Interesting Denninger Post Today

If you haven’t read the Market Ticker today, you should. I don’t always agree with absolutely everything he writes but, as a former business owner, I know that the administration policies are absolutely killing what business activity remains.

Markets eventually suss out the truth. The heroin high of credit expansion always feels real good at the time you take up the new credit, but the compound annualized growth rate of DEBT in the system, not including the off-balance-sheet Federal programs, has been 8.78% since 1953!

In the same time the compound growth rate of GDP has been 6.81%.

This is the definition of a Ponzi Scheme – the premise that one can growth GDP forever (and business plans are made and predicated on that) but also that credit can grow faster than GDP forever.

Neither of those premises is true, and having run this scam for sixty years we’ve now found the end of the rope – and it’s 20 stories up from street level.

For more than three years I have been banging this drum. It is delightful to finally read these facts in a mainstream media publication, but at the same time rather sad that it took this long.

Buckle up folks.

I don’t think people will be pleased when they find out that they’ve been royally screwed by politicians and bankers.

Here’s a Taiwanese video of how I feel about MEEEEchelle’s trip to Spain courtesy RickZ of GCP:


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