{"id":43688,"date":"2019-02-09T07:02:48","date_gmt":"2019-02-09T12:02:48","guid":{"rendered":"https:\/\/olduvai.ca\/?p=43688"},"modified":"2019-02-09T07:12:07","modified_gmt":"2019-02-09T12:12:07","slug":"debt-trifecta-at-all-time-highs-billionaires-panic","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=43688","title":{"rendered":"Debt Trifecta at All-Time Highs \u2013 Billionaires Panic"},"content":{"rendered":"\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"450\" src=\"https:\/\/olduvai.ca\/wp-content\/uploads\/2019\/02\/US-debt-2-8-19-2.png\" alt=\"\" class=\"wp-image-43691\" srcset=\"https:\/\/olduvai.ca\/wp-content\/uploads\/2019\/02\/US-debt-2-8-19-2.png 600w, https:\/\/olduvai.ca\/wp-content\/uploads\/2019\/02\/US-debt-2-8-19-2-300x225.png 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong><a href=\"https:\/\/www.birchgold.com\/news\/debt-trifecta-all-time-highs\/\">Debt Trifecta at All-Time Highs \u2013 Billionaires Panic<\/a><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The \u201ctrifecta\u201d of national, corporate, and consumer debt has reached all-time highs, and could prove to be catastrophic if a recession hits.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let\u2019s start by quickly bringing each part of this debt trifecta up to date as much as possible\u2026<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>U.S. National Debt<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The national debt, ever on the rise, currently sits at around&nbsp;<a href=\"https:\/\/tradingeconomics.com\/united-states\/government-debt\" target=\"_blank\" rel=\"noreferrer noopener\">$22 trillion<\/a>:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"275\" src=\"https:\/\/olduvai.ca\/wp-content\/uploads\/2019\/02\/national_debt_2018-e1549585449352.png\" alt=\"\" class=\"wp-image-43692\" srcset=\"https:\/\/olduvai.ca\/wp-content\/uploads\/2019\/02\/national_debt_2018-e1549585449352.png 600w, https:\/\/olduvai.ca\/wp-content\/uploads\/2019\/02\/national_debt_2018-e1549585449352-300x138.png 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In just the short decade since 2008, the&nbsp;<a href=\"https:\/\/www.birchgold.com\/news\/us-debt-worries-fed-chairman-powell-fears-may-be-confirmed-in-march\/\">debt<\/a>&nbsp;has jumped from $10.6 trillion to $22 trillion. It also comes with a deficit that\u2019s currently over $1 trillion currently. The interest payments alone may be forming a \u201c<a href=\"https:\/\/www.birchgold.com\/news\/us-debt-so-high-interest-payments-are-forming-a-black-hole\/\">black hole<\/a>\u201d from which the U.S. may never escape.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These facts alone should raise concern in any interested observer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Corporate Debt<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The total amount of corporate debt has never stopped rising since 1950. Corporations have taken on a record level of debt since 2007.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can see the&nbsp;<a href=\"https:\/\/fred.stlouisfed.org\/series\/NCBDBIA027N\" target=\"_blank\" rel=\"noreferrer noopener\">steady rise in corporate debt liabilities<\/a>&nbsp;here:<\/p>\n\n\n\n<ul class=\"wp-block-gallery columns-1 is-cropped wp-block-gallery-1 is-layout-flex wp-block-gallery-is-layout-flex\"><li class=\"blocks-gallery-item\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"249\" src=\"https:\/\/olduvai.ca\/wp-content\/uploads\/2019\/02\/corporate_debt_fred-e1549585506687.png\" alt=\"\" data-id=\"43695\" data-link=\"https:\/\/olduvai.ca\/?attachment_id=43695\" class=\"wp-image-43695\" srcset=\"https:\/\/olduvai.ca\/wp-content\/uploads\/2019\/02\/corporate_debt_fred-e1549585506687.png 600w, https:\/\/olduvai.ca\/wp-content\/uploads\/2019\/02\/corporate_debt_fred-e1549585506687-300x125.png 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/figure><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">One of the main problems with this type of debt, aside from getting repaid, is that some corporations are using it to&nbsp;<a href=\"https:\/\/www.birchgold.com\/news\/corporate-crash-insurance-looks-more-like-sleight-of-hand\/\">buy back shares of stock<\/a>. Instead of this \u201csleight of hand,\u201d you\u2019d think that they should be using it to fund growth and create jobs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But one thing is certain, the piper will need to be paid at some point. When that happens, who knows what can happen to the economy.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Consumer Debt<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Total consumer debt is near $4 trillion, and has been rising steadily since 1975. But it has&nbsp;<a href=\"https:\/\/www.birchgold.com\/news\/consumer-debt-reaching-crisis-point\/\">risen a staggering 47%<\/a>since 2008, and shows no signs of stopping.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;<a href=\"https:\/\/fred.stlouisfed.org\/series\/TOTALSL?utm_source=series_page&amp;utm_medium=related_content&amp;utm_term=related_resources&amp;utm_campaign=categories\" target=\"_blank\" rel=\"noreferrer noopener\">chart<\/a>&nbsp;below reveals this economic \u201cATM\u201d at work:<\/p>\n\n\n\n<ul class=\"wp-block-gallery columns-1 is-cropped wp-block-gallery-2 is-layout-flex wp-block-gallery-is-layout-flex\"><li class=\"blocks-gallery-item\"><figure><img loading=\"lazy\" decoding=\"async\" width=\"600\" height=\"223\" src=\"https:\/\/olduvai.ca\/wp-content\/uploads\/2019\/02\/consumer_debt_fred-e1549585549967.png\" alt=\"\" data-id=\"43696\" data-link=\"https:\/\/olduvai.ca\/?attachment_id=43696\" class=\"wp-image-43696\" srcset=\"https:\/\/olduvai.ca\/wp-content\/uploads\/2019\/02\/consumer_debt_fred-e1549585549967.png 600w, https:\/\/olduvai.ca\/wp-content\/uploads\/2019\/02\/consumer_debt_fred-e1549585549967-300x112.png 300w\" sizes=\"auto, (max-width: 600px) 100vw, 600px\" \/><\/figure><\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">When interest rates rise, as they have been thanks to the&nbsp;<a href=\"https:\/\/www.birchgold.com\/news\/stocks-getting-hit-hard-as-rates-keep-rising\/\">Fed\u2019s recent spat of rate hikes<\/a>, they will eventually get high enough that consumers won\u2019t be able to get loans, or repay them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Economic growth requires that consumers buy things and obtain credit. If they can\u2019t do either, the consequences could be dire.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, this debt-fueled trifecta has caused panic among some billionaires.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Debt Trifecta at All-Time Highs \u2013 Billionaires Panic The \u201ctrifecta\u201d of national, corporate, and consumer debt has reached all-time highs, and could prove to be catastrophic if a recession hits. Let\u2019s start by quickly bringing each part of this debt trifecta up to date as much as possible\u2026 U.S. National Debt The national debt, ever [&hellip;]<\/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":[18769,3158,8898,195,827],"class_list":["post-43688","post","type-post","status-publish","format-standard","hentry","category-economics","tag-birch-gold-group","tag-consumer-debt","tag-corporate-debt","tag-debt","tag-united-states"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43688","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=43688"}],"version-history":[{"count":3,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43688\/revisions"}],"predecessor-version":[{"id":43697,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/43688\/revisions\/43697"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=43688"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=43688"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=43688"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}