https://www.zerohedge.com/news/2019-...al-debt-levels
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The US government has $22 trillion of debt and is running $1 trillion+ deficits every year. There’s a record $15 trillion of corporate debt. And the US consumer has racked up around $4 trillion of debt (not including mortgages).
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So, $22 trillion in the whole and a $1 trillion deficit in a good year. Not to mention, interest rates are rising, which means all of this debt is just getting more expensive.
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The government already spends 28% of its revenue just on interest (at a time when interest rates are near all-time lows).
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Bee scared indeed. You have reason to be.
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The European Central Bank and Bank of Japan both essentially reneged on their plans to start tightening monetary policy. And yesterday, the Federal Reserve has signaled it will stop hiking rates.
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Didn't I predict the FED will end QE again after much shorter time than anyone expected? I did. Its all too much off balance. We are in the clinch of the vortex, and there is no more an escape option. We let all chances pass by when there was time left for any course altertaiton to grow sufficnetly in pace so to b reak thoprugh the inner dynamics.
Its like a spaceship getting too close to a black hole. Once the distance has shrunk so much that the engines cannot compensate for the growing gravitation anymore, all things are lost. Your only chance was never to get too close in the first. But we have, and we laughed, and now we are doomed.
The writing already is on all walls, and the signs materialise more and more clearly for everyone with eyes to see.
The only thing I find to be unclear now is how China will getr through the storm ahead. By econiomic treends it is set to overtrake the US as the totally biggest economic prizucer by around the year 2030. It is unclear to me how soft or how hard it will be hit by the implosion of the dollar.
Russia probably is set up best. The bear spend the past years to dug his winter cave especially deep and plaster it with all gold he could find. They have almost no dollar bonds and reserves left, just a tiny and in itself irrelevant fraction of what they once held.
Ironically I think that especially Germany will be hit especially hard this time. When the drama unfolds and crumbles the economy, all the high maintenance costs politicians have established in the past twenty years will come to bera in fukll, and the social structure of the civil society will collapse. What Germany has build in the past fifteen years or so - is just a glorious illusion. A castle build on quick sand. The German business depends to a hilarious ammount on the low wage sector, more than in any other Western country. It is here were people will suffer first, and it is this were the riots and unrest there will be will start at.