Fed's Powell says "day of reckoning" for US debt levels may be a long way off

at least he said there will be "A DAY OF RECKONING" usually these fed chairs are in complete denial..

No it doesn't: until a 1200 lb panda gets in the room and wants to cash in its IOU bonds........

Haha.....fun guys….! Like the expression ! But seriously, qp2 point out a possible strong tool valued at some USD 1.2 trillion, and 1/3 of the Treassury Bills, Notes, and Bonds held by foreign institutions. And China stopped buying the Bonds some year ago. They dont lend Money to someone trying to squeeze them. Has this some power and influence ? Of course it has. Will it be used ? Only if needed, but yes, the Panda will use it and the Gorilla is suddenly put in the corner with a problem. How much Donald see, understand, or thinks about this is another question. In my mind the guy has no developed IQ to understand most, as I think he only looked at old John Wayne and Stallone`s Rambo movies and think the world can be like it.

In theory debt can be repaid, but in real world application it can't. You would need all citizens to forfeit most of their money to pay back. Doing so would wipe most of the money in circulation = epic deflation and economy in the gutter.

Yeah.. though I wish it weren't.. I think hes right.

I am afraid our grandkids will learn the meaning of the word"austerity" long after we are gone.

Debt can be repaid, defaulted on or inflated away. Only one of these options seems viable considering the size of US debt. This day or reckoning will bring a new meaning to D day .......(default) .....

I USED to be a budget hawk and VERY concerned about the USA debt I mean I can't run MY household without paying the bills.....but then I looked at it again from a different lens....

ALL GOVERNMENTS operate in a deficit Some larger than others. For YEARS people have been saying that the USA deficit would bring the US to its knees....but that day hasnt occurred. When you can just print more money and your country is the 800 lb gorilla in the room does it matter?

For you, and what Powell correctly touch upon and what he should actually go some further on, are the potential ways of managing the debt, reduce it as Donald wisely promissed before he took seat in WH, but what he easily forgot 6 months later increasing the debt ceiling to USD 22 trillion, and what has since accellerated in a pace not seen in history. Now while parts of economy goes better, he likes to fuel it more with interest cuts, tax reductions and increased oil export, but at the same time increasing the debt in record speed. Why I say that ? Because what is his "dry powder" and what will he do when the stock market plunges, or economy turns. Because it will, with all fiscal and monetory policy acting now, including a damaging trade war. That is my prediction and hopefully before the Election. But when it happens, he will just blame it all on others, Powell included. As a comparisons, Obama did not raise the debt in close same pace as now, when the US was in a recession 2008 (subprime loan crises) or 2015 (Saudi oil flooding markets). For those not get it yet, (I see unfortunately too many) take an hour and study it, it is fairly simple. And it is not : "The best economy in history of mankind". If you believe in Trumps magic hand on this, continue close your eyes, make a silent prayer and hope. If not, make up your own mind.

Thanks Bruhh ! Very interesting article, aloso views and recommendation by one guy from the inside since Reagan. I strongly believe we are dependant on trade among Asia, China, Europe and USA, and others. We cannot only cut each others hair, we need to deal outside Our borders. We will need to align reasonable terms, and there are certainly power interests, and "weapons" (here the USD) in all ends. I really hope they can come to a reasonable agreement even it seems more like they now are into the the popular "pissing contest" now, and to avoid the "face loosing contest". The USD is stronger because of what is mentioned in the article, but the debt increases month on month for US, and the Chinese use more their USD to infiltrate all interesting tech companies and assets in the western world, US, Europe or resources in Africa and Latin America. We cannot get rid of that, and I think we realize that. We chose them, the Chinese, to be "the factory of the world", in Guangdong Province where all we buy in Our countries, are produced. Almost ALL. Apple chose city of Zhengzhou to be the largest iPhone factory in the world to produce the iPhones, and the Chinese manufacture and assemble it there, with some 350,000 workers now. Do we think the patent protection and Intellectual Proprierty Rights (IPR) are respected ?….haha, no, of course not. They dont give a shit. They not only use the iPhone technology to make their own. They go back, put their best people on it, and make it far better (now 6G...etc) and advance the iPhone. Many will Object to it, but I have seen Smartphones in China, not Huawei, but others and they were shocking good. And by this, the US Apple are lagging behind. This is something one need to be aware of, also when deciding to put all this in Zhengzhou, and think it is regulated under a Non Disclosure Agreement (NDA) or it is under a tight delivery Contract with all sorts of confidentialities, and restrictions. The Chinese could not care less....they do all to take control on what they like to control. So is Donald on a wrong track….? No, I dont think so. Targets are fine, I only think he dont know how to do it. I may not know it either, as it is complex, even I worked close with Chinese for 12 years and lived in China and Singapore (80% Chinese population) these years. Also to constantly humiliate them and to treat them as "your dog" is working in the opposite direction. A smart US diplomat with strong understanding of their behaviour, and culture, and Donald far away, will help alot. Not Pompeo, he is a puppet and as stupid as Donald, and messes it all up. Example: We will have a deal now, no... it will be "phase 1", no....., we will hopefully sign it next month, no....., maybe not, no..., but I know the Chinese need a deal. (my short version of what happened in their nego sessions, last 2 months - Is it impressing ?? Not to anyone, I think, more like a joke, even to the blind Donald - fans, I think). It is as bad as it could be, and I am sure the Chinese laugh their asses off, in their baijio parties now. Anyway thanks for the article and input, Bruhh. I think it gives some light to what is used from the parties and what is fundamental in such processes.

" may " is the key word

He hasn't got any idea but his policies and all Central banks are to blame when it does

with QE?

OK

"...a long way off."
Agreed.
They kicked that can HARD.
It's WAY down the road.
But, that can of bubbly bubbles is still on the road, nevertheless.
We'll continue to see record highs across the stock market throughout 2020, especially immediately after Trump wins re-election.
Gold and silver will sink to unimaginable lows.

Interesting article concerning the real threat of China if we continue to support their devious and evil ways by allowing them to infuse their assets into U.S. assets/markets.
We think it atrocious that China could demand that the NBA bow the knee to Chinese threats, but this is where we are headed (and in a much worse way) if we continue to allow our fund managers and such to combine Chinese capital and debt with our own financial instruments.
Extreme danger is on the horizon. My apologies if I am not following guidelines by posting this link.

https://imprimis.hillsdale.edu/roger-w-robinson-stop-financing-china/

Hey, GillyFX, check out the article linked below. I posted it above in an earlier post but am posting it again here. The trouble with our debt to China is miniscule compared to what they are/will be doing to us in the markets. This article compares what the Soviet Union attempted to do globally (before we stopped them) to what the Chinese are doing. The potential damage is far worse than what Russia attempted. We HAVE to stop Chinese usurpation within a variety of sectors in our markets.
I think you will find it a fascinating analysis unlike any other you may have seen. Right now you are only scratching the surface when looking at how much U.S. debt China owns and how that might affect us.

https://imprimis.hillsdale.edu/roger-w-robinson-stop-financing-china/

Such statements should be well analyzed before its been thrown out, using the word MAY, means he isn't certain.