Maggie's Farm

Ah yes, VDH qua Cassandra. I am sure our ruling masters don't believe a word of it, and why should they? It runs counter to The Narrative and things are going swimmingly. yes?

I have been reading these types of columns for years and the sky hasn't fallen. Like the feared global warming disaster, the prophecy is open ended.

Conventional wisdom says if thing can't go on as they are, they won't. If that's the case how do we end up? Will we go the way of Argentina? Venezuela? Soviet Union to Russia? Romania? or something altogether different?

Who knows? Your guess is as good as anyone's.

But for now all is well. The music is playing and the wealth transfer checks are being cashed.

From American Thinker:

While we focus on domestic politics, the world economy sends red-light danger warnings
By Thomas Lifson

The world’s economy is in deep trouble. Those jobs that everyone, led by Donald Trump, wants to bring home are evaporating overseas. The U.S. is far from the only nation to use government debt to try to keep its economy afloat. In fact, we’re following Japan in that path, which has been stagnating for two and half decades as its government throws borrowed money into its economy to keep total demand from crashing –

The problem with debt is that someday it has to be repaid, or else the system collapses.

Consider this from Zerohedge:

“We’re digging a great big hole that is likely to cave in on us before we manage to claw our way back out of it.”

“US nonfinancial debt rose 3.5 times faster than GDP last year. (Nonfinancial debt is the sum of household debt, business debt, federal debt, and state and local government debt.)”

“The Federal Reserve, the European Central Bank, the Bank of Japan, and the People’s Bank of China have been unable to gain traction with their monetary policies…. Excluding off balance sheet liabilities, at year-end the ratio of total public and private debt relative to GDP stood at 350%, 370%, 457% and 615%, for China, the United States, the Eurocurrency zone, and Japan, respectively…. The debt ratios of all four countries exceed the level of debt that harms economic growth. As an indication of this over-indebtedness, composite nominal GDP growth for these four countries remains subdued. The slowdown occurred in spite of numerous unprecedented monetary policy actions—quantitative easing, negative or near zero overnight rates, forward guidance and other untested techniques.”

If you don’t think another potential economic crisis, perhaps even bigger, is brewing, you are kidding yourself. The timing is uncertain, but all the signs are there.

http://www.americanthinker.com/blog/2016/04/while_we_focus_on_domestic_politics_the_world_economy_sends_red_light_danger_warnings.html