With so many sub-prime auto loans, and a high percentage of leasing over purchasing, it seems like the math has finally caught up to the reality on the streets. Literally. The declines are massive (except the one that gained just a tiny bit of value).
Simon Black shares this new strategy for royalties…
“No yield” beats “negative yield” every time, so goldbugs listen for the crickets…
Things have gone from “Awesome”, to “hold-on a Sec”, to now this…
Cut through the “Flagrant misrepresentation of reality for propaganda” and “outright fraud”…
It’s already at $1…
Then there’s China, where total debt has ballooned by 465% over the past decade.
China’s real estate market has grown become so ridiculous that a new project in the city of Shenzhen launched over the weekend selling tiny “pigeon lofts” of roughly 65 square feet for about $132,000.
The building sold out in a single day.
According to the Bond King Bill Gross, this is a $10 TRILLION supernova that will explode…
The U.S. government is now borrowing an astonishing 8 trillion dollars a year, and you are about to see the hard numbers that prove this.
The only way that this game can continue is if the U.S. government can continue to borrow gigantic piles of money at ridiculously low interest rates.
And our current standard of living greatly depends on the continuation of this game.
If something comes along and rattles this Ponzi scheme, life in America could change radically almost overnight.
We haven’t seen complete breakdowns in junk bond prices or treasury yields yet, but the dominoes are set up and the first one is starting to wobble.
In danger of dying from too much debt.
Today, the world economy is in uncharted territory.
Never before has the developed world carried this much debt.
Never before have the central banks of those same countries expanded their balance sheets so much.
Never before has so much sovereign debt been outright monetized. Never before have major financial institutions been officially designated as “too big to fail” and thereby been granted special license to assume gigantic risks.
Dr. Lacy Hunt, economist and current executive vice president of Hoisington Investment Management Company, expects the macroeconomic situation to get worse from here:
What would you say if I told you that Americans are nearly 60 TRILLION dollars in debt? Well, it is true. When you total up all forms of debt including government debt, business debt, mortgage debt and consumer debt, we are 59.4 trillion dollars in debt. That is an amount of money so large that it is difficult to describe it with words. For example, if you were alive when Jesus Christ was born and you had spent 80 million dollars every single day since then, you still would not have spent 59.4 trillion dollars by now. And most of this debt has been accumulated in recent decades. If you go back 40 years ago, total debt in America was sitting at about 2.2 trillion dollars.
Somehow over the past four decades we have allowed the total amount of debt in the United States to get approximately 27 times larger. This is utter insanity, and anyone that thinks this is sustainable is completely deluded.
We are living in the greatest debt bubble of all time, and there is no way that this is going to end well.
Just check out the chart…
Paul Mylchreest has released the December Thunder Road Report, titled Inflationary Deflation: Creating a Bubble in New Money. The report is 75 MUST READ pages detailing the END GAME to the largest debt bubble in the history of the world: a massive cost-push hyperinflationary collapse of the US dollar.
This is the biggest debt bubble in history. Each time DEFLATIONARY forces re-assert themselves, offsetting INFLATIONARY forces (monetary stimulus in some form) have to be correspondingly more aggressive to keep systemic failure at bay. The avoidance of a typical deflationary resolution of this Long Wave is incubating a coming wave of inflation. This will not be the conventional demand pull inflation understood by most economists.
The end game is an inflationary/currency crisis, dislocation across credit and derivatives markets, and the transition to a new monetary system, with a new reserve currency replacing the dollar. This makes gold and silver the go-to assets for capital preservation.
Full 75 page December Thunder Road Report below: