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<blockquote data-quote="vantexan" data-source="post: 5146510" data-attributes="member: 24302"><p>It was doing fairly well after the Bush tax cuts but a number of forces came together to get the big downturn in 2008.&nbsp; Quantitative Easing has been going on since with it going into overdrive in 2020-2021.&nbsp; We&#039;re about to pay for that.&nbsp; There&#039;s too much money floating around and the Fed has two choices: ignore the problem and eventually see hyperinflation, or raise interest rates, which it has announced it will be doing, and crash the markets and even crash the government.&nbsp; Take real estate.&nbsp; Overvalued and mortgages are at very low rates.&nbsp; Raise the rates and people stop buying as payments will be even higher above already very high.&nbsp; That crashes real estate.&nbsp; Take the government.&nbsp; It&#039;s running on short term treasuries.&nbsp; Raise the rates to just 5% and the government will have to spend $1.5 trillion annually to just service the debt.&nbsp; And 5% won&#039;t be enough to tame inflation.&nbsp; Might need 15% or more.&nbsp; Only unlike in the 70&#039;s we have massive debt that isn&#039;t paid for with 30 year Treasury bonds.&nbsp; Do you see where this is going?&nbsp; We have a fiat currency(currency by decree, not backed by anything but a promise).&nbsp; Every fiat currency in history has failed and pretty much every time they failed it was because governments couldn&#039;t resist printing more to pay their debts and keep their citizens happy.&nbsp; Sound familiar?&nbsp; If our currency collapses we&#039;ll lose world reserve currency status and our currency won&#039;t buy nearly as much as before in overseas goods that we&#039;ve come to depend on.&nbsp; Our government has been playing with fire for decades now and it looks to finally be coming to a head.</p></blockquote><p></p>

[QUOTE="vantexan, post: 5146510, member: 24302"] It was doing fairly well after the Bush tax cuts but a number of forces came together to get the big downturn in 2008. Quantitative Easing has been going on since with it going into overdrive in 2020-2021. We're about to pay for that. There's too much money floating around and the Fed has two choices: ignore the problem and eventually see hyperinflation, or raise interest rates, which it has announced it will be doing, and crash the markets and even crash the government. Take real estate. Overvalued and mortgages are at very low rates. Raise the rates and people stop buying as payments will be even higher above already very high. That crashes real estate. Take the government. It's running on short term treasuries. Raise the rates to just 5% and the government will have to spend $1.5 trillion annually to just service the debt. And 5% won't be enough to tame inflation. Might need 15% or more. Only unlike in the 70's we have massive debt that isn't paid for with 30 year Treasury bonds. Do you see where this is going? We have a fiat currency(currency by decree, not backed by anything but a promise). Every fiat currency in history has failed and pretty much every time they failed it was because governments couldn't resist printing more to pay their debts and keep their citizens happy. Sound familiar? If our currency collapses we'll lose world reserve currency status and our currency won't buy nearly as much as before in overseas goods that we've come to depend on. Our government has been playing with fire for decades now and it looks to finally be coming to a head. [/QUOTE]

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