Tag Archives: This Time Is Different: Eight Centuries of Financial Folly

The history of financial crises and the relationship between growth and public liabilities shows that burdens above 90% are associated with 1% lower median growth - and the United States’ debt level is currently hovering around 90% on a gross basis and 60% netting out assets.

The National Inflation Association (NIA) has just posted an article* which makes a number of interesting arguments for the advent of hyperinflation and, while I agree with the conclusion that we could potentially face such an event, I see it as just one of a few possible outcomes. Let me comment on the specific points in the NIA article. Words: 1666

It is clearly evident that America's debt picture is truly astronomical and, like the situation with Greece, the debt cannot, and never will, be repaid. Indeed, any way you look at it, the consequences for the United States, let alone the many other haunted economies, are grim, dismal - even disastrous. Words: 1166