US could run out of cash as soon as Dec. 15, Janet Yellen warns

Abiky

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Quote from: stompix on February 22, 2022, 07:06:41 PM

I'm willing to bet that besides their national currency almost nobody here knows the price of bitcoin in anything other than $, I don't remember anybody cheering that BTC has reached 1 million or 3 million rubles or got passed 200 000 or 300 000 yuans.
No matter what you wish to think is happening, the $ is still king, and not threatened by any other currency, and as long as china sell stuff for those $, and pays its imports in $, there will be no de-dollarization.

That's because the US Dollar is still the reserve currency of the world. Not to mention, people aren't using Bitcoin as a "unit of account". Things would've been different if everything was valued in terms of Bitcoin instead of Fiat. In a "hyperbitcoinized" world, you would measure the value of goods and services in terms of "satoshis" instead of US Dollars or any other national currency. It sounds crazy but not far from becoming a reality soon.

There's only one way "hyperbitcoinization" will happen and that is if the current banking system collapses in its entirety. As soon as the USD and other Fiat currencies collapse, Bitcoin and other cryptocurrencies will take over the global economy. USD's inflation rate keeps rising, so it should only be a matter of time before people start losing faith in it. Just my thoughts Grin

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Quote from: Sithara007 on February 18, 2022, 09:53:39 PM

And it will get worse, given the rising oil prices and tensions along the Russia-Ukraine border. Only fools would store their money in USD right now.

Yeah right..
Russian banks imported $5 billion in foreign cash in December

Quote from: Abiky on February 22, 2022, 01:27:18 PM

Sadly, the US national debt keeps increasing like there's no tomorrow. Sooner or later, the USD will lose its status as the reserve currency of the world.

I'm willing to bet that besides their national currency almost nobody here knows the price of bitcoin in anything other than $, I don't remember anybody cheering that BTC has reached 1 million or 3 million rubles or got passed 200 000 or 300 000 yuans.
No matter what you wish to think is happening, the $ is still king, and not threatened by any other currency, and as long as china sell stuff for those $, and pays its imports in $, there will be no de-dollarization.

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Quote from: Hydrogen on November 17, 2021, 06:08:24 PM

More at source. I trimmed the article down to its most relevant parts.

It appears that a US federal government default is on the table. An event which has reached mythical proportions over the past century. Every year for the past 50+ years people warn the government could default and social security will collapse. This negative sentiment has become so common and widespread that over time americans have come to believe it can never happen. "Social security will fail." Oh but people have been saying it will fail for 50 years and it hasn't. This means social security can never fail.

As time passes and debt grows, our options and safety net for resolving these issues in a positive way, shrink.

If anyone has bright ideas for how these issues might be resolved. Now would be a good time to voice them.

A jump start on what could develop into a full blown crisis might also be a good policy.

This crisis seems to come around like clockwork every 2-4 years and it really is a bit ridiculous. Covid made things tough but both parties have contributed to the overall borrowing figure so it should never be reduced to petty politics in order to raise it. Unless both parties start to commit to having a budget surplus, then the default path should be to raise it without pushing the government and connected services to the brink each time. The fact is that if America ever "ran out of money" it would be a self inflicted wound by one of the two main political parties and for no other reason. The central bank is able to print more money any time they choose and as the reserve currency of the world it'll be easily absorbed.

Abiky

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Quote from: Sithara007 on February 18, 2022, 09:53:39 PM

LOL.. if anyone want to check the US federal debt in real time, then go to this website: https://www.usdebtclock.org/

For those who are unware, the federal debt has crossed $30 trillion, thanks to people like Janet Yellen and Ben Bernanke. And I would blame both the Trump and the Biden regimes for this spike in debt. When Trump took office, the debt stood at $20 trillion, and it was measured at $26.9 trillion when he left office. And Biden managed to add $3 trillion to it in just around one year. And it will get worse, given the rising oil prices and tensions along the Russia-Ukraine border. Only fools would store their money in USD right now.

Sadly, the US national debt keeps increasing like there's no tomorrow. Sooner or later, the USD will lose its status as the reserve currency of the world. The FED will simply print more money in order to help "solve" the situation. But at the end of the day, this will affect the pockets of everyday people (especially those in the middle-class). Those who're smart would simply invest into Gold and/or Bitcoin in order to retain purchasing power over time.

Just like you've said, things will get worse with the rising tensions along the Russia-Ukraine border. The cost of living for Americans will be so high, that people will be forced to emigrate from the country. I just hope the USD will recover back to its former glory after the end of the COVID-19 pandemic. There's lot of uncertainty right now, so we should be prepared for the worst. Just my opinion

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Quote from: oHnK on February 14, 2022, 10:46:30 AM

Quote from: DrBeer on February 12, 2022, 01:13:45 PM

Yes, I remember this thread! Well, tell me how "the US ran out of cash"?

Has the dollar already collapsed? Is the US economy bankrupt? Yuan has become the world's international settlement currency? Not ? Oh - why so? Yeah, I understand - now the national debt will grow to $ 35 billion, and then "everything will definitely collapse in the USA"! But you will be surprised - NOTHING will happen. You just need to read less science fiction propagandists

sometimes reading propaganda theories as you convey as shown in a collection of facts that are deliberately hidden by many people and when believing them like strangers in the midst of mistakes in society. The current economic system is just waiting for time to collapse and can't take it anymore, in the end the fiat system will change to another new system such as the gold system being replaced.

For about 30 years I have been watching the hysterical cries of all the "fighters against capitalism", like "here they will destroy the USA, the dollar and capitalism." During this time, the USSR, the Warsaw Pact collapsed, all the builders of "bright socialism" have also either rotted or changed the vector of development to the norms of the normal world. In order for one system to be really replaced by another, this requires the consent of those who manage this process. Now the blood of the world economy is the dollar. And the whole world is absolutely satisfied with this, well, except for a couple of fighters for a "bright future" like Maduro, Putin, North Korean Kim Jong-un

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LOL.. if anyone want to check the US federal debt in real time, then go to this website: https://www.usdebtclock.org/

For those who are unware, the federal debt has crossed $30 trillion, thanks to people like Janet Yellen and Ben Bernanke. And I would blame both the Trump and the Biden regimes for this spike in debt. When Trump took office, the debt stood at $20 trillion, and it was measured at $26.9 trillion when he left office. And Biden managed to add $3 trillion to it in just around one year. And it will get worse, given the rising oil prices and tensions along the Russia-Ukraine border. Only fools would store their money in USD right now.

Abiky

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Quote from: Mometaskers on February 17, 2022, 10:47:25 AM

The government running out of money? Impossible! Just print more! Grin

I imagine they'll do some manipulation to "solve" this if they don't outright let the printers go brrr again. Or they just might let that inflation skyrocket and then resolve it by creating a new currency, similarly to how Brazil's Real came to be. Perfect time to launch a digital fiat, I would say.

Exactly. The government will never run out of money as long as it controls its supply. It's just as easy as "pushing the button" to print more bills and put them in circulation. If there's too much inflation, the central bank can simply create a new currency from the ground up. Just like you said, this might be the perfect time to launch digital Fiat. Only the debasement of existing Fiat currencies will lead us towards a cashless society faster than we could've ever imagined.

With the US Dollar still positioning itself as the reserve currency of the world, it's unlikely the American economy will collapse in its entirety anytime soon. Just my thoughts Grin

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The government running out of money? Impossible! Just print more! Grin

I imagine they'll do some manipulation to "solve" this if they don't outright let the printers go brrr again. Or they just might let that inflation skyrocket and then resolve it by creating a new currency, similarly to how Brazil's Real came to be. Perfect time to launch a digital fiat, I would say.

Abiky

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Quote from: Haunebu on February 14, 2022, 11:15:46 AM

FIAT collapsing completely? I don't think so. This isn't the first time that FIAT currencies like the dollar have faced these kind of issues and they have successfully endured no matter what which will most likely never change.

BTC becoming the standard payment method is just wishful thinking. It will continue to co-exist with FIAT currencies and won't completely replace them in my opinion.

Good point. After all, Fiat is strongly manipulated by governments and central banks. In the case of the US Dollar, the FED can simply print more money to "solve" the problem. Inflation will rise, but that's something inevitable. For Fiat to truly disappear (or collapse), banks need to fail altogether. But again, that's very unlikely to happen because of the reasons mentioned previously. With talks about launching a "digital dollar", it seems to me that America's currency won't be going anywhere soon.

At least, there's an alternative financial system which empowers people to be their own bank. If we didn't had Bitcoin in the first place, we would've been "stuck" with centralized Fiat. Hopefully, the US economy will recover after the end of the COVID-19 pandemic. Just my thoughts Grin

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Quote from: Abiky on February 14, 2022, 07:45:59 AM

If Fiat collapses in its entirety, then we might be headed back to the Gold standard. Or maybe Bitcoin will take over the world as the standard unit of account? We'll see what'll happen with the US and the global economy as the pandemic continues to take the world by storm. Just my opinion

FIAT collapsing completely? I don't think so. This isn't the first time that FIAT currencies like the dollar have faced these kind of issues and they have successfully endured no matter what which will most likely never change.

BTC becoming the standard payment method is just wishful thinking. It will continue to co-exist with FIAT currencies and won't completely replace them in my opinion.

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Quote from: DrBeer on February 12, 2022, 01:13:45 PM

Yes, I remember this thread! Well, tell me how "the US ran out of cash"?

Has the dollar already collapsed? Is the US economy bankrupt? Yuan has become the world's international settlement currency? Not ? Oh - why so? Yeah, I understand - now the national debt will grow to $ 35 billion, and then "everything will definitely collapse in the USA"! But you will be surprised - NOTHING will happen. You just need to read less science fiction propagandists

sometimes reading propaganda theories as you convey as shown in a collection of facts that are deliberately hidden by many people and when believing them like strangers in the midst of mistakes in society. The current economic system is just waiting for time to collapse and can't take it anymore, in the end the fiat system will change to another new system such as the gold system being replaced.

Abiky

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Quote from: STT on February 12, 2022, 05:09:09 PM

Its real that the debts outweigh the available assets, only by issuing a continual stream of new money do the books then balance. It doesnt have to collapse but its precarious to have constant deficits both fiscally and also trade deficits ongoing for years into decades. Every citizen of the USA now owes over 70k towards the national debt if all debts were called in. That isnt possible normally as some of these bonds are not due for 20 years but still its not fantasy situation but a reality and the end result is continual dollar devaluation.

The national debt may be rising, but the US can simply print more money to "solve" the problem. This will lead us to greater inflation rates, which translates to the devaluation of the US Dollar. The higher the debt grows, the faster the world's reserve currency will plummet. I wouldn't worry too much about this since we already got Bitcoin. People who want to protect themselves from the negative effects of inflation will simply resort to deflationary assets like Bitcoin and Gold. It's as simple as that.

If Fiat collapses in its entirety, then we might be headed back to the Gold standard. Or maybe Bitcoin will take over the world as the standard unit of account? We'll see what'll happen with the US and the global economy as the pandemic continues to take the world by storm. Just my opinion

STT

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Its real that the debts outweigh the available assets, only by issuing a continual stream of new money do the books then balance. It doesnt have to collapse but its precarious to have constant deficits both fiscally and also trade deficits ongoing for years into decades. Every citizen of the USA now owes over 70k towards the national debt if all debts were called in. That isnt possible normally as some of these bonds are not due for 20 years but still its not fantasy situation but a reality and the end result is continual dollar devaluation.

DrBeer

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Yes, I remember this thread! Well, tell me how "the US ran out of cash"?

Has the dollar already collapsed? Is the US economy bankrupt? Yuan has become the world's international settlement currency? Not ? Oh - why so? Yeah, I understand - now the national debt will grow to $ 35 billion, and then "everything will definitely collapse in the USA"! But you will be surprised - NOTHING will happen. You just need to read less science fiction propagandists

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I guess the US president will not allow such thing to happen to their citizens economy than to do everything possible to eliminate inflation,bad economy and make cash surplus to the people. President will not accommodate corruption that will make his country to run out of cash than to print more money that will sustain the country economy like 20 years before another government will take over the government and to make sure the economy do not collapse for his hands.

US president has done so much to their economy which they will never experience economy crisis or cash crisis in the country. US Centra bank is well ready to print any amount of money the president will instruct them to print more cash that will make inflation not to near their country.

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Quote from: Abiky on February 09, 2022, 08:02:06 AM

$30T in national debt is a lot of money. I think COVID has terribly damaged the US economy where there would be no point for recovery. If this keeps up, then the US will go bankrupt taking the global economy down with it. After all, the US Dollar is the world's reserve currency. There's only one solution to this problem. And that is Bitcoin. If people start saving money in Bitcoin, their wealth/purchasing power would be unaffected by the USD's ever-rising inflation rates. Governments can benefit from Bitcoin's deflationary abilities, if they adopt it as legal tender. El Salvador already did the move, what makes you think other countries won't do the same? With Fiat collapsing, there could be a strong reason to switch to Bitcoin altogether.

We'll see how everything will turn out to be in the future as the American economy goes on the brink of collapse. Just my opinion

It's not that worrying for them though, they've been in a lot of housing crisis before so I really don't know if they're experiencing something bad, to be honest I think that they will eventually recover from this even without paying those debts because I feel like they care more about letting the debt stay because those who lend those money probably cares more about the favor rather than the getting the money back.

Abiky

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Quote from: Marvell1 on February 07, 2022, 12:35:57 PM

Read this: https://www.voanews.com/a/us-national-debt-tops-30-trillion-for-first-time-in-history-/6424498.html

According to this source US national debt tops 30 trillion for the first time in history!

For the first time since World War II in 1946, the United States was indebted to such a large amount. Which is a matter of considerable concern.

So, still you think the news is unnecessarily alarmist. You should read the whole news from this source before you think so.

The government can run out of money because of the debt of such a large amount. And printing more money would not be able to save them.
Prior to the outbreak of the corona virus, the country was already in debt and the COVID spread and the economy began to collapse in a lockdown.
And that's why so many people in the United States are out of work. And the United States has to borrow more to cover the deficit.
According to the US Department of Revenue, from January 2021 to January 2022, government debt increased to $7 trillion.

In this regard, Janet Yellen's statement seems to be correct.

$30T in national debt is a lot of money. I think COVID has terribly damaged the US economy where there would be no point for recovery. If this keeps up, then the US will go bankrupt taking the global economy down with it. After all, the US Dollar is the world's reserve currency. There's only one solution to this problem. And that is Bitcoin. If people start saving money in Bitcoin, their wealth/purchasing power would be unaffected by the USD's ever-rising inflation rates. Governments can benefit from Bitcoin's deflationary abilities, if they adopt it as legal tender. El Salvador already did the move, what makes you think other countries won't do the same? With Fiat collapsing, there could be a strong reason to switch to Bitcoin altogether.

We'll see how everything will turn out to be in the future as the American economy goes on the brink of collapse. Just my opinion

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Quote from: goldkingcoiner on November 18, 2021, 07:08:26 AM

I think this news is a bit unnecessarily alarmist. Whenever the US government starts facing a cash crises they always find a way to pawn off the debt in complicated ways. I think they will just print more money, therefore dropping the value of the USD via inflation and the ones who will have to foot the bill will be the citizens of the US. That way the dollar amount debt they owe stays the same but loses value at the same time.

And bread and milk at the supermarket rises in price, the unemployment rate up down because the companies can't handle the inflation without firing people and now you have more people on the streets.

Read this: https://www.voanews.com/a/us-national-debt-tops-30-trillion-for-first-time-in-history-/6424498.html

According to this source US national debt tops 30 trillion for the first time in history!

For the first time since World War II in 1946, the United States was indebted to such a large amount. Which is a matter of considerable concern.

So, still you think the news is unnecessarily alarmist. You should read the whole news from this source before you think so.

The government can run out of money because of the debt of such a large amount. And printing more money would not be able to save them.
Prior to the outbreak of the corona virus, the country was already in debt and the COVID spread and the economy began to collapse in a lockdown.
And that's why so many people in the United States are out of work. And the United States has to borrow more to cover the deficit.
According to the US Department of Revenue, from January 2021 to January 2022, government debt increased to $7 trillion.

In this regard, Janet Yellen's statement seems to be correct.

Ozero

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December 15 is long gone, but we don't see anything negatively impacting the US finances and economy. They used to close financial problems by printing new dollars. Of course, this cannot continue indefinitely. In this case, the states will gradually abandon the dollar, and the reasons for this may be different. Russia is now doing this to evade international sanctions. The news is that the dollar is really falling and it is better to invest in the British pound, Japanese yen and Swiss franc. The Euro does not seem to be much quoted either.

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Quote from: Gyfts on December 18, 2021, 05:07:31 PM

Quote from: Sithara007 on December 04, 2021, 10:37:21 PM

Not surprised. US penalizes wealth creators by imposing more and more taxes (now there is an insane proposals to tax capital gains up to 60%), and encourages those who are unproductive. China on the other hand prioritizes wealth creation and clamps down on social parasites and welfare rats. The results are out there for everyone to see. Wealth creators are moving out of the US, and opening their factories elsewhere. Obamacare and rising minimum wages have made opening businesses and factories in the US unsustainable.

The US can't keep up their taxes on the wealthy with their spending habits, despite the harsh rhetoric of wealth taxes or ensuring the rich pay their fair share. Most of it is political pandering, as are many other things related to demonizing the rich, but on a deeper level politicians are aware that if they keep driving up the effective tax rate, it'll slow down growth. The strategy for the US, I'm assuming, has been growing the economy in order to raise enough revenue to pay off the debt. Their reckless spending has not slowed down, and Covid has slowed the economy, so all this has thrown a wrench in their plans. Expect a wealth tax to be passed sooner rather than later.

Personally I believe that wealth tax is a regressive idea. The democrats are debating about it, because they believe that it will make the billionaires pay more taxes than they are doing right now. It was Ron Wyden (D-Oregon), who first proposed to tax unrealized capital gains, claiming that the uber-rich hardly ever sell their assets and that makes it extremely difficult to tax them. I don't support this move as well, but for me at least on paper taxing the unrealized capital gains sounds more viable than imposing a wealth tax.

Topic: US could run out of cash as soon as Dec. 15, Janet Yellen warns (Read 601 times)