The U.S. economy grew by 4.1 percent during the past quarter, and that’s good news. All the economic signs are positive. Or are they?
There is much less discussion about debt, which has hit another record high. The global debt just reached $247 trillion for the first quarter of this year. That is $29 trillion higher than two years ago. While we rejoice in growth, let’s consider that the global debt-to-GDP ratio exceeds 318 percent. The U.S. debt to GDP exceeds 100 percent. The flood waters are rising, the dams are broken, and we are literally drowning in debt.
Emerging markets, such as Argentina and Nigeria, have accumulated $58.5 in debt, $900 billion of which are in U.S. bonds which will mature in 2020. When interest rates eventually rise, as they will, repayment and refinancing will be more difficult and expensive. Some debts, without a doubt, will be defaulted.
Investor Warren Buffett admits stocks are currently overvalued. He foresees the market going down, but then pulling itself back up. Others are a bit more pessimistic. David Lipton of the IMF has indicated that the burgeoning debt, combined with low interest rates, pose a tremendous economic risk. Dan Coatsof U.S. National Security views America’s $21 trillion debt as not only an economic problem but a security risk, as well.
With rising interest rates looming and trade war between the U.S. and China a real possibility, there are reasons for concern.
More
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
2 comments:
They've been preparing for this now for decades. They've literally stolen trillions worldwide and now it's time for worldwide collapse. This will thin out the masses while they retreat to all the underground cities that have popped up all over the country
look locally. Rental places whos names wont be mentioned file bankruptcy and open new LLCs and corp names and sue and say they're rich when they owe and don't pay. Look at Universal Mortgage. Employees there teaching classes on how to make money and helping others get money but they file bankruptcy or have judgements for nonpayment in amounts over $50,000 or IRS dept. The rental properties threatening court but theyre wrong and stop when lawyers make it apparent prior to court. This is the world we live in.
Post a Comment