Debt Bubbles

[SuburbanFarmer]

That’s what I mean; we’ve got a long way to go still...

Inflation won’t cause a collapse on its own; in fact, it would help the debt bubbles significantly.

There may not be a collapse, just devaluation.

Inflation isn’t a big deal until you’re leveraged to the hilt. Then it sets off a chain reaction.

IMO, the big trigger is the petroyuan oil contract. That is a Big Deal. Coming March 25th, to an oil market near you.

Compound that with the all-time record issuance of debt coming down the pipe all year, the Fed no longer buying bonds, and actually selling them, when the real economy is pulling back, and you have a time bomb.

You know who the biggest buyer of stocks was last year? The companies themselves. The biggest buyer of bonds? The Fed.

We are being pillaged. The rich are cashing in their chips and burning down the casino. I’d call it a conspiracy, but most of the players are complete imbeciles.

[Martin Hash]

I agree that the outcome will be even more wealth stratification because The 1% almost exclusively benefit from bailouts. For example, the students who were going to default on their student loans, they don't have any money so a bail-out isn't going to them. Bail-outs go to people who have money at risk which the vast majority do not, except for supposed pensions and that has its own set of issues.

[Fife]

[SuburbanFarmer]

Yep. The engine is seized up, and they’ve flooded it with gas.

[SuburbanFarmer]

https://www.zerohedge.com/news/2018-02- ... llion-2017

$1.2 trillion. That’s simply staggering.

It’s larger than the size of the entire Australian economy… and constitutes a loss of more than $2.2 million per minute.

This is not a conspiracy theory or irrational fantasy.

This is the Treasury Secretary of the United States of America publicly announcing that the federal government lost $1.2 trillion on page ‘i’ of its annual financial report.

What’s even more alarming is that 2017 was a great year.

There was no war. No recession. No epic financial crisis.

In his introductory letter, in fact, the Treasury Secretary proudly stated that “[t]he country enjoyed a pick-up in [economic] growth in 2017. Unemployment is at its lowest level since February 2001, consumer and business confidence are at two-decade highs, and inflation is low and stable.”

In short, everything was awesome in 2017.

Even the government’s overall revenue was a record high $3.3 trillion for the year.

Yet despite all that good news… despite all those positive developments and record revenue… they STILL managed to lose $1.2 trillion.