US companies now face the highest debt levels on record, at more than $10.5 trillion. In 40 years the amount of corporate bonds outstanding has grown by over 2,000%, from 16% of US GDP in 1980, to 50% of GDP in 2020.
The components of GDP are an ominous confirmation that the US is engaging in aggressive restocking which could soon lead to a deflationary liquidation wave.
It's really about a non-government currency. And people should have that ability to choose and let the free market decide what the best currency is or the best currencies.
And why will 2022 play out this way? Because just as in 2010 and 2019, The Fed will once again be revealed as posing charlatans. The curtain will be pulled back, and all will be reminded again that..
However, the Fed is backing off from stimulus. If it actually tightens as Fed Chair Paul Volcker did, we will avoid hyperinflation; but we will not avoid the recession that is already forming.
Bill Holter discusses the likely outcome of a Fed tightening cycle.
With the massive levels of debt in the system, raising rates will be a short term effort.
The conference room in the New York Fed was located just off the main trading floor, and its doors were open during meetings so people could quietly go in and out. The room was anchored by a large table..
The gold stocks get no respect. With respect to gold, the gold stocks are cheap. The Gold/HUI ratio is at 7.44, well entrenched at levels suggesting to us that gold stocks remain cheap relative to gold.
