World debt is so high that high interest rates are impossible

[SOL]

Global debt is fast approaching record $300 trillion - IIF

Global debt rose to a new record high of nearly $300 trillion in the second quarter, but the debt-to-GDP ratio declined for the first time since the start of the pandemic as economic growth rebounded, the Institute of International Finance (IIF) said on Tuesday.

Total debt levels, which include government, household and corporate and bank debt, rose $4.8 trillion to $296 trillion at the end of June, after a slight decline in the first quarter, to stand $36 trillion above pre-pandemic levels.

"If the borrowing continues at this pace, we expect global debt to exceed $300 trillion," said Emre Tiftik, IIF's director of sustainability research.

The rise in debt levels was the sharpest among emerging markets, with total debt rising $3.5 trillion in the second quarter from the preceding three months to reach almost $92 trillion.

https://www.reuters.com/business/global ... 021-09-14/

Under no imaginable scenario will the world ever be able to repay this debt. So the only way to manage it is to keep borrowing more and to do so requires low interest rates otherwise the interest payments become unmanageable especially for the developing world and if they start to default it will set off a domino type event where the only safe place will be a cave. Hence, while interest maybe allowed to rise a bit, they will never be allowed to rise by too much. Forever QE is here until an entity that is smarter than dumb humans taken over, AI for now is the only such candidate but there is still at least another 9 years before such an event might come to pass. So central bankers will hold interest rates in a tight band

[AstuteShift]

Likely with the AI super bubble with world debt will be easily be 1 quadrillion or more.

This interest rate increase and inflation is nonsense, the FED and central banks are masters of MP and will continuing weaponizing events to facilitate more debt

[Yodean]

[outof thebox]

Even with the so called rise in short term rates when one factors inflation which is supposely at 7%, yields are negative by over 5 points. So the inflation argement in convention terms is B.S. Rates can't rise beyond a certain point as the interest on the debt will be too high to service. So while rates will rise from time to time, they won't rise by much and then they will fall as low rates are needed to keep this ponzi scheme alive

[SOL]

US debt has hit 30 trillion but penguins try to downplay it

Around $8 trillion of that $30 trillion cited by debt hawks as what the government has borrowed is the equivalent of that: Money that the government owes to itself in the future, says J.W. Mason, an economist professor at CUNY’s John Jay College. For example, the contributions the Social Security Administration puts aside into its Trust Fund to be paid out later get counted as debt.

So in reality, what the the federal government owes is $22 trillion, Mason said.

https://www.msn.com/en-us/money/markets ... ar-AATpHLT

Huh so if the government owes this money to itself as they claim, who will pay for it. where is this money going to come from? Will they pull it off their rears? Double speak at best. It's a debt so it should be counted.

Our target of the US debt reaching 100 trillion which once appeared like SciFi is now looking more attenable. We suspect that when it reaches 100 trillion it will coincide with a mega top.

We live in a new era where brain surgeons think borrowing to pay for crap is fine, but all stupid things must end and when they do, they end with a big bang

[Budge]

US debt has hit 30 trillion but penguins try to downplay it

Around $8 trillion of that $30 trillion cited by debt hawks as what the government has borrowed is the equivalent of that: Money that the government owes to itself in the future, says J.W. Mason, an economist professor at CUNY’s John Jay College. For example, the contributions the Social Security Administration puts aside into its Trust Fund to be paid out later get counted as debt.

So in reality, what the the federal government owes is $22 trillion, Mason said.

https://www.msn.com/en-us/money/markets ... ar-AATpHLT

Huh so if the government owes this money to itself as they claim, who will pay for it. where is this money going to come from? Will they pull it off their rears? Double speak at best. It's a debt so it should be counted.

Our target of the US debt reaching 100 trillion which once appeared like SciFi is now looking more attenable. We suspect that when it reaches 100 trillion it will coincide with a mega top.

We live in a new era where brain surgeons think borrowing to pay for crap is fine, but all stupid things must end and when they do, they end with a big bang

What will be the precipitating Credit-Anstalt event? That the largest Austrian bank going belly up in 1931, was bad enough but the fact that it was a Rothschild bank caused the panic.

[deepthinker]

What will be the precipitating Credit-Anstalt event? That the largest Austrian bank going belly up in 1931, was bad enough but the fact that it was a Rothschild bank caused the panic.

I suspect the big players will do something different. It could be something we are not expecting the Russia Ukraine war escalates and then when that happens maybe China attacks Taiwan, That would certainly be enough to push the markets to SOL's max draw down of 36% and more

[Yodean]

[Budge]

What will be the precipitating Credit-Anstalt event? That the largest Austrian bank going belly up in 1931, was bad enough but the fact that it was a Rothschild bank caused the panic.

I suspect the big players will do something different. It could be something we are not expecting the Russia Ukraine war escalates and then when that happens maybe China attacks Taiwan, That would certainly be enough to push the markets to SOL's max draw down of 36% and more

Biden administration needs a distraction from the mess they've made, and the last resort tends to be opening Pandora's Box "when all else fails, take them to war." They've been poking the Bear for a while hoping Putin will react and make a move on Ukraine. But Zelensky keeps shooting down all the trial balloons they keep putting up. We had the comic/tragic scene of the CNN reporter in the US parroting the "Russian war moves" that was out of the administration while the CNN reporter in Ukraine was contradicting them. Ooops.

Then yesterday, we had the State Dept flunky getting embarrassed by the reporter who challenged the rumor that Russia was preparing a false flag attack in Ukraine. Funny thing was the previous day I heard the rumor that the US was preparing a false flag move in Ukraine to blame on Putin!

Meanwhile, the gibbering quarter-wit keeps making conciliatory statements re Russia/Putin embarrassing his neocons. Perhaps he wants to preserve his 10%.

All said and done, this would be a good time for Russia and China to make their respective moves given US and NATO personify Mao's description of paper tigers. Cave idus mariae - beware the ides of March.

[Yodean]

All said and done, this would be a good time for Russia and China to make their respective moves given US and NATO personify Mao's description of paper tigers.

Short of a false flag type of attack or a military mishap, the CCP is not going to engage in a military takeover of Formosa.

Reasons:

1) President Xi has a lot of domestic problems currently. Too much on his plate.

2) Olympics - the CCP care a lot about "face"; it's time for President Xi to show how great China is on the world stage, whether true or not; attacking Formosa now would go against the "Modern China is amazing" image;

3) National People's Congress - it's political theatre, really, but it's when the CCP formally meets and political leaders get appointed, etc.; I think it's happening this year; once again, the CCP does not want chaos when this show is occurring, so Formosa is safe;

4) Related to the above, President Xi will want to keep the Chinese markets afloat, so Chinese assets should have a good year.

******

Ukraine:

1) Putin is smarter than all the Western leaders combined, even if you remove the current POTUS from the equation. Vlad knows the DeepState is itching for a fight, to distract the Western Sheeple from their financial and social problems, including the Coward-19 plandemic. So while anything may happen, and there will be plenty of rhetoric, troop movements, and political posturing, NATO will have to eat some crow and stand down.

Putin may also simply threaten to turn off the gas.