Debt

Trump Suggests Eliminating the Debt Ceiling – Dollar Falls

usissuescom Taxes & Spending , , , ,

By Clint Siegner – Re-Blogged From Money Metals Exchange

Those who paid any attention to the financial press last week saw the following narrative; President Donald Trump betrayed Republicans by cutting a deal with Democrats Nancy Pelosi and Charles Schumer. They agreed to punt on the borrowing cap until December and spend $15 billion for hurricane relief.

Americans are supposed to conclude that Trump is flip-flopping, and that Republicans aren’t responsible. Dig just a little, and you’ll find only one of those things is true.

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Death Of The US Dollar Reserve Currency

usissuescom Monetary Policy , , , , , ,

By SRSrocco – Re-Blogged From http://www.Silver-Phoenix500.com

The Death of the U.S. Dollar as the world’s reserve currency will have a profoundly negative impact on the lives of most Americans.  Unfortunately, 99% of the population has no clue.  The only reason 1% of U.S. citizens understand what is going on, is because the Mainstream media and financial networks have distorted the truth and the reality of our present situation.

What happened in the markets today was a perfect example.  Zerohedge published an article today titled,  ‘Traders’ Panic-Buy Stocks, Shrug Off Nuclear Armaggedon, Debt Ceiling, & Biblical Flood Fears, and stating the following:

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Sleeper Issues Poised To Rattle Markets

usissuescom Foreign Policy, GDP & Employment , , , , , , ,

By Clint Siegner – Re-Blogged From http://www.Silver-Phoenix500.com

Investors have been well-trained in complacency. They have spent the past few years watching markets shrug off momentous geopolitical events – each more quickly than the last. Brexit’s impact faded within days. Trump’s election faded within hours.

Stocks traded at all-time highs this summer and volatility made all-time lows. That is the set-up as we head into the fall…

Almost nobody seems nervous. In this age of central planning and highly artificial markets, it is hard to tell when this period of strange market serenity will end. But vigilant investors should have a few ideas. The next few months are going to challenge the status quo.

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Government Debt Isn’t Actually Debt (??)

usissuescom GDP & Employment, Monetary Policy , , , , , , ,

By John Rubino – Re-Blogged From Dollar Collapse

The failure of fiat currency and fractional reserve banking to produce a government-managed utopia is generating very few mea culpas, but lots of rationalizations.

Strangest of all these rationalizations might be the notion that government debt is not really a liability, but an asset. Where personal and business loans are bad if taken to excess, government borrowing is not just good on any scale, but necessary to a healthy economy. Here’s an excerpt from a particularly assertive version of this argument:

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The Death of Abenomics; the Rise of Interest Rates

usissuescom Foreign Policy, GDP & Employment, Monetary Policy , , , , , , ,

By Michael Pento – Re-Blogged From http://www.PentoPort.com

Job approval numbers for Japan’s Prime Minister Shinzo Abe are in freefall. Abe’s support has now fallen below 30%, and his Liberal Democratic Party recently suffered heavy losses stemming from a slew of scandals revolving around illegal subsidies received by a close associate of his wife.

But as we have seen back on this side of the hemisphere, the public’s interest in these political scandals can be easily overlooked if the underlying economic conditions are favorable. For instance, voters were apathetic when the House introduced impeachment proceedings at the end of 1998 against Bill Clinton for perjury and abuse of power. And Clinton’s perjury scandal was indefensible upon discovery of that infamous Blue Dress. The average citizen, then busily counting their chips from the dot-com casino, were disinterested in Clinton’s wrongdoings because the 1998 economy was booming. Clinton remained in office, and his Democratic party gained seats in the 1998 mid-term elections.

Therefore, Abe’s scandal is more likely a referendum on the public’s frustration with the failure of Abenomics.

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The Elephant In The Room: Debt

usissuescom Foreign Policy, GDP & Employment, Monetary Policy , , , , , , , ,

By David Chapman – Re-Blogged From http://www.Gold-Eagle.com

It’s the elephant in the room; the guest no one wants to talk to—debt! Total global debt is estimated to be about $217 trillion and some believe it could be as high as $230 trillion. In 2008, when the global financial system almost collapsed global debt stood at roughly $142 trillion. The growth since then has been astounding. Instead of the world de-leveraging, the world has instead leveraged up. While global debt has been growing at about 5% annually, global nominal GDP has been averaging only about 3% annually (all measured in US$). World debt to GDP is estimated at about 325% (that is all debt—governments, corporations, individuals). In some countries such as the United Kingdom, it exceeds 600%. It has taken upwards of $4 in new debt to purchase $1 of GDP since the 2008 financial crisis. Many have studied and reported on the massive growth of debt including McKinsey & Company www.mickinsey.com, the International Monetary Fund (IMF) www.imf.org, and the World Bank www.worldbank.org.

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