I agree that there are lots of scary outcomes. Past crisis, like in 97-98 were easy to handle because the USD #debt load was manageable. Now, the #USD overhang is around $25 T( in 2016)--- about 6 times the size of the #Fed's balance sheet--- and the Fed cannot help should things really come apart. A strong #dollar policy is not in anyone's interest.
Gary... interesting comment. However, I would not use surplus funds to buy a new car. When the system finally cracks, there will be a huge glut of new and semi-new cars at a huge discount.
How are investors paying down debt?? U.S. debt is now $19.4 trillion. How is that heading lower? Maybe you can clarify what you mean.
Lastly, Government #Bonds are like gold until expensive oil production declines. Cheap #oil production peaked several years ago, now we are waiting for the peak of expensive oil. Actually, if we don't see tens of trillions of Helicopter money dumped on the market shortly, expensive oil production may have already peaked.
Government bonds are #DEBT. The world is full of debt up to their eyeballs. Without growing energy production, this debt will not be paid back. #Gold and #silver are two of the best assets to own going forward.
Keynes says spend through government #debt. #Friedman and #Lonergan say pay base money one time to expand the money supply. I think that is more responsible than any government debt expansion. JMO, Doug.
The Emerging Markets Are About to Feel the Pain of a Soaring Dollar
I agree that there are lots of scary outcomes. Past crisis, like in 97-98 were easy to handle because the USD #debt load was manageable. Now, the #USD overhang is around $25 T( in 2016)--- about 6 times the size of the #Fed's balance sheet--- and the Fed cannot help should things really come apart. A strong #dollar policy is not in anyone's interest.
The Subprime U.S. Economy: Disintegrating Due To Subprime Auto, Housing, Bond & Energy Debt
Gary... interesting comment. However, I would not use surplus funds to buy a new car. When the system finally cracks, there will be a huge glut of new and semi-new cars at a huge discount.
How are investors paying down debt?? U.S. debt is now $19.4 trillion. How is that heading lower? Maybe you can clarify what you mean.
Lastly, Government #Bonds are like gold until expensive oil production declines. Cheap #oil production peaked several years ago, now we are waiting for the peak of expensive oil. Actually, if we don't see tens of trillions of Helicopter money dumped on the market shortly, expensive oil production may have already peaked.
Government bonds are #DEBT. The world is full of debt up to their eyeballs. Without growing energy production, this debt will not be paid back. #Gold and #silver are two of the best assets to own going forward.
Steve
The Soaring Risk Of Flying In Bernanke’s Helicopter
Keynes says spend through government #debt. #Friedman and #Lonergan say pay base money one time to expand the money supply. I think that is more responsible than any government debt expansion. JMO, Doug.