On US Debt Spiral 🧨💥ðŸ˜
What Is Consumer Credit ?
Consumer credit is personal debt taken on to purchase goods and services. A credit card is one form of consumer credit.
Although any type of personal loan could be labeled consumer credit, the term is more often used to describe unsecured debt that is taken on to buy everyday goods and services. However, consumer debt can also include collateralized consumer loans like mortgage and car loans.
The introduction and widespread use of credit cards increases trading efficiency but, by also increasing the velocity of money, it causes inflation. 🔥
What is the debt spiral ?
A debt spiral is when you continue to fall deeper and deeper into debt, despite staying current on your payments.
It can happen when you have high-interest debt, or if you suddenly need to take on more debt or lose your your income. 🔥
Why is the US in so much debt ?
Large tax cuts passed by Congress during the presidencies of George W. Bush and Donald Trump have played a large part in the subsequent deterioration of government finances and the resulting growth in the national debt. 🔥
Where are we in the debt cycle ?
By raising and lowering supplies of money and credit, central banks are able to raise and lower the demand and production of financial assets, goods, and services. But they're unable to do this perfectly, so we have the short-term debt cycle, which we experience as alternating periods of growth and recession. 🔥
Who owns most of U.S. debt ?
The public holds over $22 trillion of the national debt. 3 Foreign governments hold a large portion of the public debt (Japan and Mainland China held the greatest portions), while the rest is owned by U.S. banks and investors, the Federal Reserve, state and local governments, mutual funds, pensions funds, insurance companies, and holders of savings bonds. 🔥
At the end of July 2021, 53% of federal debt was owned by investors from the United States, including the Federal Reserve. The various trust funds operated by the United States government, like the Social Security and Medicare trust fund accounts, held another 22% of federal debt. 🔥
Headlines:
Jan 11, 2018: Fears That China Will Abandon The Dollar Are Greatly Exaggerated (Forbes). 😂
Mar 30, 2021: What Happens if China Abandons US Dollar Assets ?
Apr 12, 2022: Changing the Top Global Currency Means Changing the Patterns of Global Trade.
Mar 13, 2022: Is the Dollar in Danger ?
Mar 29, 2022: Analysis: As sanctions 'weaponize' U.S. dollar, some Treasury buyers could fall back.
Jun 24, 2022: Russia and China are brewing up a challenge to dollar dominance by creating a new reserve currency.
Comment:
We had already warned and the FOOLS thought it was a joke, we noticed that the time variable lengthens as governments try to cover the sun with a finger, so we organized the long-term model, fun things will come until 2040 'NoWhere '.
Jul 18, 2022: Don’t Spend Your Crypto With A Coinbase Debit Card.
Aug 8, 2022: BlackRock and Coinbase Deal Could Trigger Bitcoin Burst to $773,000, According to InvestAnswers.
When some idiots ban crypto, crypto become exponential. 😂