Without debt, the US would explode!

[Ahmed]

Your example of the road network is very good because it brings into light the contradictions that exist in all areas and lead to increase regulations and interventions in directions divergent, some sensible remedy the shortcomings of others ... but by bringing new...

Debt is a "mechanical means of obtaining economic activity: it is therefore an extremely powerful tool. We must not then accuse it of all the evils.", You say.
Absolutely! This result is obtained by traditional investment in a profitable activity or to alleviate (and this is what has been new since the 70s) the depression of the real economy, by providing the liquidity allowing to act "as if".
These debts generate interest, which is themselves financed by the debt or / and the levy on citizens in the name of "austerity" supposed to be the necessary passage to prosperity (since we tell you!).
So, debt is objectively an important part of the survival of the system.

In your last post, you set out the three pillars of intangible extractivism, which is not opposed to it as the creation of money. Understand that the economy is complex and if everything depended on money creation, everything would collapse immediately, simply because the system would be more credible and that the belief that a fictitious value can s' exchange against a real value that is deus ex machina.
This is why financial artifices must necessarily be backed by concrete economic aspects, be they possibly mafia.
This condition is always more difficult to fill, leading to the financial industry turn increasingly on itself, causing the indignation of a large shadow people, yet proponents of what is the cause .. .

[moinsdewatt]

Ten years after Lehman Brothers, US household debt explodes

By Hayat Gazzane Posted on 15 / 09 / 2018

The indebtedness of households across the Atlantic exceeds 13.000 billion and continues to swell, driven by a strong economy. But a decade after the subprime crisis, some observers are worried.


Ten years ago, the subprime mortgage bubble burst, culminating in the bankruptcy of New York-based Lehman Brothers, precipitating the global economy into one of the worst financial crises in its history. Since then, the appetite of American households for credit has not diminished, quite the opposite. According to a recent report from the New York Fed, total household debt across the Atlantic rose by 82 billion in the second quarter to reach 13.290 billion. A level that is above the previous 12.680 billion dollar peak recorded ... in the third quarter 2008. This situation, which seems logical in view of the American mode of consumption and the vigor of the economy on the other side of the Atlantic, worries certain observers who see bubbles forming that could explode. Explanations.
........

http://www.lefigaro.fr/conjoncture/2018 ... xplose.php



Real estate debt: 9000 billion dollars.

1240 car loan debt billion.

Debt loan 1410 students billions of dollars.

Credit card debt 829 billion.

[moinsdewatt]

The United States still more indebted

By Le Figaro.fr with AFP Updated the 03 / 11 / 2018

Donald Trump's boiling economic growth also comes at a cost: Federal government borrowing for financing has never been so massive since the recession.

The US Treasury disclosed this week a record debt issue volume for the last quarter of 2018: 425 billion.

This is a total of 1.338 billion dollars of funds that will be raised over a year, a peak since 2010.

Economic orthodoxy demands repayment of debt when the economy is doing well - in the case of the United States it is running at full speed - but the Trump administration borrows as much as Barack Obama's when it comes to tearing the country has the worst recession since the 30 years.

The president has drastically cut taxes especially for business and increased spending (especially defense) which is widening the budget deficit.

It has swelled 17% for the fiscal year ended in September to 779 billion. It will be around 1.000 billion next year.

The total amount of the State's debt now equals that of the Gross National Product of the world's largest economy, to more than 20.000 billion.

At a Wednesday meeting of the Advisory Committee on Borrowing Operations, the Treasury explained that while income tax receipts had increased in the ministry's coffers as a result of economic growth, those gains had "largely been wiped out by a fall in revenues from businesses ".

The corporate tax collected by the State has increased from 297 billion in 2017 to 205 billion in 2018 (-31%). At the same time, total budget spending has increased from 5% to 4.198 billion

http://www.lefigaro.fr/flash-eco/2018/1 ... dettes.php

[Ahmed]

The causes of state indebtedness have been clearly explained, and those of individuals are quite simple to understand. Indeed, the US has chosen full employment, but with low wages (shit jobs) for a growing share of the population: with incomes barely enough to live on a daily basis, the least unforeseen expenditure can not be made without use credit. Credit whose repayment will be difficult to honor, since monthly payments come down this family budget already structurally precarious balance. This is basically the situation that led to the 2008 crisis ...

[moinsdewatt]

Who buys the US Treasury?

The 24 Avr 2019

During the 12 months leading up to February 2019, US debt swelled from 1,26 trillion dollars to reach 22,1 trillions. Someone had to buy these bonds, who is it? This question is becoming increasingly crucial as debt explodes even when the economy is doing well, because of deficits that Powell says are unsustainable when asked.

Today, ICT data from the US Treasury provides the answer to this question.



The US government's debt, which has cost record interest of 523 billion dollars in fiscal year 2018, represents an asset for investors, US creditors. The country needs them to finance its huge deficits.

Foreign creditors of the United States
China, the largest foreign creditor in the United States, sold 46 billion bonds during this one-year period, according to the statistics. But during these last 3 months, China has gone on the purchase. At the end of February, its US bond portfolio had a value of 1,13 trillion dollars (against 1,25 trillion in February 2016, the historical record).

Japan, the second largest creditor in the United States, bought 13 billion bonds during this one-year period. Tokyo has a total of 1,07 trillion US Treasuries (record: 1,24 trillion, late 2014).

https://www.businessbourse.com/2019/04/ ... americain/

their 22 000 billion debt to compare with their 2018 20 494 GDP billion

https://fr.wikipedia.org/wiki/Liste_des ... IB_nominal