America is ‘going broke slowly’ says J.P. Morgan, as national debt balloons and tariff revenue looks shaky
America is ‘going broke slowly’ says J.P. Morgan, as national debt balloons and tariff revenue looks shaky
Just like all his businesses. Bankrupt.
And just like his other businesses, he's pawning the furniture for his own wallet while it all crashes.
What the fuck else are we supposed to do when wages are completely stagnant and everything is getting more expensive by the day?
spend everything on protection without starving.
When you expect bank runs and inflation you don't save money you spend it on assets or survival and debt becomes meaningless.
Being broke, hungry, sick, and unemployed is good for the economy! 🫲🍊🫱
Actually yes. You being broke, hungry, sick and unemployed is good for the top one percent's economy.
Not for long...
america is already broke, the USD is hyper-inflated on fake proof-of-work and extraction infrastructure and a foundry they're about to lose access to
they're in that sad part of the con where the money is already gone but as long as appearances suggest the money is still there, the marks think they're getting rich
its going to be pretty funny i think, i mean i'll probably be dead of whatever famine, but the concept is funny
The gap between the amount of money the mark thinks they have and the amount of extant money is called "the bezzle".
We've spent decades bleeding the middle and lower classes dry.
People get all up in arms about private equity groups buying up companies, extracting any value, saddling them with debt, and then skipping out, and understandably so, but that's exactly what's happening with the USA. It's just at a larger scale. The principle remains the same.
Don't worry, now's the time it'll finally all trickle down! /s
Hmmm I love getting trickled on by the super rich.
The US government is in a significant amount of debt which is constantly growing and will never be paid back. We needed to raise taxes on the wealthy and corporations, but we never did. We needed the banks to fail in 2008, but they stole our tax money. We needed a strong economic correction during a global pandemic, but instead they printed a fuck ton of money.
don't let the Republicans off the hook like that. It wasn't "they", it was literally the guy we have right now, and all the same cronies, they just had different faces.
Top comment right here.
and You JP MORGAN helped him.
As it is a great investment opportunity for them.
The economy will be fine until it isn't. Get ready for when it isn't. THIS is the warning.
You all know it's Bidens fault /s
But but mr orange rapist was supposed to run the government like a business and reduce the debt.
Mr President is amazing at running businesses, assuming that governments can even be run like businesses.
I have been mentioning awhile about the record month to month deficits and he just spends more and more on ice and the military.
Yes, we're all spiraling into hell. And you're coming with us. So stfu and give us those Epstein files
Slowly? Isn't just the interest payment on the debt like $1 trillion a year now?
That interest was totally manageable when America was the largest economy in the world and looking to stay that way. It's the whole deliberately burning down the economy that's the real issue
Wow, just like all these people 'going broke slowly'!
How much you want to get he's going to take the money, probably through crypto.
This shit has been broken for a long time now.
But... but... the're making so much money from tariffs!!
Trump ain't going broke quickly, he's adding to his gilt while lacking any guilt.
How is this news?
It's been this way for years.
The news is that they are advising people to pull out. Keep in mind up til now this firm was telling people the us was a fine place to park your money.
Oooh no, they focus on the actual problem! Look at that! Too late tho.
\
Had to watch this video couple months ago about the debt.
https://www.youtube.com/watch?v=PQOmqA5zgds
Gee, I wonder why tariff revenue looks shaky. Well, I mean, there's the fact that tariffs don't generate revenue and never have. There is no account with tariff money accumulating in them. The money exacted for tariffs leaves circulation is entirely, it's basically destroyed.
Well tariffs are import tax. Imports are driven by consumption and consumption doesn't go up in response to heavy new taxes.
That depends a bit on the type of consumption. Foreign versus domestic. The problem being that capitalists hollowed out all manufacturing in the United States. And so now most of the consumption is from foreign sources. There are no domestic sources, and therefore it is simply a flat price increase.
I don't support the tariffs, but that's not really true. Tariffs are basically taxes. They go to the government. Presumably they would then be redistributed through government programs. You can say what you will about how effective those programs are, but the money does not just disappear and is certainly not destroyed.
Tariffs only go to the government when people can actually afford to pay them.
When Tariffs jack up the costs of goods in a supply chain exponentially higher than they've even been, small to medium sized business can't afford their now Tariffed supply chain and don't pay.
That's how the money disappears. Whatever industry Tariffs are added to is now an industry that small to mid size companies can no longer afford to manufacture in. Which lowers the total value of that market as the profits smaller businesses had are now captured and destroyed by Tariffs.
Without Tariffs, the supply chain is affordable. With Tariffs, it's destroyed and doesn't magically come back. Soy bean market? Literally no more future profit potential now that our largest buyer has gone elsewhere.
Tariffs just effectively convert long term viable market wealth to short term government wealth in a time when markets are already suffering.
In no reasonable calculation will the gains of any Tariff offset the long term losses in the market those Tariffs destabilize. There's literally hundreds of years of historical evidence supporting this as the outcome.
Eldritch is right, but it’s kinda like Newtonian physics vs general relativity: you can think of (federal) taxes as “funding the government” and it’s not a terrible approximation. But it’s not the reality.
The reality is more like what Eldritch said: money is spent into existence, and taxed out of existence. The issuer of a currency doesn’t need to take the currency from you in order to spend it — they need to destroy it so that their newly-printed currency is actually worth chasing after.
Sounds like a distinction without a difference, right?
Except it matters when we talk about “tariffs funding the government” (cuz they don’t) or “how are we gonna pay for something like the green new deal?” (paying for it is the easy part, controlling inflation is the real constraint).
When we talk about major economic initiatives, it kinda matters for people to understand how money actually works. Musk, for example, had no clue and thought he had uncovered some massive scandal when he gained access to the federal payment system and was confused at how the funds don’t actually come from anywhere: https://stephaniekelton.substack.com/p/elon-musk-discovers-the-magic-of
Yes it's true. Taxes don't work that way either.
Simple question to ask yourself. If the government can simply create money, which they can. Why would they need to fundraise through taxes. When they can simply print the money. Answer, they don't. They can simply print it. The issue is that if you create too much you devalue it. Then you need to destroy some to bring it's value back up.
This is why despite constant cries from the fascists bemoaning deficit spending. Claiming government should be run like a business. It's all bullshit. When a government can print money and receive a 2x or better return on investment. Which they often do. Deficit spending effectively pays for itself.