Anyone that thinks that the U.S. economy can keep going along like this is absolutely crazy. We are in the terminal phase of an unprecedented debt spiral which has allowed us to live far, far beyond our means for the last several decades. Unfortunately, all debt spirals eventually end, and they usually do so in a very disorderly manner.
Read More »U.S. Economy: Reduce Spending (Future Depression) OR Keep Spending (Future Hyperinflation) – +5K Views
The U.S. government is in what is known as a "debt death spiral". They must borrow money to repay prior debts. It is as if they are using their Visa Card to make an American Express payment. The rate of new debt additions dwarf any rate of growth the economy can possibly achieve. The end is certain, only its timing is unknown, and, once interest rates begin to rise, and they will, it's game over.
Read More »Belt-Tightening Too Soon Would Cause World to Sink into Deflationary Quicksand
While belt-tightening is indeed required cutting too fast would tip the West back into slump and kill tax revenues, solving nothing – a risk that austerity priests rarely acknowledge. Pacing is everything. Words: 620
Read More »Will the Fed Engineer a Stock Market Crash to Flood the Bond Market With Much Needed Demand? (+2K Views)
Could the Fed be preparing another stock crash to flood the bond market with demand? Who knows but it would make plenty of sense to me. Words: 789
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