Something big is coming … The Mentions of a "Soft Landing" have Surged to Their Highest Levels.
Historically, that has preceded recessions. 🤨 pic.twitter.com/Co1C5yDJOF
— Wall Street Silver (@WallStreetSilv) October 3, 2023
Rickards: Something “Big and Stupid” Is Coming…
With debt levels reaching all-time highs in major developed and developing economies, and with debt-to-GDP ratios also in record territory (not including contingent liabilities such as Social Security, health care and other entitlements, which make matters worse), it seems time to consider just how nations will deal with this problem.
The debt crisis may not be imminent, but it is unavoidable. When it happens, it may present the greatest financial disaster of all time. It’s never too soon for investors to consider the fallout.
When you issue debt in a currency you print, there’s no need for default in the sense of non-payment.
You can just have the central bank buy the debt (by printing money). This is the situation today in the U.S., Japan, the U.K. and the European Monetary Union (the countries that use the euro). They all have huge debt burdens, but they all have central banks that can simply buy the debt by printing money to avoid default.
Marc Faber: Stock Markets Are Beginning To Reflect The Real Economic Conditions Around The World
The 30-year is now at 4.86%.
I don't think anyone realizes just how detrimental this is to equity risk premium.
With rates here, and the pe of $SPX at a historically high 29. there is literally NO upside to equities. pic.twitter.com/RIWnxGdcSB
— Swordfishvegetable (@Swordfishv44183) October 3, 2023