AI
Thursday, October 10, 2019 8:45:19 AM
Bigworld, Trying to look past the DC circus, the big question is how long do we have before the US financial system finally comes unglued for good? Debt is the problem, and we're well into the final parabolic phase (chart below).
How long will they be able they delay the day of reckoning? Attempts at 'normalization' have failed, and the Fed is buying it's own debt again (QE), and this will become a permanent fixture. The traditional buyers of US debt (China, Japan, Saudis, Europe) are no longer showing up at Treasury auctions as before, and who can blame them?
The Fed is going back to ZIRP, and then will come NIRP. There won't be much stimulus help coming from the fiscal side since they already had the big tax cut, and the budget deficit is already $1 tril plus.
To buy time, avoiding a recession should be job #1, and major disruptions like trade wars and political instability should be avoided at all costs. But instead, Trump and DC are doing all they can to cause the recession.
Once the recession takes hold, that's when the financial stresses really begin, and a 2008 type crisis is likely. The tapped out Fed will throw up their hands, and in comes the SDR system, and with it a 60% drop in the US standard of living.
The whole process could be delayed, but avoiding a recession is the key.
Are you listening Donald? Sign the deal with China and end this idiotic trade war. And Pelosi/Dems, do us all a favor and disappear for a few decades.
How long will they be able they delay the day of reckoning? Attempts at 'normalization' have failed, and the Fed is buying it's own debt again (QE), and this will become a permanent fixture. The traditional buyers of US debt (China, Japan, Saudis, Europe) are no longer showing up at Treasury auctions as before, and who can blame them?
The Fed is going back to ZIRP, and then will come NIRP. There won't be much stimulus help coming from the fiscal side since they already had the big tax cut, and the budget deficit is already $1 tril plus.
To buy time, avoiding a recession should be job #1, and major disruptions like trade wars and political instability should be avoided at all costs. But instead, Trump and DC are doing all they can to cause the recession.
Once the recession takes hold, that's when the financial stresses really begin, and a 2008 type crisis is likely. The tapped out Fed will throw up their hands, and in comes the SDR system, and with it a 60% drop in the US standard of living.
The whole process could be delayed, but avoiding a recession is the key.
Are you listening Donald? Sign the deal with China and end this idiotic trade war. And Pelosi/Dems, do us all a favor and disappear for a few decades.
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