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Over the next three months: from CNBC
The level of spin in this article is astounding. Imagine how much better off the American public is that the Treasury is borrowing only $776B instead of JPM's projected $800B!
That's so positive!
Makes me sick.
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just a casual 1.6 trilly
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A trilly here and a trilly there and eventually we’re talking about a lot money, etc
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It's not borrowing if they do not intend to pay it back... what's the other word I'm looking for here... help me out, guys ... :-)
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Why don't they cut expenses instead
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Because at this point, government spending is an upward force putting a floor below the slowing economy. Beyond just the impact of the sheer dollars involved, increasingly many industries look to the gov't for direction on where to go/invest in.
Great example is EV's; carmakers are losing billions per year diving headfirst into manufacturing EV's that consumers don't want. But because the government wants it, and since there are plenty of incentives in place and political goodwill to be accrued, companies do it anyway.
Plenty of other examples out there showing this distortion field rampant government spending creates (offshore wind, being another pristine example).
Basically, without government spending acting like Atlas holding up the world, the bottom of the economy would fall out entirely. So expenses will never be cut, GrOwTh must be achieved at all costs, to keep the debt-based system spinning perpetually forward.
Let me know if you have any questions about the above. Hope that helps.
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Thanks for sharing. I would like to know more. What’s you’re area of expertise?
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My background is in analytics/credit risk, risk pricing. I'm an armchair economist for fun.
Edit: do you have any specific questions? Happy to continue discussing further. Let me know.
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I just saw an offshore wind project was cancelled. What are your thoughts on how Tesla and what they are doing? Will traditional ICE make the transition to EV or will they go bust?
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I think they'll make the transition - albeit very painfully and at substantial cost to the consumer. I am confident that ICE automakers will subsidize the EV losses by raising prices on all their vehicles. Tesla is much better positioned because it has already moved past the growing pains of scaling up EV manufacturing.
Thanks for the great set of questions! Happy to continue discussing if you'd like. What do you think?
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at this point, government spending is an upward force putting a floor below the slowing economy.
If the government continues to borrow and spend, due to being in so much debt already and due to the amounts being so big now, in order for the new debt to be attractive for anyone to hold, it must be such high yield that it will suck liquidity from other asset classes and thus having a slowing effect on the economy. But lets see.
We are getting to a point where its either the government that grows or at least avoids shrinking or everyone else does. There is no more room for a growing economy and a growing government. Its one or the other from now on. Despite whatever financial voodoo they try. But lets see.
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Wanted to add a follow-up on this thread regarding offshore wind. Saw this article today. Confirms everything I/others have mentioned with regard to efficient allocation of (taxpayer funded) government funds.
The outcome should not be surprising even if the quoted reasons for failure are pretty hilarious. The CEO can't come right out and say it, but the projects were never viable. Blaming rising rates just means that ZIRP was necessary for these projects to succeed.
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Imagine asking your friend to borrow stealing $1,600 dollars and when asked why saying, "to pay for shit duh. I was going to ask for another $76 but I had a good quarter."
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Digging a deeper hole. Lovely...
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US is practically insolvent and it's like throwing money into a dumpster fire to lend them money.
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privately-held as in the Federal Reserve?
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Borrowing? Like they are intended to pay it back 🤣
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👻 good news for bitcoin 👻
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Sad to see. But this is the government we deserve. All these bitcoiners who “opt out” of politics then complain when FinCen pushes rule making that basically makes bitcoin illegal thinking that coinjoins and buying on Bisq will somehow protect you is a false sense of security. As I heard on a recent podcast bitcoiners might not care about politics but politics cares about bitcoiners and if you don’t get involved other people will and find a reason to strip your wealth away like FinCen is actively doing right now
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i will know what number comes after a trillion in my lifetime :(
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These paralytics are sucking the markets dry. Let's see if Jerome holds ground.
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This is criminal. Everyone else is forced to cut expenses and adapt their lifestyle and the way their companies run. But the government just borrows money to cover the short fall. And who is paying for it? YOU AND ME
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Great. Like we needed the fed to actually function. ⚰️
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Accelerating.
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