Debt & Deficits

The entire world went into debt for the equivalent of tropical vacations and, having now enjoyed them, realizes it must pay the bill. The resources to do so do not yet exist so, in the time-honored tradition of lenders everywhere, we extend and pretend - but with our ability to pretend almost gone, we’re heading to the Great Reset.

There is a strong correlation – both historically and logically – between interest rates and credit card debt delinquencies. As rates rise, outstanding debt burdens become difficult to service so, until the Fed reverses their tightening, things will only worsen for credit-card users from here. That’s why a serious question needs to be asked: with auto loans, student loans, and credit card delinquencies all on the rise – and we’re not even in a recession – what can we expect from here?

We have lived through a credit induced holographic standard of living considered to be “normal”. Never...has a genuine lifestyle been funded continuously on credit. Each attempt always failed miserably. The only difference today is that more of the world is involved along with more credit used than ever before. The only logical conclusion is this latest credit experiment to fund lifestyle will fail on a far grander scale than ever before!

Almost all governments and commentators have lined up since 2009 to support the money-printing policy but the hard bit happens now as it starts to become obvious that the policy has failed. We now have all the debt, but we don’t have the growth that would enable it to be paid off

The math is simple. The more a country increases its debt to simply stay afloat, the more like the increasing debt will cause a tightening of credit. The next step is a burst bubble and economic crisis. This is what happened in 1929 and in 2007, and it’s happening now.

The last time the United States had a national debt level this high (106% debt-to-GDP), it was during the immediate aftermath of WWII in the late 1940s so what's driving the national debt so high these days and at what point does the situation reach a tipping point that gets people to act?

Some nasty dark clouds are forming on the financial horizon as total world debt is increasing nearly three times as fast as total global wealth.

The U.S. and global economies will contract to a level we have never experienced before. We are most certainly in unchartered territory. The GRAND FACADE will come crashing down to the shock and surprise of the masses. Here is my analysis and the reasons we are heading towards a cliff. Words: 1171

Savers and investors alike need to begin to prepare their portfolios for interest rate rises against a backdrop of crisis-triggering debt levels and unproductive economies. Here's how.

Have Americans been living above their means these past 37 years (since 1980)? I think so. We have borrowed and borrowed (and borrowed) to maintain our prosperity and our exceptional lifestyle. Much of this at the expense of the world’s citizens who provided us the goods. America has 4.4% of the world’s population yet we consume some 23.6% of Global production. How can this happen? Why this favoritism?