It’s just a way to confiscate the wealth of the masses, to make them dependent upon the state. It’s diabolical.
I can't see any alternative. Many other nations have done this, from the 1920s until now. Governments, ultimately, do not pay their debts.
But the US is a superpower. It would cause much turmoil, and the US dollar will no longer be the world's reserve currency.
DUH!
Compound interest is the friend of savers and the nemesis of debtors....whether individual or collective.
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>> Is it reasonable to foresee ‘hair-cuts’ on peoples savings?
Of course! Inflation will take what the government doesn’t rob.
>> Nationalization of IRAs?
They have talked about it. Wealth taxes too.
>> Bank holidays and bank closings?
Not sure about that; the big banks are vital for the State to exercise its financial power. Regional and local banks may suffer though.
Here’s another one for you: what will happen to local (i.e. non-federal) governments when inflation goes through the roof and/or the fedgov begins their thieving? States and locales don’t have a printing press and can’t commandeer the citizens’ wealth. Most state and local government can’t raise taxes beyond incrementally without voter approval. But they CAN take your suddenly inflated real estate if you can’t pay your property tax...
fasten seat belts for rough landing...
Maybe Speaker Johnson can fix this?
Interest on the federal debt is now so immense that it's consuming 40% of all personal income taxes. The largest source of revenue for the federal government is increasingly being devoted to just servicing the debt, not even paying it down.
The problem is getting worse daily . . .
US national debt tracker for April 12, 2024: See what American taxpayers (you) owe in real time
Thanks to a combination of high inflation, rising interest rates and unrelenting growth in the national debt, interest payments are expected to triple from nearly $475 billion in fiscal year 2022 to a stunning $1.4 trillion in 2032.
Given that the left refuses to cut spending on wasteful communist-socialist pogroms and too many politicians overall refuse to cut spending on pork . . .
Some time within the time-span of mid 2027 on up to mid 2029, all of personal income taxes will be paying all of the interest on the national debt. None of personal income taxes, will be paying down the national debt.
With that in mind, along with the bottlenecks, chokepoints, and roadblocks created by government bureaucratic regulations, weighing heavily on what American producers can/might do . . .
Where’s Captain Obvious? You don’t have to be a math wizard to see the numbers growing and have predicted this years ago.
At a population of ~333M, it takes 3 dollars from every man, woman, child and alphabet person to collect $1B. It takes $3,000 from each to collect $1T. x35, it takes $105,000 each to collect $35T. Or for each family of four, $420,000. In short, it will never be paid off and there is no intent to pay it off. The debt may increase exponentially until it spirals out of control and essentially becomes worthless.
Inflation acts like a tax on all currency, whether in a savings or checking account, or under your mattress. If a dollar used buy two cans of beans, and now buys one can of beans, the can of beans did not change, the dollar devalued to be worth one can of beans.
https://fiscaldata.treasury.gov/datasets/historical-debt-outstanding/historical-debt-outstanding
9/30/1982 ... $1,142,034,000,000.00
9/28/1990 ... $3,233,313,451,777.25
9/30/1998 ... $5,526,193,008,897.62
9/30/2006 ... $8,506,973,899,215.23
9/30/2014 ... $17,824,071,380,733.82
9/30/2022 ... $30,928,911,613,306.73
9/30/2023 ... $33,167,334,044,723.16
They are basically looting the Treasury at this point and not making any attempt to cut spending. So it’s pretty much inevitable that things are gonna crash at some point. There’s not much we can do now to turn things around so prepare for the worst.
The Dodd act of our last meltdown established “ Bail-ins”. The opposite of Bail outs.
Bail Ins have already been used in the EU and other countries. A Bail In states a depositors money deposited in a bank belongs to the bank as “ Primary” account holder. Reasoning: The Rule treats your cash like an investment, you gave it to the bank and they invest it.
The way it has been done in the past is on declared insolvency, the account holder is given stock in the bank equal to his deposits, which he can not sell for three years.
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“Bank Bail-In vs. Bank Bailout
Bail-ins and bailouts are designed to prevent the complete collapse of a failing bank. The difference between the two lies primarily in who bears the financial burden of rescuing the bank.
In a bailout, the government injects capital into banks, enabling them to continue their operations. During the financial crisis of 2007-2008, the government injected $700 billion into companies like Bank of America (BAC), Citigroup (C), and American International Group (AIG) using taxpayer dollars.
2
Bail-ins provide immediate relief when banks use money from their unsecured creditors, including depositors and bondholders, to restructure their capital. Banks can convert their debt into equity to increase their capital requirements. Banks can only use deposits over the $250,000 protection provided by the Federal Deposit Insurance Corporation (FDIC)…*Since the principal objective of the provision is to protect American taxpayers, banks that are too big to fail will no longer be bailed out by taxpayer dollars. Instead, they will be bailed in.”
I will add the recent Bail Out ( SNB California failed bank) the Dodd Bail In provision was WAIVED, illegally. More than a few Congressmen brought this issue up, but were overridden by Democrats.
That said, the FDIC “ insurance” account only has a FRACTION of money held in reserve to cover trillions in deposits. In the event of widespread bank closures all accounts WILL be subjected to the Dodd Rule.
It pays to be informed- when I ask people what a Bail In is, ALL have no idea what so ever.
It’s THE PLAN
Nothing of this magnitude and long duration is unintentional
The article notes that globally demand for US government debt is dropping, helping drive the rates higher and accelerating growth of the debt. Who wants to be the bagholder when the government starts defaulting on its debts? More to the point, who wants to support this government by funding it? There are plenty of other, less anti-American ways to invest your money.
National debt currently informs why Hitler had to raid all the gold in other countries to keep his agenda alive.
The French ‘experiment’ is of interest. I recall this as the Mississippi bubble ?
Depts ALWAYS come due.
Nationalization of IRAs?
Yes. The government will be on these quickly in a crisis.
Bank holidays and bank closings?
Happened before, will happen again.
You forgot confiscation of privately held gold and silver, resist this with your dying breath.