Category Archives: Economy

Global Debt To Hit All Time High $255 Trillion, 330% Of World GDP, by Tyler Durden

$255 trillion is just the stated, nominal debt, and doesn’t include unfunded liabilities, contingent liabilities, or derivatives. From Tyler Durden at zerohedge.com:

There are three certainties in life: death, taxes and that global debt will keep rising in perpetuity.

Addressing the third, yesterday the Institute of International Finance reported that global debt has now hit $250 trillion and is expected to hit a record $255 trillion at the end of 2019, up $12 trillion from $243 trillion at the end of 2018, and nearly $32,500 for each of the 7.7 billion people on planet.

“With few signs of slowdown in the pace of debt accumulation, we estimate that global debt will surpass $255 trillion this year,” the IIF said in the report.

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Mr. Bill and the Marxists, by Becky Akers

There’s nothing quite as revolting as honestly acquired wealth apologizing for it. From Becky Akers at lewrockwell.com:

Marxism has claimed its myriads of victims, but none of them are sorrier or more craven than American billionaires. These guys don’t just turn the other cheek to communists: they kneel and kiss their butts. Then they carefully wipe any spittle from their enemies’ posteriors, chirping about democracy and equality. As if abject submission has ever protected anyone anywhere.

I don’t understand the relationship between staggering affluence and cojones, but for sure it’s an inverse one. You’d think it would be the other way round: I mean, how many folks will tell a billionaire to take a hike? Even fewer will risk punching him out.

Surely Mr. Billionaire understands this; surely the hordes he employs, whether professionally or personally, have shown him that when boots are licked, it’s the Guccis on his own feet, not the hoi polloi’s $30 Frogg Toggs, that wind up glistening.

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The Holy-Cow Moment for Subprime Auto Loans; Serious Delinquencies Blow Out, by Wolf Richter

The auto industry is discovering the folly of lending to people with iffy prospects of paying the loan back. From Wolf Richter at wolfstreet.com:

But it’s even worse than it looks. And this time, there is no jobs crisis. This time, it’s the result of greed by subprime lenders. 

Serious auto-loan delinquencies – auto loans that are 90 days or more past due – in the third quarter of 2019, after an amazing trajectory, reached a historic high of $62 billion, according to data from the New York Fed today:

This $62 billion of seriously delinquent loan balances are what auto lenders, particularly those that specialize in subprime auto loans, such as Santander Consumer USA, Credit Acceptance Corporation, and many smaller specialized lenders are now trying to deal with. If they cannot cure the delinquency, they’re hiring specialized companies that repossess the vehicles to be sold at auction. The difference between the loan balance and the proceeds from the auction, plus the costs involved, are what a lender loses on the deal.

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How the Homeless Crisis Could Soon Become an Epidemic, by Doug Casey

Many of the currently homeless were once members of the middle class who ran into hard times during the 2008-2009 financial crisis or its aftermath. From Doug Casey at internationalman.com:

International Man: There is a growing homeless crisis in liberal West Coast cities, including San Francisco, Portland, Seattle, and many others. People living on the street are overrunning these cities.

Residents must deal with human feces, syringes, disease, and filth every day. In some areas, it’s worse than the dirtiest slums of Brazil, Kenya, and India.

How did this happen?

Doug Casey: Well, taking a long-term view, I see it as part of the continuing decline of Western civilization.

The West has always been distinguished relative to the rest of the world by its order, its cleanliness, its respect for property rights. These things are all going by the wayside. We were a middle class society with “bourgeois” values, essentially Boy Scout virtues. But these things are now held in contempt, even while the middle class is being squeezed. “Ground between the millstones of taxation and inflation,” as the phrase attributed to Lenin puts it.

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Trump Impeachment And The Civil War Scenario, by Brandon Smith

Trump is the globalist’s scapegoat for the upcoming economic collapse. As such, they probably don’t want to see him impeached. From Brandon Smith at alt-market.com:

There has been a lot of talk the past year about a civil war in the US, so much so that even the mainstream media is pushing the concept lately. A poll from Rasmussen in 2018 claimed that 31% of US voters believed that America would see a second civil war within the next five years. A more recent poll from The Institute Of Politics And Public Service shows that 7 out of 10 voters believe the US is two-thirds of the way towards civil war.

New talk of “impeachment” over the Ukraine issue has stirred the soup even further as some conservatives argue that if Trump is removed from office a war will erupt.

I want to be absolutely clear and state that I remain highly skeptical that the impeachment circus is anything more than another distraction for the public, and I believe that it will go nowhere (just like Russiagate).  That said I do think there is a marginal chance of a 4th Gen play here by the globalists. A civil war, if directed and manipulated in the right way, could benefit the elites greatly as long as it’s combined with a few other ingredients.

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If Impeachment Fails, Will The Elite Crash The Economy In Order To Prevent Four More Years Of Trump? by Michael Snyder

The impeachment will fail and the economy will crash—it doesn’t need any help from the elite. Actually, we’ve been in a slow motion crash for at least 10 years, so the proper terminology is that the crash will accelerate. From Michael Snyder at theeconomicollapseblog.com:

By now, it is exceedingly obvious that the global elite absolutely hate Donald Trump.  No president in U.S. history has faced such a relentless assault by the corporate media, and there have been attempts to sabotage his presidency at every turn.  Miraculously, Trump has survived all of these attacks so far, but now the specter of impeachment looms large over his administration.  The Democrats have a solid majority in the U.S. House of Representatives, they are working quickly toward drafting articles of impeachment, and they actually hope to have Trump impeached by Christmas Day.  But in order to have Trump removed from office, 67 votes will be needed in the Senate, and right now Democrats only control 47 of those seats.  It was always going to be tough for Democrats to get 20 Republicans in the Senate to turn on Trump, but they have bungled this process so badly that they might not end up getting any at all.

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Is The ‘Mother of all Bubbles’ About to Pop? by Ron Paul

Is the repo market the canary in the coal mine for global financial markets? From Ron Paul at ronpaulinstitute.org:

When the New York Federal Reserve began pumping billions of dollars a day into the repurchasing (repo) markets (the market banks use to make short-term loans to each other) in September, they said this would only be necessary for a few weeks. Yet, last Wednesday, almost two months after the Fed’s initial intervention, the New York Federal Reserve pumped 62.5 billion dollars into the repo market.

The New York Fed continues these emergency interventions to ensure “cash shortages” among banks don’t ever again cause interest rates for overnight loans to rise to over 10 percent, well above the Fed’s target rate.

The Federal Reserve’s bailout operations have increased its balance sheet by over 200 billion dollars since September. Investment advisor Michael Pento describes the Fed’s recent actions as Quantitative Easing (QE) “on steroids.”

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