It’s all about the Total Debt including Global (up 57$T)!

Crazy politics is a consequence of a slow growth / debt fueled economy. As debt goes up gdp slows:

Debt Denialists

Debt Slows Economic Growth

FROM LINK ABOVE: “Doom Loop” of cheap financing leading to excessive debt growth followed by busts, bailouts, and more cheap credit to continue the cycle.

The doom loop…I couldn’t have said it better. Total debt becomes associated to public debt as the government keeps bailing out the private debt. Also global debt becomes an issue in the sense that debt growth in China drives KFC and Disney products in China and thereby US exports. From McKinsey &Company:

2

ASIDE:

I say recession next year. Good news that this article also confirms recession-

http://reason.com/archives/2016/09/07/making-the-most-of-the-next-re

 

 

 

 

This entry was posted in Uncategorized. Bookmark the permalink.