This graphic shows the gigantic size of US debt, compared with revenue. Another disturbing trend is the large and persistent deficits of recent years. What is not shown is the future debt of unfunded government programs, such as Obamacare (the Patient Protection and Affordable Care Act). These programs are estimated to total around USD90 trillion. That is in addition to the USD17 trillion shown in the chart.

USDEBT

Graphic Courtesy of Ricochet.com

There is no way this Keynesian madness, the so-called “new normal”, is going to end well. Even inflation can’t save us now, perhaps default can.

The US is not alone.  Europe is an absolute basket case, a region where  you are now penalised for keeping cash in the bank. China of course has mountains of debt, puts the US to shame really.

In all countries statistics are manipulated to show results that Central Banks want. In the US, CPI does not include energy and food and is loaded with outrageous heuristic (meaning “guesswork”) nonsense. Who knows what inflation really is.

Best investment opportunities over the longer tern look like agriculture, energy, rural land, water and monetary metals. More on this coming up.

 

 

 

24 June 2014 Macro