Skip to main content

GREATEST CREDIT BUBBLE IN HUMAN HISTORY.

 "Still, the Congressional Budget Office warned in a June report that higher interest rates and the mounting national debt could lead the federal government’s net interest payments to spike to 6.7% of GDP by 2053."
“Such high and rising debt would slow economic growth, push up interest payments to foreign holders of U.S. debt, and pose significant risks to the fiscal and economic outlook; it could also cause lawmakers to feel more constrained in their policy choices,” the report’s authors explained.
Some critics have gone a step further in their warnings about the potential impact of an increasingly indebted U.S. government. Mark Spitznagel, founder of the hedge fund Universa Investments, told Fortune in August that we’re living through the “greatest credit bubble in human history.”
“We’ve never seen anything like this level of total debt and leverage in the system. It’s an experiment,” he said. “But we know that credit bubbles have to pop. We don’t know when, but we know they have to.”

SOURCE:
https://www.google.com/amp/s/fortune.com/2023/09/18/janet-yellen-national-debt/amp/

Comments

Post a Comment

Popular posts from this blog

Overview of the threat to the banking industry, with examples from recent bank collapses and persistent future risks:

1. Increasing cyber-attacks targeting financial data:  Cyber-attacks like the 2017 Equifax breach (a) expose sensitive financial data, leading to significant financial and reputational damage. 2. Rising competition from fintech and non-traditional financial institutions: Companies like PayPal and Square are disrupting traditional banking by offering innovative financial services. (b) 3. Regulatory changes impacting operations and profitability: The Dodd-Frank Act imposed stricter regulations on banks, affecting their operations and profitability. (c) 4. Economic downturns affecting loan repayment and default rates: The 2008 financial crisis saw a spike in loan defaults, leading to the collapse of major banks like Lehman Brothers. 5. Interest rate volatility impacting margins: Rising interest rates in 2023 led to significant losses in banks' securities portfolios, contributing to the collapse of Silicon Valley Bank². 6. Technological disruptions in payment systems and banking te...
Post a Comment
Read more

Man does not stand alone by A Cressy Marrison

The American scientist, A Cressy Morrison, Head of the Science Academy   in New York, says in his book "Man Does Not Stand Alone": Birds have the homing instinct. The robin that nested at your door may go south in the autumn, but will come back to his old nest the next spring. In September, flocks of many of our birds fly south,often over a thousand miles of open sea, but they do not lose their way. The homing pigeon, confused by new sounds on a long journey in a closed box, circles for a moment then heads almost unerringly for home. The bee finds its hive while the wind waving the grasses and trees blots out every visible guide to its whereabouts. This homing sense is slightly developed in man, but he supplements his meagre equipment with instruments of navigation.  We need this instinct and our brain provides the answer. The tiny insects must have microscopic eyes, how perfect we do not know, and the hawks, the eagle and the condor must have telescopic vision. Here...
1 comment
Read more

Zionism and Post-Holocaust Christian Theology: A Jewish Perspective. Mark Braverman

     Introduction of Mark Braverman: Mark Braverman is a Jewish-American psychologist, theologian , and prominent voice in the interfaith justice movement for Palestine . Raised in a strong Zionist tradition , Braverman underwent a personal and moral transformation after witnessing the realities of the Israeli occupation . He is the Executive Director of Kairos USA , an organization that mobilizes American Christians to support Palestinian rights. Braverman focuses on the intersection of theology, justice, and the Israeli-Palestinian conflict. His work critiques both Jewish and Christian theological frameworks that support Zionism and calls for a prophetic response rooted in human rights and reconciliation. His major works include Fatal Embrace: Christians, Jews, and the Search for Peace in the Holy Land and numerous essays on interfaith theology and justice. Mark Braverman. Opening Note: In the wake of the Holocaust , Christian theology took a new direction — see...
Post a Comment
Read more

US economic crisis.

Economic crisis of 2008 From Wikipedia, the free encyclopedia In 2008, the possibility of an economic crisis was suggested by several important indicators of economic downturn worldwide. These included high oil prices , which led to both high food prices (due to a dependence of food production on oil production) and global inflation ; a substantial credit crisis leading to the bankruptcy of several large and well established investment banks; increased unemployment ; and the possibility of a global recession developed. High commodity prices Medium term crude oil prices , (not adjusted for inflation) The decade of the 2000s saw a commodities boom , in which the prices of primary commodities rose again after the Great Commodities Depression of 1980-2000. But in 2008, the prices of many commodities, notably oil and food, rose so high as to cause genuine economic damage, threatening stagflation and a reversal of globalisation . [1] In January 2008, oil prices surpassed $100 a barrel ...
1 comment
Read more