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What would a "Day of Reckoning" look like?

GNL says

What would a "Day of Reckoning" look like?

Hyperinflation.

I don't think the debt itself will cause hyperinflation.

HeadSet says

Hyperinflation.

Like the US housing market?

Fed keeps bailing out bad debt and government spend, this can’t sustain.

Quantitative Easing is bailing out bad debt. That’s balance sheet. Money printer is bailing out deficit spending. All inflationary.

GNL says

I don't think the debt itself will cause hyperinflation.

The debt would be THE cause of hyperinflation. When the debt is too high to even pay the interest the government pays it with a printing press and sets off hyperinflation.

RayAmerica says

HeadSet says

Hyperinflation.

Like the US housing market?

The housing market is nowhere near hyperinflation. Hyperinflation would be housing prices doubling every month and seeing $500million 1200 sqft homes.

The Bubble Is Bursting: Delinquency Rates Have Doubled And Credit Card Defaults Are Soaring
by Michael Snyder

"Did you know that U.S. households are carrying $1.18 trillion in credit card debt? Considering the fact that the average rate of interest on credit card balances is now over 20 percent, that is not good news at all. Sadly, most of the country is just barely scraping by from month to month in this very harsh economic environment, and turning to credit cards for some relief can be extremely tempting. A thousand dollar credit card balance can turn into four or five thousand dollars in the blink of an eye, and once you get that deep into the hole it can be very difficult to ever dig yourself out. Of course if you end up losing your job or having a major medical emergency, that can be enough to push you completely over the edge financially. Today, that is happening to an alarming number of Americans."

More here: https://theeconomiccollapseblog.com/the-bubble-is-bursting-delinquency-rates-have-doubled-and-credit-card-defaults-are-soaring/

HeadSet says

The housing market is nowhere near hyperinflation. Hyperinflation would be housing prices doubling every month and seeing $500million 1200 sqft homes.

Technically you are correct. However, for those that cannot afford to purchase a highly inflated price for a home, or, are experiencing ever increasing rental rates, it no doubt feels like 'hyperinflation' for them.

By the way, you are providing a Weimar Republic type of hyperinflation as an example. The USA will probably never see anything remotely close to that, but it nevertheless is heading in the very same direction. Regarding housing, except for the well known pockets of real estate such as NYC, San Francisco, etc. residential real estate typically rose at a rate of about 3% annually. For well over a decade, since the Fed artificially kept home mortgage rates at record lows, real estate 'values' have dramatically increased ALL OVER THE COUNTRY. This cannot last. When the housing bubble finally bursts, and it will, the 2006/7 financial crisis will look like a picnic.

RayAmerica says

A thousand dollar credit card balance can turn into four or five thousand dollars in the blink of an eye, and once you get that deep into the hole it can be very difficult to ever dig yourself out.

What? That's just doubling down on stupid and putting more on the card. Gotta own that.

Also, it's a business transaction. Don't pay it. Can't go to jail in this country unless it's verifiable fraud. You just don't pay it. I don't condone this and you get a credit hit, but it's fact. They guilt you into thinking you have to pay it. People fucking kill themselves over this type of shit when they didn't need to.

Also $1k of CC debt is trivial. Carry upwards of $40-50k at one time, yet somehow it doesn't turn into $150k of debt. Fact is the person was not responsible with paying it off or purchases. That has little to do with the economy and more about personal responsibility and trying to keep up with the Jones'. Where I'm at all the idiots are getting $20-30k side by sides. Not for work, but leisure. That's retarded.

HeadSet says

GNL says

I don't think the debt itself will cause hyperinflation.

The debt would be THE cause of hyperinflation. When the debt is too high to even pay the interest the government pays it with a printing press and sets off hyperinflation.

We already do that