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>30.2% of US GDP How much further can they go? 26 million or so recent unemployment applications and the stock market is not off much from recent all time hig

>30.2% of US GDP How much further can they go? 26 million or so recent unemployment applications and the stock market is not off much from recent all time highs. This is more concerning than the initial falling knife mid-March.

selectodude 6y ago
The Bank of Japan’s balance sheet is at 110 percent of GDP.
- throwanem 6y ago
  I was about to make a joke that it looked like they could go about another 69.8%. Now I'm glad I waited. What does that even signify, a federal bank owning >100% of its attached country's GDP? Debt in excess of produced value, i.e., the country being underwater?
  - yeldarb 6y ago
    GDP is per year. Analogous to a person making $100k/yr with a $110k mortgage. Edit: Although perhaps not that analogous because is this even technically "debt"?
    - ashtonkem 6y ago
      The analogy has always been strained, since national debt just doesn’t work like personal debt. Also, when you can borrow at sub-inflation rates, there’s rarely an incentive to stop.
      - RobertoG 6y ago
        It's the Bank of Japan who decide the borrowing rates, so, not problem in that regard.
        eslaught 6y ago
        Ok, but they don't control inflation. At some point, I think it's obvious that printing money becomes counterproductive. But where exactly is that line?
        deleted 6y ago
        [deleted]
        ashtonkem 6y ago
        They don’t control inflation. But all of the warnings about hyperinflation being “right around the corner” have remained hilariously false. So who knows?
        WanderPanda 6y ago
        They only control their inefficiency around an increasing trajectory
        RobertoG 6y ago
        The Bank of Japan, can actually control inflation, because, as we have determined, they control the interest rate. Also, if necessary, the government could raise taxes and run a surplus to diminish inflationary pressures. But those are moot points, because the problem of Japan for the last 20 years has been deflation, not inflation. Despise that, as you can see in the comments here, there are people that still predict inflation in the future.
    - RobertoG 6y ago
      It's not debt, it's only a number that reflect the accumulate of past government deficits. A government is the issuer of the currency, so, nothing to do with the debt of a household or a business.
    - isoskeles 6y ago
      What if we alter that analogy to a person who makes 100k/yr with a 110k mortgage, and next year they make 101k with a 115k mortgage, and next year they make 102k with a 120k mortgage, and so on?
      - freeone3000 6y ago
        Then I think we should rename it from "mortgage" to "student loans". As long as they keep making minimum payments, this is technically fine.
        isoskeles 6y ago
        Misses the point, but sure, "student loans" is a fair comparison. The name doesn't matter to me, it's all debt. I don't see it as "technically" fine that the rate at which the debt grows consistently exceeds the rate at which the income grows. There comes a point in time in which the principal of the debt is large enough that minimum payments exceed income.
    - erentz 6y ago
      The US government doesn’t make 100% of GDP. GDP is $21 trillion. US government takes in $3.46 trillion.
Fjolsvith 6y ago
Gotta tell you guys that the Fed is going to get restructured. Basically its going to declare bankruptcy and stiff the central banks to whom it is indebted. Trump is looking to nominate Judy Shelton to the Federal Reserve as she is the one who will do the restructuring. [1] How is he able to do this? “The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, using the Exchange Stabilization Fund, will make an equity investment in each SPV and be in a “first loss” position. What does this mean? In essence, the Treasury, not the Fed, is buying all these securities and backstopping of loans; the Fed is acting as banker and providing financing. The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury. In other words, the federal government is nationalizing large swaths of the financial markets. The Fed is providing the money to do it. BlackRock will be doing the trades. This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump.” [2] So what does this mean? The US is going to go to a gold backed currency. The federal debt is going to be wiped out. With no federal debt to pay interest on, personal income taxes are going away. The whole wealth transfer mechanism of the central bank system gets cut off. Edit: Take note of the change Trump has made in recent weeks. Has he been tweeting out that the Fed needs to do this or that? No. Because he can just order them to do it now. 2nd Edit: Also, notice how the IRS dealine for filing and pay has been delayed, for the first time in history? Because Trump ordered it. The IRS isn't even pursuing collection actions on old taxes owed. The filing deadline is going to get moved again to the end of the year, mark my words. 1. https://www.cnbc.com/2019/07/02/trump-to-nominate-judy-shelton-christopher-waller-to-the-fed.html https://www.cnbc.com/2019/07/02/trump-to-nominate-judy-shelt... 2. https://finance.yahoo.com/news/feds-cure-risks-being-worse-110052807.html https://finance.yahoo.com/news/feds-cure-risks-being-worse-1...
- zaroth 6y ago
  Your Bloomberg link is 404, but here is a copy of the editorial; https://finance.yahoo.com/news/feds-cure-risks-being-worse-110052807.html https://finance.yahoo.com/news/feds-cure-risks-being-worse-1...
  - 6y ago

selectodude 6y ago

The Bank of Japan’s balance sheet is at 110 percent of GDP.

throwanem 6y ago
I was about to make a joke that it looked like they could go about another 69.8%. Now I'm glad I waited. What does that even signify, a federal bank owning >100% of its attached country's GDP? Debt in excess of produced value, i.e., the country being underwater?
- yeldarb 6y ago
  GDP is per year. Analogous to a person making $100k/yr with a $110k mortgage. Edit: Although perhaps not that analogous because is this even technically "debt"?
  - ashtonkem 6y ago
    The analogy has always been strained, since national debt just doesn’t work like personal debt. Also, when you can borrow at sub-inflation rates, there’s rarely an incentive to stop.
    - RobertoG 6y ago
      It's the Bank of Japan who decide the borrowing rates, so, not problem in that regard.
      - eslaught 6y ago
        Ok, but they don't control inflation. At some point, I think it's obvious that printing money becomes counterproductive. But where exactly is that line?
        deleted 6y ago
        [deleted]
        ashtonkem 6y ago
        They don’t control inflation. But all of the warnings about hyperinflation being “right around the corner” have remained hilariously false. So who knows?
        WanderPanda 6y ago
        They only control their inefficiency around an increasing trajectory
        RobertoG 6y ago
        The Bank of Japan, can actually control inflation, because, as we have determined, they control the interest rate. Also, if necessary, the government could raise taxes and run a surplus to diminish inflationary pressures. But those are moot points, because the problem of Japan for the last 20 years has been deflation, not inflation. Despise that, as you can see in the comments here, there are people that still predict inflation in the future.
  - RobertoG 6y ago
    It's not debt, it's only a number that reflect the accumulate of past government deficits. A government is the issuer of the currency, so, nothing to do with the debt of a household or a business.
  - isoskeles 6y ago
    What if we alter that analogy to a person who makes 100k/yr with a 110k mortgage, and next year they make 101k with a 115k mortgage, and next year they make 102k with a 120k mortgage, and so on?
    - freeone3000 6y ago
      Then I think we should rename it from "mortgage" to "student loans". As long as they keep making minimum payments, this is technically fine.
      - isoskeles 6y ago
        Misses the point, but sure, "student loans" is a fair comparison. The name doesn't matter to me, it's all debt. I don't see it as "technically" fine that the rate at which the debt grows consistently exceeds the rate at which the income grows. There comes a point in time in which the principal of the debt is large enough that minimum payments exceed income.
  - erentz 6y ago
    The US government doesn’t make 100% of GDP. GDP is $21 trillion. US government takes in $3.46 trillion.

Fjolsvith 6y ago

Gotta tell you guys that the Fed is going to get restructured. Basically its going to declare bankruptcy and stiff the central banks to whom it is indebted. Trump is looking to nominate Judy Shelton to the Federal Reserve as she is the one who will do the restructuring. [1] How is he able to do this? “The Fed will finance a special purpose vehicle (SPV) for each acronym to conduct these operations. The Treasury, using the Exchange Stabilization Fund, will make an equity investment in each SPV and be in a “first loss” position. What does this mean? In essence, the Treasury, not the Fed, is buying all these securities and backstopping of loans; the Fed is acting as banker and providing financing. The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury. In other words, the federal government is nationalizing large swaths of the financial markets. The Fed is providing the money to do it. BlackRock will be doing the trades. This scheme essentially merges the Fed and Treasury into one organization. So, meet your new Fed chairman, Donald J. Trump.” [2] So what does this mean? The US is going to go to a gold backed currency. The federal debt is going to be wiped out. With no federal debt to pay interest on, personal income taxes are going away. The whole wealth transfer mechanism of the central bank system gets cut off. Edit: Take note of the change Trump has made in recent weeks. Has he been tweeting out that the Fed needs to do this or that? No. Because he can just order them to do it now. 2nd Edit: Also, notice how the IRS dealine for filing and pay has been delayed, for the first time in history? Because Trump ordered it. The IRS isn't even pursuing collection actions on old taxes owed. The filing deadline is going to get moved again to the end of the year, mark my words. 1. https://www.cnbc.com/2019/07/02/trump-to-nominate-judy-shelton-christopher-waller-to-the-fed.html https://www.cnbc.com/2019/07/02/trump-to-nominate-judy-shelt... 2. https://finance.yahoo.com/news/feds-cure-risks-being-worse-110052807.html https://finance.yahoo.com/news/feds-cure-risks-being-worse-1...

zaroth 6y ago
Your Bloomberg link is 404, but here is a copy of the editorial; https://finance.yahoo.com/news/feds-cure-risks-being-worse-110052807.html https://finance.yahoo.com/news/feds-cure-risks-being-worse-1...
- 6y ago