A (Short) Story & a Question

[skipsanole]

50 years ago in September of '70 I walked up the stairs of Westcott and into Ruby Diamond for my very first class at F.S.U.....Econ 101. The professor stood behind a podium on the stage and read from the text book that he had written and we students were required to buy for the class. It was dark in there and I'll confess to sleeping through most of Econ 101. I think I got a B.
Now for my question... A few months ago "they" printed (digitized) 3 Trillion $. They are getting ready to print another two or three Trillion to add to the 25 Trillion we already owe. For someone who didn't sleep through Econ 101. Is there a tipping point ? Is it 50 Trillion, 75 ? At what point does this whole thing fall apart I'm hoping someone can tell me we have another 10-15 years before the feces hits the fan. I don't want to be around when it does.

 

[goldmom]

I was there but took my Econ in Bellamy! I don't have an answer but I'll just go with two words that would fit us both if things DO collapse: Soylent Green...

 

[RealtyNole]

MMT. It really stands for magic money tree.

 

[Dr. Nole]

Just my opinion but I believe most folks don’t look at the national debt as something real(to them)
It is some obscure, nebulous unimaginable # out there, way too large to comprehend or to be understood.

‘Somebody else borrowed this $ anyway...not “me”...besides, who is actually going to come and try to collect it?‘

 

[SoddyNole]

Monetize the debt and let inflation help out.

I slept during both Eco classes I was required to take.

 

[89nole]

It’s funny how the deficit worry only is a concern at certain times. Very curious.

 

[RealtyNole]

“Back in October, I published a blog post titled, “This Is What Monetization of the Debt Looks Like,” arguing that the Fed’s intervention in the repo market at the time was not a return to “quantitative easing,” as many critics suggested at the time, but simply the central bank acting as lender of last resort to the Federal Government. It was, in its purest form, a commitment to monetize that amount of debt that could not be absorbed by the market.…”

continued at:

https://thefelderreport.com/2020/08/12/this-is-what-fiscal-dominance-looks-like/

 

[skipsanole]

It’s funny how the deficit worry only is a concern at certain times. Very curious.

Just to be clear, I’m not worried or concerned about the deficit or the national debt. I learned a long time ago not to worry about things I have no control over. I just wondered if there was a “tipping “ point and what that point might be?

 

[89nole]

Just to be clear, I’m not worried or concerned about the deficit or the national debt. I learned a long time ago not to worry about things I have no control over. I just wondered if there was a “tipping “ point and what that point might be?

This country historically has run huge deficits especially in times of crisis.

 

[F4Gary]

Just my opinion but I believe most folks don’t look at the national debt as something real(to them)
It is some obscure, nebulous unimaginable # out there, way too large to comprehend or to be understood.

‘Somebody else borrowed this $ anyway...not “me”...besides, who is actually going to come and try to collect it?‘

I think most of America is rather ignorant. Present company excepted of course.