US debt bubble getting ready to pop

Most of the market has been being driven by massive amounts of debt.



Listen to the end of the video where he talks about the central banks consolidating power through debt consumption. This is absolutely true. They are consolidating assets and power in this country and locking everyone into a system of debt slavery.

Corporate debt

One area of concern is the share of bonds rated BBB now takes up around half of the more than $5 trillion market for investment-grade corporate debt. Arguably, businesses with the most robust balance sheets sport investment-grade credit ratings, but BBB-graded bonds sit only one to three notches above so-called junk, or sub-investment grade, debt.

US household debt rises to $13.3 trillion

NEW YORK (Reuters) - Americans’ borrowing reached $13.29 trillion in the second quarter, up $454 billion from a year ago, marking a 16th consecutive quarter of increases, a New York Federal Reserve report released on Tuesday showed.

Credit card debt surpasses $1 trillion

U.S. consumers’ total credit card debt exceeded $1 trillion for the first time, according to a new study by the personal finance website WalletHub.

Consumers took on an additional $92.2 billion in debt last year, the highest single-year amount since 2007. The average U.S. household owes $8,600 on credit cards, WalletHub found.

Housing inventory increase

“Home buyers may be pleasantly surprised to see more homes on the market, as housing inventory starts to make a comeback after years of decline,”

They are putting a positive spin on this but the fact is people can't afford to keep buying.

Weaker jobs report

The US economy added 155,000 jobs in November, the Labor Department reported Friday. That's fewer than expected, but the unemployment rate remained steady at 3.7%.

The missing ingredient, however, has been wage growth — and that looks like it's beginning to change. Paychecks grew by 3.1% over the last year, a relatively robust number that is in line with expectations as employers have had to fight to attract workers in recent months.

This last number is what we need to be looking at. FINALLY. For the first time since 2008 I have personally seen and heard about people paying better in my local area. There has definitely been an explosion of jobs here. The major issue we face is that we had 10 years of QE and no wage growth until mid 2017.

Now, what happens if the Fed stops raising rates? What happens if the Fed continues on it's path of raising rates?

No worries. Just print more money and give it the banks if they're gonna fail. What difference does it make? /s

Every time a bubble pops it becomes a buying opportunity for people like me. Seriously, you don’t make money off of invest and hold as much as you do volatility and the market adjustments. The only bad day in the market is when it doesn’t move. Up or down doesn’t really matter.

a reply to: booyakasha

that's what's causing the scenario where everyone including corporations have to take on massive amounts of debt in order to survive

the printing of money

a reply to: toysforadults

Good thing I have no debt and have been planing for an economic collapse for years.


See you on the other side. maybe.

a reply to: scraedtosleep

that silver price though

a reply to: Metallicus

I really don't care about anyone's personal finances I want to discuss the system and how it's impacting our country/ culture

I know it's abnormal for anyone in America to care about anything or anyone other than themselves but some of us want to change that

originally posted by: toysforadults
a reply to: scraedtosleep

that silver price though

I don’t see silver as a great investment. It is good for trade in a SHTF scenario, but for the most part metals are a last resort and not a great investment for long term appreciation. I keep silver and gold for emergencies and only about 5% of my overall portfolio.

I will say only own physical silver and gold. If you own a fund it is just BS and you won’t ever see it if you really needed it in a pinch. Some of the gold stocks are good, but again, I prefer physical assets.

a reply to: Metallicus

silver all time high

Early Monday morning, silver prices surged 8% to $49.82 an ounce. That was just shy of the $50.35-an-ounce intraday record hit in January 1980, but higher than the all-time high closing price of $48.70 per ounce set 31 years ago.

this is 2011

QE2

NEW YORK (CNNMoney.com) -- In its latest move to jump start the sluggish recovery, the Federal Reserve announced it will pump billions into the economy.

The central bank will buy $600 billion in long-term Treasuries over the next eight months, the Fed said Wednesday. The Fed also announced it will reinvest an additional $250 billion to $300 billion in Treasuries with the proceeds of its earlier investments.

see what happens is when the Fed drops interest rates people move into precious metals and the amount of money needed to buy the same asset goes up

so you get a 2 fold increase. right now Silver is at $14 when it's been being trade at between 14 and 22 for the last few years

if the bubble pops (when) the Fed will either stop rising rates or drop them back down in which case people will move back into silver and gold increasing demand and the amount of money you need to buy them will go up

a reply to: Metallicus

I guess my strategy would be either Forex trading on a currency decrease or rise (depending on how the other stables markets are doing) or sit in silver and gold, sell on the rise up and then buy into the DOW index as it drops

from my understanding there should be an inverse relationship between the 2 where you can ride the wave and come out WAY ahead on the top

I'm just starting to get into learning the Forex market so I don't have that figured out yet

a reply to: toysforadults

I have never invested in FOREX just because I haven’t been able to figure a reliable way to make money from that investment yet. Before I ever invest I create a play account with about 100k and really learn the investment before I risk real money. I have never been able to come out on top in FOREX like I can in stock options. Part of the reason is that people are more predictable than markets and you usually only get serious investors in the currency market as opposed to the stock market.

You can always count on people to panic and so stupid things and I think we see those effects in the stock market on a larger scale than to do in commodities and currencies.

Anyway, if you can figure out the currency markets then more power to you. I only invest in things I can make consistent money. Stocks have always been the safest way to make consistent money for me.

Meh. All I know is, if Bitcoin comes to 1k again, everyone should be buying that #. And I believe it will, next year. Probably just preceding the stock market going full dump mode. Woooo.

a reply to: scraedtosleep

Same here. I have a total of $250 in credit card debt and can easily pay that off right now if I wanted to. People live above their means and it will bite them in the ass eventually.

a reply to: 3NL1GHT3N3D1

When you say people as a general rule live above their means you have to qualify that with data

Try this one out. How many people have had to take on debt while having no actual lifestyle changes due to inflation?

What you were able to do with x amount of capital ten years ago was not what you can do with x amount of capital today

So what is the actual data that you have to support your idea about what people are spending their money on?

a reply to: Metallicus

I'm not really into options and day trading I have to much to learn with school right now to pay attention to that but if you see something in the news cycle I mean put options are always a good bet such as with Apple

Yes, the drops in September and October we're just the Israeli sell Rosh and buy Attonement......

But that signalled one month or two remaining.....!!!!!!here we are......T_bills flipped just two days ago.....

a reply to: toysforadults

Maybe I should rephrase what I said, what i meant was that there are many people who live above their means and it will eventually bite them in the ass. I didn't mean a broad generalization about all people.

Anyways, all that is gobbledygook to my ears, I don't pay attention to the financial world because I personally don't care for it nor do I need huge amounts of money to be happy.

originally posted by: GBP/JPY
Yes, the drops in September and October we're just the Israeli sell Rosh and buy Attonement......

But that signalled one month or two remaining.....!!!!!!here we are......T_bills flipped just two days ago.....

Yyou're seeing it too right?

1-2 months? That's your guess? Most people dont know so they havent react yet it may take a couple of months to set in

Or bad data on Christmass shopping

a reply to: Metallicus

Oh I just realized the Forex narket probably trades on monetary policy of the central banks

I can imagine forex markets working withba similar relationship to precious metals and the dollar

Probably about the same. Pretty easy actually. These are long term strategies

Were talking doubling and tripling your money on around 5-7 year cycles

Big balls and looootttssss of patience

Obviously the market will crash eventually, that is a certain, but I'm on the fence about an "incoming" crash.

I own a shared ownership property where a housing association owns the other half and I've been receiving lots of offers for me to buy the remaining half of my property off them. The banks are also making it easier to get a mortgage too, with 100% mortgages on the market. These things make me think there is a crash looming or they are trying hard to prevent one.

On the other hand, the Bank of England have recently increased interest rates, which they just wouldn't do if there was a crash incoming. Unless that's part of their plan so they can blame it on Brexit or Trump.