WHAT THE FUCK IS GOING TO HAPPEN?
>The Congressional Budget Office projects that interest payments on the federal debt will grow from $316 billion this year to $915 billion by 2028. Not only does the new debt need to be financed, but trillions of dollars in old debt will also need to be refinanced when it comes due.
>And then there is household debt. After the last financial crisis, American consumers made a concerted effort to save more, borrow less and pay off credit card and auto loan debt. But memories are short, and a decade later, mortgage debt, credit card debt, student loan debt, and car loan debt are all, once again, at record levels and growing briskly. Among the 38 percent of households with credit card debt, the average balance is nearly $11,000, according to ValuePenguin, based on data from the Federal Reserve. The Consumer Financial Protection Bureau recently reported that, among subprime borrowers, credit card debt is up 26 percent in just the past two years.
>Finally, there is the debt that investors large and small take on to buy stocks, bonds, derivatives and other securities. That’s also at an all-time high.
>As Stephen Blumenthal of CMG Capital sees it, this is the “mother of all credit bubbles.” And with the Federal Reserve and central banks now bringing the supply and cost of credit back to normal levels, and with demand for credit continuing to soar, heavily indebted businesses, governments and households will soon be hit with big increases in interest payments. As interest payments begin to crowd out spending on other things, the economy will slow. We’ve seen this self-reinforcing downward cycle before, and it invariably leads to market sell-offs, loan defaults, bankruptcies, layoffs and, quite likely, recession.
https://www.washingtonpost.com/business/economy/beware-the-mother-of-all-credit-bubbles/2018/06/08/940f467c-69af-11e8-9e38-24e693b38637_story.html
https://archive.fo/ectnO