Thursday , 22 July 2021

Debt & Deficits

How Likely Is the Fed to Go Bust & What Would it Mean For YOU?

At this point, thanks to a long-standing policy of wanton money printing, the Fed has more liabilities than ever before in its history - by an enormous margin - and this precarious balance sheet is dangerous, because if the Fed goes bust, everyone loses [- including YOU. Let me explain why that is the case]. Words: 398

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When the Debt Bubble Bursts We’re Going to See Economic Chaos So Get Ready – NOW! (+6K Views)

Never before has the world faced such a serious debt crisis. Yes, in the past there have certainly been nations that have gotten into trouble with debt, but we have never had a situation where virtually all of the major powers around the globe were all drowning in debt at the same time. Right now, confidence is being shaken as debt levels skyrocket to extremely dangerous levels. Many are openly wondering how much longer this can possibly go on. [Here's my take on the situation.]

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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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Lessons of 2008 Forgotten – Debt Threatens to Undo the World Again (+2K Views)

Little has been done in the past six years to restructure economies and cut debt i.e. learn the lessons of 2008. Because we’ve partially recovered from that traumatic period, that’s led to complacency. All the while, the debt that caused the bust in the first place has compounded and threatens to undo the world again. Let’s hope it doesn’t come to that.

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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 (+2K Views)

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 (+2K Views)

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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