Debt Aggravated By Covid-19 To Weigh Us Down Slaves To It For Very Long

[Economy 52,842]

https://www.bnnbloomberg.ca/larry-berman-what-do-yield-curve-control-and-stagflation-mean-for-your-retirement-1.1423111

 

The debt to GDP is already more than 100% of annual output in so many Nations in the government alone and globally stands at 370% of GDP when counting private debt as well

 

Governments which do not have the money to spend on relief efforts are relying on Central Banks printing a lot of money to buy Government debt to keep yields down as much as possible

 

Interest rates which have gradually been falling over the long term since 1980s have hit rock bottom in 2008 and we have been slaves to it ever since

 

The world is so saturated with debt and will be even more so after 2008 that it will likely be a weight holding us down for the foreseeable future

 

After WWII governments were in a simmilar predicament of very high debt levels and reliance on Central Banks to help monetize debt. However back then economic growth was much higher given young population entering work-force. Now with slow economic growth and ageing population, the economy cannot outgrow the debt as easily without paying it back as we did in 1940s and 1950s

 

[Economy 52,842]

BUt DefIcitS DoNt MaTTeR!!!!!!

 

 

 

Legit during better economic times Governments should try harder to get finances in order but never do enough to offset debt accumulated during bad times... Then this is what we get

 

[Economy 52,842]

Low rates discourage savings, debt repayment and keep zombie companies that use up labor alive longer and also hurt growth of things like peoples retirement funds that invest in things like bonds

 

Rates being chronically low also means u can't lower them almost anything everytime economy takes a dip and needs a boost

 

Low rates for long also help blow asset prices such as realestate making prices higher... people get in high debt cuz if high mortgages than they cannot afford higher rates because the principal is so high

 

In case anyone is curious about some of the effects of rates staying so close to 0% consistently

 

 

[Maleficent 6]

9 minutes ago, Economy said:

ageing population

if only there was a virus out there to solve this problem....

Spoiler

it’s a joke guys calm down  

 

[Economy 52,842]

9 minutes ago, Maleficent said:

if only there was a virus out there to solve this problem....

  Hide contents

it’s a joke guys calm down  

 

Not the nicest joke to make tho

 

1. It's called raising retirement age slightly (which some Countries already did Including the US and much of Europe)

 

2. making the rich pay their fair share

 

3. Countries like the US stop blowing all their money on military

 

Suddenly the finances look so much better despite ageing population

 

[Stephen 30,433]

I'm BEGGING you to put less space between your paragraphs 

Just skip one line not 4 or 10 

[Economy 52,842]

1 minute ago, Stephen said:

I'm BEGGING you to put less space between your paragraphs 

Just skip one line not 4 or 10 

Sorry but I have to put each thought into a different space.

 

It hurts my OCD and gives me anxiety if I don't

 

[whore 11,447]

I love you @Economy but the spaces in your comments are triggering 

OT: This is exactly what I expected to happen after those stimulus checks were distributed 

[Economy 52,842]

2 minutes ago, Loeppke said:

I love you @Economy but the spaces in your comments are triggering 

OT: This is exactly what I expected to happen after those stimulus checks were distributed 

Sorry

 

Also if the economy survives Covid-19 and we recover... I hope to god Governments and ppl start taking the need for financial prudence more seriously without the "deficits don't matter" attitude and try to turn that around

 

Yeah we been able to handle larger and larger debt loads both privately and in the Government. But that's largely due to the fact that rates have been getting lower and lower over the long term for decades (with short term ups and downs obviously).

 

They are already near 0. U can't really go much lower from here. No more free rides

 

 

[Bt1 5,213]

I think the population was in the process of understanding the full impact of the measures. I'm not sure what will happen now that this situation has gone political. 

I will never look at the media the same again. 

[Economy 52,842]

1 minute ago, Florin said:

I think the population was in the process of understanding the full impact of the measures. I'm not sure what will happen now that this situation has gone political. 

I will never look at the media the same again. 

U can always count Everything to turn political and common sense to go out the window

 

I knew unity among politicians and parties was gonna be short-lived.

[whore 11,447]

11 minutes ago, mauvais said:

Debt isn't real. Money printer go brrr.

This comment has the same energy as this 

 

[Itsbrenda 2,983]

I have tried to read the thread title so many times 

 

‘Debt Aggravated By Covid-19 To Weigh Us Down Slaves To It For Very Long’

[Economy 52,842]

32 minutes ago, mauvais said:

Debt isn't real. Money printer go brrr.

It is real. It represents money from one person or institution that they gave to someone else that has to be paid back

 

If I earn $30 and loan it to someone else I transfered some of my purchasing I could have used for myself that someone else now has instead... And it's supposed to get paid back

 

Debt is our way of keeping track of what was transfered to someone else. It is real. U may not physically see it unless u look at numbers but it's real

[Economy 52,842]

14 minutes ago, LadyHaha said:

I have tried to read the thread title so many times 

 

‘Debt Aggravated By Covid-19 To Weigh Us Down Slaves To It For Very Long’

I had to condense it. I meant to write "Debt Aggravated by Covid-19 To Weigh Us Down as slaves to it for the foreseeable future" or something along those lines I tried to write

 

But forum character limits on title sometimes force u write something not that descriptive