A “Saturated World”…” If you think past where we are now then you understand Richard Russell’s term “inflate or die” is where we are headed.”
By Bill Holter
GoldSeek.com
Wednesday, 21 October 2015
For many years I have written about “debt saturation” being the ultimate problem and the end game to the current system. Back in 2007 I wrote how we were facing a solvency problem rather than a liquidity problem. When the Treasury and Fed treated the 2008 debacle with more liquidity, I was adamant they were treating the wrong disease with the wrong cure. Fast forward to present day, we should soon see what the “disease” actually was, how incurable it now is and how devastating to our way of life it will be.
The following charts do not in any way say “this is it”, meaning the saturation level is here and now. They do however show you what the problem is and how we have gotten to this point in time.
What does tell you the problem is here and now are your own eyes. If you are willing to look, you will see various European nations without the ability to issue more debt while Japan’s debt to GDP ratio has long ago passed the banana republic threshold. Look around the United States and you will see various cities and states where revenue can no longer support even debt service, never mind pay down any principal. If you look at the federal government debt, you will see foreigners are now sellers. The big buyer is the Fed itself. This is THE definition of monetization. There is no other alternative.
The Rest…HERE
