Death Spiral Underway
Gordon T. Long has an interesting piece entitled The Economic Death Spiral Has Been Triggered. He concludes: The Basel BIS Bankers fully understand the underpinnings of…
Gordon T. Long has an interesting piece entitled The Economic Death Spiral Has Been Triggered. He concludes: The Basel BIS Bankers fully understand the underpinnings of…
The Treasury is out of money, but not out of games. According to Zerohedge.com: Now that it has finally been made clear that in order…
I have used the term “Debt Death Spiral” which I think might be more appropriate. Richard W. Fisher, Dallas Federal Reserve president, speaks in terms of a “budgetary death spiral.” There is little reason to quibble over the terms — one focuses on causes, the other effects.
Technically, one could argue that it might be possible to end the budgetary spiral and not avoid the debt death spiral. That argument would be based on a “we have passed the tipping point” perspective whereby the refusal for the market to fund new and rollover debt and the rise in interest rates would be enough to continue the debt death spiral.
The article below is from Doug Ross and provides a discussion of our situation. Unfortunately, his lead sentence is likely to be true regardless of what Congress does. Enjoy Mr. Ross’ analysis:
Think Road Warrior without the amenities.
There cannot be robust direct investment in the United States without confidence in the nation’s ability to reverse its budgetary death spiral, especially the inexorable accumulation of national debt and unfunded liabilities of Medicare and Social Security. [Ed: Oh, you mean the programs Harry Reid, Chuck Schumer and the execrable Kris Van Hollen are trying to destroy?]
…The need to break the back of that spiral is as dire now as was the need for Paul Volcker
The following post is an excellent one from Righteous Investor. The author thinks much like I do and has more of an investment-focused website for…
Must Watch Kyle Bass Interview: “I Don’t Know How I Can Be Long Stocks” Submitted by Tyler Durden on 08/17/2010 12:21 -0500 The one must watch…
The U.S. government moves closer to a debt death spiral. Arguably, we are already in the beginning phase of this spiral as this rather scary…
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