Article:We Might As Well Face It – America Is Addicted To Debt(not MMMers)

[Cougar]

this is an article in zerohedge.

article in zerohedge: http://www.zerohedge.com/news/2015-06-16/we-might-well-face-it-%E2%80%93-america-addicted-debt

now as you can guess, if you know zerohedge; its all bad news; the country is in debt up to its eyeballs and one more foreclosure and the nation is going down; but i'm not going to go there; i am not so pessimistic. i believe the usa has got a lot of years like maybe 10 where it barely stays above 2% gdp growth bec ause of the debtload it carries; but it still dwarfs china economically; so i dont think its going down for the count.

anayways, i'm focusing on the personal debt loads and how good it is to be a mmm'er:

from the article: "American consumers have had a love affair with debt that stretches back for decades.  As the chart below demonstrates, overall consumer credit has more than doubled since the year 2000…"

except for mmm'ers. i'd bet debtloads for the mmm community is a net positive by 6 figures least and anyone who knows history or has read books like 5,000 years of debt knows that the normal state for the majority of people over time has been to be in debt or barely have enough to go a month or two on their own resources.

yes, thanks to mmm and in my case ERE; the tougher days ahead that will come as the usa does have to deal with its debts; will barely be noticed by the mmm community and to that i say thanks mmm !

[alsoknownasDean]

The debts that will likely be inflated away down the track.

[arebelspy]

The debts that will likely be inflated away down the track.

But new ones, at inflated prices, will be acquired.  It's not like they'll be inflated away so no one has debt.

[tooqk4u22]

The debts that will likely be inflated away down the track.

But new ones, at inflated prices, will be acquired.  It's not like they'll be inflated away so no one has debt.

Not all debts are long term fixed rate debt that can be inflated away.

If inflation rises then to will interest rates. 

Interest rates are a significant reason why debts are so high: interest rates high, debts low = payment......interest rates low/debt high= same payment.  Debt service (i.e. payments) have not gone up.

If you reverse that it would be painful. 

BTW....all debt has skyrocketed in last 30 years... personal, corporate, state, federal.

Incidentally, the majority of federal debt is short to intermediate term so the fed is extremely dissincentivized to allow rates to rise....it would cost billions and billions.  The gov't should be floating majority 30 year bonds right now like corporates are doing but gov't can't afford to.

Excess debt always kills if not corrected......true for people, true for companies, true for gov't.