Thursday, December 10, 2020

Rule by the disturbed.

The debt that washes over the world is astronomical. Fictions like modern monetary theory are absurd, specious attempts to put lipstick on that pig of current reckless, stupid, and irresponsible practice by the bestest of the most bestest Wunderkindern who pour forth from our vaunted institutions of higher learning. (Scare quotes on back order otherwise they'd festoon the last sentence.)

Current enlightened practice is to kick the can down the road, to use technical economic terminology, but arithmetic is soon going to burst forth from the body politic in a way that would scare even the formidable Sigourney Weaver. "Remember me?"

The fact that the political class is mum about how this is going to turn out and loathe to discuss anything that might be identifiable as a planeroonie is kind of like a klooh that there is a giant green weenie in all our futures. The closest thing is "The Great Reset" which has the half life of the Manson Gang way I see it and seems to have basically the same methods in mind. I guess there's a magic wand in there somewhere to make Mr. Killer Debt just go away.

Global debt is expected to soar to a record $277 trillion by the end of the year, according to the Institute of International Finance. Developed markets’ total debt—government, corporate, and households—jumped to 432 percent of GDP in the third quarter. Emerging market debt-to-GDP hit nearly 250 percent in the third quarter, with China reaching 335 percent, and for the year the ratio is expected to reach about 365 percent of global GDP. Most of this massive increase of $15 trillion in one year comes from government and corporates’ response to the pandemic. However, we must remember that the total debt figure had already reached record highs in 2019, before any pandemic and in a period of growth.[1]
It's probably nothing.

[1] "The "Great Reset" And Plans For A Global War On Savings." By Daniel Lacalle (The Mises Institute), ZeroHedge, 12/9/20 (emphasis removed).

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