What would trigger the collapse of the national debt?

File: IMG_1374.png (200KB, 728x444px) Image search: [Google]

200KB, 728x444px

>>131077151
The nation's debt can't "collapse." Educate yourself on economics. A massive debt is just literally a massive liability. Which makes our country appear unstable and childish to stop spending. That said, the next economic downturn will be bad, really bad and we can't just spend our way out of it like last time.

>>131077620
>Educate yourself on economics.

What does it look like I'm trying to do?

What's the difference between a downturn and a collapse?

File: IMG_1372.jpg (62KB, 795x492px) Image search: [Google]

62KB, 795x492px

>>131077783
Downturn is a euphemism for economic recession. Collapse --much less defined -- is where markets, banks and the government are unable to support one another in their typical functions and institutions begin to fail. The Fed and the press won't admit this but 2008 was beginning to be a collapse. AIG, Lehman and others were put out of business. Until Ben stoped in and began "ZIRP" and "QE". Fancy terms for printing money and buying assets.

File: IMG_1371.png (26KB, 620x348px) Image search: [Google]

26KB, 620x348px

>>131077151
Also, there is never a need for financial debt on a national level but our banking system is literally a giant funny money printing company that is engineered to increase over leveraged debt on the individual AND institutional level. We are now at the critical mass for said debt. $20 trillion.

>>131078617
Let me read what you wrote real fast, then I'm sure I'll have more questions. Thanks for the reply.

>>131078183
So a downturn is just a recession like we saw several times in US economics since 1990. Collapse would pretty much be shit hits the fan Black Tuesday style? You say institutions would begin to fail, can you further define institutions? Also this is the first I've heard of ZIRP and QE. Can you elaborate on those further or provide more material a layman could comprehend?

>>131078617
What do you mean by "there is never a need for financial debt on a national level"? Also does over leveraging debt just mean being able to make it seem like said debt is worth more money than it actually is(like fractional reserve)?

Also, why do you say critical mass? And what would the ramifications that state be? I thought nation's debts couldn't collapse.

File: IMG_0686.jpg (418KB, 1125x2000px) Image search: [Google]

418KB, 1125x2000px

>>131078737
Read this for an idea of the current situation in the market and listen to the Jew on the video. He's literally saying the only thing propping up the market is free cash from the banks.

>>131078960
An institution is literally anything of several people: Ohio State, the local metropolitan museum, a bank, Proctor and Gamble.

File: IMG_0682.gif (338KB, 792x3158px) Image search: [Google]

338KB, 792x3158px

>>131079396
Forgot link:http://www.cnbc.com/2017/06/18/liquidity-big-driver-being-the-market-rally-bmos-ablin-says.html
Zirp = zero percent interest rate program. I.e. Free fucking money for the banks to keep collapse at bay.
Q.e= quanitative easing. Fed buying assets for cash flows.
Essentially the further "upstream" an institution is to money, i.e. Banks and companies heavily dependent on cash, the more at risk and likely to fail during a recession .

>>131079200
Critical mass refers to the fact that congress won't pass a budget and won't up the national debt level. Not really a nominal amount of debt at which our country fails.

>>131080017
Went and made some tea, gonna read and watch now. Thread will probably be archived from shitposts before I can respond, so if I don't get back to you, thanks for the information up to this point.

>>131080017
What happens when these two things conflict? The lack of budget or debt to sort of wing it?

>>131081936
Of the don't do a budget in a few months, they will hit a MAJOR roadblock. There are multitudes of things that need funding through the fed but needless to say many things won't be working