In today's update we look at yet another 'Punch and Judy' American election farce which once again ignored the 'Elephant in the room' - the inevitable U.S. $121.7 trillion debt crisis and the coming global $250 trillion debt crisis.
We briefly look at the outcome of the elections, how markets have reacted in the short term and more importantly the long term outlook for markets and the dollar
We examine the “Punch and Judy” farce that were the American elections this week in which both the politicians, the media and the people again managed to completely ignore one of the greatest financial, economic and societal challenges facing the U.S. and indeed the world – the coming U.S. and global debt crisis.
Trump said he would erase America's debt in 8 years. It's now bigger than ever. When this promise was made, the national debt stood at $19 trillion. When Trump became President the US National debt was just below $20 trillion; it has since risen to $21.7 trillion.
During Obama’s presidency, the total national debt has risen from $10.6 trillion to nearly $20 trillion.
This debt is just the nominal national debt and there is also the not insignificant matter of the between $100 trillion and $200 trillion in unfunded liabilities – for medicare, medicaid and social security. As the Baby Boomers retire, these liabilities are coming due in the coming years.
The U.S., like the EU and most western nations, is “kicking the can down the road.” Consequently, a U.S. and global debt crisis looks likely in the coming months and years.