Harsh truths about the Federal debt, showing how Left & Right lie to us

Summary: Each presidential campaign season the federal debt becomes an issue, with the debate consisting largely of bogus soundbites. Each election sees that the federal debt has not only grown, but has grown faster than the US economy -- with little to show for it (e.g., our public infrastructure rots). This will not end well … Continue reading Harsh truths about the Federal debt, showing how Left & Right lie to us

Fact & myth about the debt supercycle, a story of modern America

Summary: The effects of debt are among the most widely misunderstood factors of macroeconomics. The almost delusional writings of perma-bears and conservatives have demonized debt, while economists often regard high debt levels with complacency. Yet economists have learned much about dynamics of debt. This post looks at this cutting edge of economic theory, very relevant … Continue reading Fact & myth about the debt supercycle, a story of modern America

Stratfor: Italy’s Shaky Financial Future

Summary: The debt supercycle is a global phenomenon, with Italy one of the most afflicted nations. High levels of debt plus slow growth makes a toxic combination. Here Stratfor examines the numbers and their implications. “If something cannot go on forever, it will stop.” — Herbert Stein’s Law (US economist, 1916-1999). Italy's Shaky Financial Future … Continue reading Stratfor: Italy’s Shaky Financial Future

Auto loans are a driver of the expansion, but might be running out of gas

Summary:  Modern history consists to a scary extent of boys with toys. Powerful tools used irresponsibly: Atomic weapons, nuclear power plants, debt, and (God help us, genetic engineering). The decades of the Cold War featured several terrifying close calls with nukes. Now we're suffering the effects of imprudent debt accumulation, and are likely to for … Continue reading Auto loans are a driver of the expansion, but might be running out of gas

Rising consumer debt driving the recovery: boon or bane?

Summary: Have we learned much from our 2008 brush with another depression? Look at the growth in subprime education and auto loans, and decide. Will we reforge the fetters on lenders forged in the New Deal to prevent events like 2008? Failure to learn is one sin that Nature always punishes. . Contents Borrowing as … Continue reading Rising consumer debt driving the recovery: boon or bane?