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Re: Banks are running out of money 

By: Fiz in 6TH POPE | Recommend this post (1)
Wed, 03 May 23 9:38 PM | 36 view(s)
Boardmark this board | 6th Edition Pope Board 		Msg. 42217 of 60008
(This msg. is a reply to 42214 by Decomposed)
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http://www.zerohedge.com/markets/druckenmiller-americas-debt-crisis-its-watching-horror-movie-unfold

"those $32 trillion in US debt (growing by $1 trillion every six month) and $200 trillion in off-balance sheet debt, will stay forever... or at least until the US defaults or hyperinflates."

So, 2 Trillion per year, acknowledged... gets us to 36 T next year, plus those $200T off-balance-sheet. Plus the interest, of course, which (assuming 5%) gets us another (($36T + 200T)x5%=$12T/year) with back of the envelope scratching!

And this isn't part of the bank issue, really. Except it is! I don't know where exactly those numbers come from, but let's presume it is true. Is that useful for your curve fitting?

I've long said that DEFLATION IS VOLUNTARY (the US Gov can always just sidestep the T-bill and Federal Reserve pretense and just nakedly print $500T or so ot pay off everything. And, so, for that reason, I long ago discounted it as the ultimate danger.

But it could still be a pretty exciting dip as the rollercoaster drops out from beneath our feet (and the credit card "seatbelt" stops working)!

The important thing is we keep those foreign military bases and adventures going We may need to talk "sense" to the "depositors" if they keep insisting on getting their principal back!

And, again, your curve fitting started some time ago, when the T-bill rates were much smaller than now!

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The above is a reply to the following message:
Re: Banks are running out of money
By: Decomposed in 6TH POPE
Wed, 03 May 23 6:36 PM 		Msg. 42214 of 60008

fizzy:

Re: “De, again, will likely find this interesting” And I do. But it makes perfect sense that the money supply would be contracting. A huge amount of money was injected into the economy during the pandemic, resulting in inflation. Pulling the money out should quell the inflation. So I figure that this is a MANAGED deflation.

I read today that oil is plunging. This is probably why.

Your video is correct that everyone should be wary. This would be a smart time to put a little cash into a pillowcase. Just in case.

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