We’re getting less and less incremental GDP per dollar of debt. SLL argues that the marginal value of debt has already gone negative. Harry Dent says the zero point arrives next year. Either way, expanding debt only compounds our economic travails. From Harry Dent at wolfstreet.com:
Forty-five years and counting: We’ve been on a debt spree since the early 1970s when we went off the gold standard, covering every possible angle. Trade deficits, government deficits, unfunded entitlements, private debt – you name it! Our total debt has grown 2.5-times GDP since 1971.
How could economists not see this as a problem? How is this the least bit sustainable?
It isn’t. We’re hurtling toward a massive financial crisis, and all we have to show for it are financial asset bubbles destined to burst. And when they do, they’ll wipe out the artificial wealth they’ve created for many decades… in just a…
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