single parent with two children earning $29,000 would have a net income, including welfare benefits, of $57,000. Therefore, the individual would need annual earnings to jump from $29,000 to $69,000 (pre-tax) to maintain the same standard of living without welfare benefits.

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https://www.atlantafed.org/economic-mobility-and-resilience/advancing-careers-for-low-income-families/what-are-benefits-cliffs

You left beer, guns, and ammo off your list.

Agree that stocks in good sturdy businesses will do
Ok in hyperinflation. As the dollar devalues the stock prices will go up as will the earnings but the P/E ratios
Won't necessarily change that much

Money doesn't matter? Did you know that the welfare queens still get their checks even when the government is unfunded and "shutdown".

It's all a joke. They just print the money and everything is ok. A complete scam and clown show. Your money is worthless. My silver and gold is not.

P.U.T.U said:

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Doesn't take someone of Musk's IQ to figure this one out

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No, but we need people like him saying it over and over.