Enbridge Inc T.ENB

RE:RE:RE:Joe Bidens

[Cashcow49]

Fantome wrote:

Marner16 wrote: Biden's edicts this week were simple political posturing based upon the need to deliver on election promises.  For those that have lost jobs because of the decisions, Biden's decsions could be life changing and should be respected.  However, in the big picture, the changes are simply window dressing.

The world needs to contol the fear that has been spread by the Covid story before we get anywhere.  I'm not sure Biden can really do anything, but at least he is posturing in the right direction which is better that what we have seen in the past.

The elephant in the room is how the heck are debts being incurred in the west ever going to get paid.  The answer is that they aren't.  The entire exercise feels to me like the USA successfully bankrupting the USSR with the Star Wars head fake in the past. 

So, economies are going to be a high wire act for who knows how long unless the world acknowledges that money is meaningless.  The Chinese did it with great success.  The west will continue to grapple with the concept until it crumbles or acquiesces.

The debt situation for Governments is a bit like what a juggler does in terms of keeping balls in the air...the thing can actually work if certain things continue....

1....interest rates stay very low

2....there is sufficient economic growth so that the debt stays at a manageable percentage of the total economy

In the case of the US and to a similar degree in other Western economies....the unholy alliance between the Government and the central bankers will try to keep the interest rates low for as long as possible....the challenge that they face is that excessive printing of money will eventually make it worthless and there will be excessive inflation. (we saw this in Germany almost exactly a hundred years ago) and interests will have to go up and then debt payments on will skyrocket...IMO...this could be a while before we see this happening...

The real shorter term problem is economic growth....Biden has already started with his Executive Orders to set the table for slower growth and eventually a recession.  Given the speed that he is moving....an especially if succumbs to the pressure and his campaign promise to raise corporate taxes back to pre Trump levels....we will see an economic slowdown in the not too distant future.  When that happens...it will blow the debt situation wide open and it will not be pretty....when will this happen?....it's anybody's guess....for what it is worth... my planning assumption is sometime in the next 1-2 years....or in other words...next year or early 2023...