The mainstream press is finally reporting what has been common knowledge among lesser know blogs; the world is up to its neck in debt. They have passed the debt from banks to countries and there is no where to get a bailout from. The fabricated source of much of the debt – securitised mortgages – has vaporised and will never come back. The level of US debt to GDP exceeded 1929 in the early 2000’s (after the dot comm crash) and went ballistic – it was something like 50% higher than the 1929 figure and way higher than anything seen between 1929 and 2000.
The head of the Texas Federal Reserve said total US debt was $99 trillion – 7 x GDP. UK and other countries are in a similar mess.
It all points to one thing – a long hard slog to pay down debt in every shape or form for years, world-wide. A big dose of inflation to wipe away the debt and impoverish us all is likely. Stagflation, 1970’s style and worse.