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Posts Tagged ‘Corporate Debt’

National Debt: US Economy Priced in Gold - Cause For Alarm

National debt has increased exponentially for the past 50 years. The 35-year graph shows on average the national debt has increased rapidly, even when priced in gold. Debt is increasing far too rapidly & gold is underpriced. The current national debt is equal to about 100 times the total value, at current gold prices, of the gold “officially” stored in Fort Knox. This should be cause for alarm.

Oil Slump Says ‘No’ to Recovery Story - Eric Sprott Was Right

Cheaper oil prices don’t just come ‘out of the blue.’ Other commodities used for raw materials, construction & economic growth, have been languishing too. Real median incomes remain stagnant since the Great Recession. These are all signs that the recovery we are seeing is mainly asset inflation brought on by cheap debt, not economic growth.

Nine Years on, People Forget How Nasty an Interest Rate Increase Can Be

If the Fed raises rates, I would expect for the US economy to come close to a recession, more deflation & probably some disruption in equity markets. If they don’t raise rates as the decision is data-dependent & it’s coming in weak – you might actually see stocks higher at the end of the year than they are now based on more free money.

A Perfect Storm: Brace Yourself for an Epic Economic Meltdown

The strong dollar is deflationary. This means oil prices will likely remain low. This means much of the energy-sector debt cannot be paid off and will default. I believe we could see an economic meltdown at least six times the size of the 2007 subprime mortgage meltdown. However, there will be several crucial differences.

Currency Wars Reignite As Yuan Tumbles Most In 2 Months

Did China just re-enter the currency wars? The Chinese Yuan dropped 0.29% overnight – its biggest drop since September and 2nd biggest devaluation since March – as the currency tumbles back in line with the PBOC’s fixing for the first time in over 3 months. China’s huge corporate debt market also appears to be freezing.

Janet Yellen Is Wrong About Inflation

If consumer prices are rising faster than the authorities say, it means two important things: First, real GDP is not growing. Real GDP growth is adjusted for inflation. More inflation, less real growth. Second, the real cost of borrowing is much lower than we think. If inflation is higher, the real interest rate is lower.

Why Did China Order Its Smaller Banks To Load Up On Cash?

Smaller banks are the weakest link of China’s financial system because their lack of a stable deposit base would force them to seek more expensive funding and offer more risky loans. They will be hardest hit when borrowing costs are elevated and the economy slows.

The Greatest Debt Crisis The World Has Ever Seen Is Coming

This debt crisis is going to end up destroying the global financial system and the unprecedented debt binge seen right now is going to continue until someday we hit a brick wall of financial disaster. We can yell and scream, but what is happening isn’t going to stop.

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