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Gold And The Debt Crack-Up Boom

The stock market has entered the “melt-up” phase that characterizes the final stage of a rampant stock bubble – or any bubble for that matter. The stock market is more overvalued than at any point in history using just about any traditional valuation metric. At this point, the stock market has become a function of money managers chasing price momentum. They are doing nothing more than gambling with other people’s money in the hopes that they’ll be able to unload their stock purchases at an even higher level on other gamblers. Pulling back the cloud of propaganda that surrounds economic […]

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World Debt Is Rising Nearly Three Times As Fast

Some nasty dark clouds are forming on the financial horizon as total world debt is increasing nearly three times as fast as total global wealth. But, that’s okay because no one cares about the debt, only the assets matter nowadays. You see, as long as debts are someone else’s problem, we can add as much debt as we like… or so the market believes. Now, you don’t have to take my word for it that the market only focuses on the assets, this comes straight from the top echelons of the financial world. According to Credit Suisse Global Wealth Report […]

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The Household Debt Ticking Time Bomb

I fully expect the Government’s Census Bureau to post a mind-blowing headline retail sales number for December.  Hyperbolic headline economic statistics derived from mysterious “seasonal adjustments” based on questionable sampling methodology is part of the official propaganda policy mandated by the Executive Branch of Government. But I also believe that retail sales were likely more robust than saner minds were expecting because it appears that households have become accustomed to the easy credit provided by the banking system to make ends meet. Borrow money to “spend and pretend.”  The Fed reported that consumer credit hit an all-time record in November.  […]

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Study Finds That 22 Percent Of Bitcoin Investors Are Using Debt To Fund Their Investments

Investing in cryptocurrencies such as Bitcoin, Ripple, Ethereum and Litecoin is extremely risky, and experts all over the country are warning that people should only invest what they are willing to lose.  Unfortunately, many are getting swept up in the current euphoria surrounding cryptocurrencies and are not listening to that very sound advice.  A disturbing new survey that was just released found that 22 percent of all Bitcoin investors are either directly or indirectly investing in Bitcoin with borrowed money… According to LendEDU, a personal loan research firm, more than 18 percent of Bitcoin investors have used borrowed money to […]

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An “Unprestigious” Preview of Debt Deflation

Carillion PLC Deflation

An “Unprestigious” Preview of Debt Deflation By Elliott Wave International Evidence: Your Bond Fund Is Riskier Than You Think Debt deflation has taken down a huge multinational builder. Pitfalls in the bond market are growing too risky for bond investors to ignore. Learn what you need to know in a free, new report from EWI’s Murray Gunn — “Your Bond Fund: It’s Riskier Than You Think.” Learn more and register for free! This article was syndicated by Elliott Wave International and was originally published under the headline An “Unprestigious” Preview of Debt Deflation. EWI is the world’s largest market forecasting […]

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Global Debt Exceeds $200 Trillion and is Rising Rapidly

What storm? The Dow Jones Industrial Average (DOW) reached another all-time high. Interest rates in the U.S. are yielding multi-decade lows, some say multi-century lows. Trillions of dollars in global sovereign debt have negative yield and European junk bonds yield less than 10 year U.S. treasuries. “Official” unemployment is low. Borrowing is inexpensive. Things are good, so they say! I Doubt It! Do you believe the above is a fair and accurate representation of our economic world? If so, how do you explain the following? Global debt exceeds $ 200 trillion and is rising rapidly. This massive debt will NOT […]

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The Debt Bubble Is Beginning To Leak Air

“The current state of credit card delinquency flows can be an early indicator of future trends and we will closely monitor the degree to which this uptick is predictive of further consumer distress.” – New York Fed official in reference to rising delinquency rate of credit cards. The recent sell-off in junk bonds likely reflects a growing uneasiness in the market with credit risk, where “credit risk” is defined as the probability that a borrower will be able to make debt payments. This past week SocGen’s macro strategist, Albert Edwards, issued a warning that the falling prices of junk bonds might be “the […]

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Goodbye American Dream: The Average U.S. Household Is $137,063 In Debt, And 38.4% Of Millennials Live With Their Parents

Once upon a time the United States had the largest and most vibrant middle class in the history of the world, but now the middle class is steadily being eroded.  The middle class became a minority of the population for the first time ever in 2015, and just recently I wrote about a new survey that showed that 78 percent of all full-time workers in the United States live paycheck to paycheck at least part of the time.  But most people still want to live the American Dream, and so they are going into tremendous amounts of debt in a […]

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Venezuela Defaults On A Debt Payment – Is This The First Domino To Fall?

Did you know that Venezuela just went into default?  This should be an absolutely enormous story, but the mainstream media is being very quiet about it.  Wall Street and other major financial centers around the globe could potentially be facing hundreds of millions of dollars in losses, and the ripple effects could be felt for years to come.  Sovereign nations are not supposed to ever default on debt payments, and so this is a very rare occurrence indeed.  I have been writing about Venezuela for years, and now the crisis that has been raging in that nation threatens to escalate […]

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Will China Bring an Energy-Debt Crisis?

It is easy for those of us in the West to overlook how important China has become to the world economy, and also the limits it is reaching. The two big areas in which China seems to be reaching limits are energy production and debt. Reaching either of these limits could eventually cause a collapse. China is reaching energy production limits in a way few would have imagined. As long as coal and oil prices were rising, it made sense to keep drilling. Once fuel prices started dropping in 2014, it made sense to close unprofitable coal mines and oil […]

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