Silver as an investment

Category Archives: Debt to GDP Ratio

Putting America’s Record-Breaking $20 Trillion Debt In Global Context

The U.S. federal government just passed a record $20 trillion in publicly held debt. That’s bigger than the entire economy of every country in the European Union, combined. As HowMuch.net notes, the debt will only grow higher unless President Trump and the U.S. Congress can agree to unprecedented spending cuts combined with tax increases.  Don’t count on that happening […]

Fed’s Kaplan Makes A Stark Admission: Equilibrium Rate May Be As Low As 0.25%

As we have hammered away at for years, “the math doesn’t work”, and it appears The Fed just admitted it. In a stunning admission that i) US economic potential is lower than consensus assumes and ii) that the Fed is finally considering the gargantuan US debt load in its interest rate calculations, moments ago the […]

How Big Of A “Deleveraging” Are We Talking About?

Authored by Lance Roberts via RealInvestmentAdvice.com, Last week, I discussed the issue of debt and why “people buy payments.” This article generated much discussion and several emails including the following. “You argue that rising debt levels lead to slower economic growth, but what if it is slower growth leading to rising debt levels?” This is […]

“How Does This Ever End?” An Interview With Lacy Hunt

The US economy is struggling with too much debt at every level. A debt jubilee isn’t going to solve it; and shifting demographics will likely make it worse. So, is America headed for two decades of lost growth like Japan? Dr. Lacy Hunt, who was interviewed by Erik Townsend on the latter's MacroVoices podcast, considers […]

Catalonia Threatens Spain With “Financial Bloodbath”

Authored by Don Quijones via WolfStreet.com,  Catalonia’s independence would set off Spain’s debt time-bomb. On Monday El Pais published leaked excerpts from what it claims to be the Catalonian regional government’s road map to independence. The secret document includes a plan for the region to unilaterally break away from Spain should its citizens be prevented […]

The Long Run Economics Of Debt Based Stimulus

Authored by MN Gordon via Acting-Man.com, Onward vs. Upward Something both unwanted and unexpected has tormented western economies in the 21st century.  Gross domestic product (GDP) has moderated onward while government debt has spiked upward.  Orthodox economists continue to be flummoxed by what has transpired.   What happened to the miracle? The Keynesian wet dream […]

In Latest Tightening Move, China To Cut Money Supply Growth To 12%

For a majority of China watchers, while Beijing’s goalseeked GDP reports are largely dismissed as politburo propaganda, most of the attention falls on the PBOC and banking sector’s credit creation, and particularly, how this translates into broad money supply, or M2, growth: after all, in a nation which has roughly $35 trillion in bank assets, […]

Trump And Draghi May Bring A Return Of The “European Solvency Crisis”: Barclays

Since Drahi’s infamous “whatever it takes” warning in the summer of 2012, European bond yields have been a one way street lower, and until the recent Trumpflation rally, had tumbled to all time lows, in many cases well below 0%.  There are two catalysts, however, that may be ending Europe’s QE-driven free ride, and according […]

Central Banks Have Broadcast What is About to Hit…

The biggest problem for the financial markets is not stocks nor is it the economy. It’s the Bond Bubble. Globally the bond bubble is now over $199 trillion in size. The world taken as a whole is sporting a Debt to GDP ratio of over 250%. This is a systemic issue. Once the bond bubble […]

The Japanese Financial System Is Beginning To Spin Wildly Out Of Control

The financial system of the third largest economy on the planet is starting to come apart at the seams, and the ripple effects are going to be felt all over the globe.  Nobody knew exactly when the Japanese financial system was going to begin to implode, but pretty much everyone knew that a day of […]