Wednesday , 23 September 2020


Debt & Deficits

U.S. in Terminal Phase of Unprecedented Debt Spiral

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.

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European Debt Problems Continue to Escalate

With stocks at record highs and the U.S. economy improving, the European debt crisis seems like a distant memory....[While] Europe is no longer the market’s focal point, however, that doesn’t mean the euro zone’s financial problems have gone away.

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Variable Interest Rates: Staring Into the Abyss

It seems that the past few years of falling interest rates have lulled a big part of the global economy into financing with variable-rate debt...[As such,] when interest rates go up (as they did last week), there’s a world-wide reset in interest costs that, best case, amounts to a tax increase on individuals and businesses and, worst-case, threatens to blow up the whole system.

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The Fed Is About to Turn Off the Monetary Spigot! Yeah, Sure

Fearing that the flow of nourishing mother milk from the Fed could dry up, a resolutely unweaned Wall Street threw a hissy fit and the dummy out of the pram last Thursday. The end of QE is seen as the beginning of the end of super-easy policy and potentially the first towards normalization. There is only one problem: it won’t happen. Here's why.

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What Will Happen When the Fed Finally Ends Its Extreme Easing Efforts?

Last Wednesday, Fed Chairman Ben Bernanke promised to end his bond-buying addiction - cold turkey - in mid-2014. That is, as long as the economy is strong enough. As a result, investor fortitude was pushed to the brink. Stocks sold off hard, sending the S&P 500 Index down 1.4%. Before you head for the exits, too, let's get a little perspective.

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U.S. Economy: Reduce Spending (Future Depression) OR Keep Spending (Future Hyperinflation) – +3K 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.

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A Moderate Economic Downturn Will Crush Average Americans – Here’s Why

When Congress and the Obama administration let a 2% payroll tax cut expire on January 1 as part of the fiscal cliff deal, economists predicted a consumer retreat, [but such has not been the case - at all. It seems that] soaring housing and stock market prices are likely putting Americans in the mood for spending - but where’s the money coming from?

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Why the End of This Economic Death Spiral Is So Hard to Call (+2K Views)

Whether you are an investor, concerned citizen or merely someone trying to understand the current economic situation, you should be worried. Watch this video to get an outstanding overview of what is occurring. It is probably the best short explanation as to why the end of this economic death spiral is so hard to call.

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