Tag Archive: currency debasement

Is a Major Currency Debasement Ahead?

The U.S. Fed and other global central banks are in the process of easing monetary policies again. Although interest rates got nowhere near previous levels during the Fed’s recent tightening cycle, the central bank has decided that it is time to start cutting again. The Fed is not cutting from only 2.5% instead of 5.5%, however. The ECB tomorrow will present its latest plans to boost the region’s economy which will likely include a bazooka of rate cuts and fresh QE. Other central banks are... Continue Reading

Global Debt Has Reached a New High

According to the IMF, global debt has reached a new peak. Not only that, but according to the fund, there are three countries responsible: The U.S., China and Japan. These nations account for over 50% of total global debt, and China alone is responsible for about 75% of new private debt since the financial crisis. The numbers are nothing short of staggering: The IMF’s fiscal monitor reportedly stated that total debt reached $164 trillion in 2016. That figure, incidentally, represents 225% of global gross domestic... Continue Reading

Will Added Debt Finally Become Too Much?

Regardless of what you may think about the Trump administration’s tax reforms, the current levels of U.S. debt are not sustainable. With over $20 trillion in debt already, the nation could potentially add to the deficit as it lowers tax revenues. The argument for such a move is that increased economic activity and production will pave the way for that deficit to be brought back under control. Even if that proves to be the case, the problem with debt is that not only does the... Continue Reading