{"id":26396,"date":"2017-10-02T12:13:10","date_gmt":"2017-10-02T17:13:10","guid":{"rendered":"http:\/\/olduvai.ca\/?p=26396"},"modified":"2017-10-02T12:13:37","modified_gmt":"2017-10-02T17:13:37","slug":"an-accountant-smells-a-rat-peter-diekmeyer","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=26396","title":{"rendered":"An Accountant Smells a Rat – Peter Diekmeyer"},"content":{"rendered":"
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An Accountant Smells a Rat – Peter Diekmeyer<\/a><\/h3>\n<\/div>\n
\"An<\/div>\n
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Twenty years ago Doug Noland was so worried about imbalances surrounding the dot.com boom that he began to title his weekly reports \u201cThe Credit Bubble Bulletin. Years later, he warned the world about the impending 2008 crisis.<\/p>\n

However a coming implosion, he says, could be the biggest yet.<\/p>\n

\u201cWe are in a global finance bubble, which I call the grand-daddy of all bubbles,\u201d said Noland. \u201cEconomists can\u2019t see it. They can\u2019t model money and credit. However, to those outside the system, the facts are increasingly clear.\u201d<\/p>\n

Noland points to inflating real estate, bond and equity prices as key causes for concern. According to the Federal Reserve\u2019s September Z.1 Flow of Funds report, the value of US equities jumped $1.5 trillion during the second quarter to $42.2 trillion, a record 219% of GDP.<\/p>\n

Noland\u2019s Credit Bubble thesis<\/b><\/p>\n

Noland may be right. A report by the International Institute of Finance released in June estimated that global government, business and personal debts totaled $217 trillion earlier this year. That\u2019s more than three times (327%) higher than global economic output.<\/p>\n

Adding to the complexity is the fact that not all debts are fully recorded. For example, according to a World Economic Forum study, the world\u2019s six largest pension saving systems \u2013 the US, UK, Japan, Netherlands, Canada and Australia \u2013 are expected to experience a $224 trillion funding shortfall by 2050.<\/p>\n

Noland\u2019s warnings come during a time of exceptional public trust in governments, central banks, regulators and other institutions. Market volatility is trending at near record lows.<\/p>\n

In June, Federal Reserve Chair Janet Yellen spoke for many when she said that she did not see a financial crisis occurring \u201cin our lifetimes.\u201d
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\nUnburdened by \u201ceconometrics groupthink\u201d<\/b><\/p>\n

So why would Noland, who during his day job runs a tactical short book at McAlvany Wealth Management, see things that government, academic, and central bank economists don\u2019t?<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

An Accountant Smells a Rat – Peter Diekmeyer Twenty years ago Doug Noland was so worried about imbalances surrounding the dot.com boom that he began to title his weekly reports \u201cThe Credit Bubble Bulletin. Years later, he warned the world about the impending 2008 crisis. However a coming implosion, he says, could be the biggest […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1799,175,3203,3920,536,13228,6355],"class_list":["post-26396","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bubbles","tag-credit","tag-credit-bubble","tag-financial-bubble","tag-money","tag-peter-diekmeyer","tag-sprott-money"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=26396"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26396\/revisions"}],"predecessor-version":[{"id":26398,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/26396\/revisions\/26398"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=26396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=26396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=26396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}