The tipping point for global debt – total global needs to grow to $213 trillion by 2020 just to sustain current growth.
Every so often markets forget that too much debt is a bad thing. We are already seeing inflation in many items and the standard of living being pushed lower for many Americans thanks to policies that crush the US dollar and allow the Fed to expand its balance sheet without congressional approval. There are consequences […]
Who controls the wealth in the US? Western countries expand balance sheets at the expense of their younger population.
If the debates reflected the true interest of what Americans have on their mind the entire debate would revolve around the slow erosion of the US middle class. Yet this is something that will only be a footnote and for any discussions that do come up the specifics will be lacking. The reality is we […]
How the Fed bluffs the financial system – Labor force participation back to levels last seen over three decades ago. Fed policy aims at pushing US dollar lower.
The US is facing a long trend of aging Americans entering into retirement or what can be viewed as life post-work. The vision of sitting on the sand in some resort villa is largely a dream. Nearly half of American when they leave this world go out broke like a country western song. Today as […]
Deleveraging from one bubble to another – $6.2 trillion in mortgage debt was added between 2000 and 2008. Since the peak in 2008 $1.3 trillion in US household debt is gone but another bubble is brewing hidden under the rubble of the busted housing market.
There is some interesting data on the deleveraging that is occurring with the American household. Since the peak in Q3 of 2008, US households have lowered their outstanding debt by $1.3 trillion. It is important to understand how this deleveraging is occurring. First of all, Americans are largely paying down existing debts much faster and […]