{"id":44075,"date":"2019-02-26T18:41:33","date_gmt":"2019-02-26T23:41:33","guid":{"rendered":"https:\/\/olduvai.ca\/?p=44075"},"modified":"2019-02-26T18:41:36","modified_gmt":"2019-02-26T23:41:36","slug":"the-financial-apocalypse-the-market-faces-a-12-trillion-reckoning","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=44075","title":{"rendered":"The Financial Apocalypse: The Market Faces A $12 Trillion Reckoning"},"content":{"rendered":"\n

The Financial Apocalypse: The Market Faces A $12 Trillion Reckoning<\/a><\/h3>\n\n\n\n
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Global markets are now facing a $12 trillion dollar reckoning.  The problem is staring the financial apocalypse right in the face and has the potential to accelerate the coming stock market crash.<\/p>\n\n\n\n

A recent report from the Congressional Budget Office<\/a> has warned that deficits will total $11.6 trillion, or 4.4% of gross domestic product between 2020 and 2029. That\u2019s far higher than the historical average of 2.9% over the past 50 years, according to data from INTL FCStone<\/a>. This reckoning will come when no one wants to buy that debt, and that time is quickly approaching.<\/p>\n\n\n\n

According to<\/a> Business Insider,<\/em> a deficit is only as ominous as the market\u2019s inability to buy the excess debt that\u2019s issued along the way. INTL FCStone macro strategist Vincent Deluard<\/a> has serious concerns about that. So far, foreign central banks, and the U.S.\u2019 central bank, The Federal Reserve. Central banks have begun selling debt though, not taking on more. The Fed has slashed Treasury holdings by $260 billion since October 2017, their foreign counterparts have sold almost $1 trillion over the past four years. Deluard says that those debts will terrifyingly be picked up by retail investors and pension funds<\/a>.<\/p>\n\n\n\n

But retail investors are running out of cash to by debt and pensions could implode at any time. \u201cIf retail investors finance budget deficits, the money will have to come from existing cash savings or equity holdings,\u201d Deluard said in a recent client note. \u201cReversing to the long-term average stock allocation would free about $4 trillion in retail savings to go into the Treasury market.\u201d<\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

The Financial Apocalypse: The Market Faces A $12 Trillion Reckoning Global markets are now facing a $12 trillion dollar reckoning.  The problem is staring the financial apocalypse right in the face and has the potential to accelerate the coming stock market crash. A recent report from the Congressional Budget Office has warned that deficits will total $11.6 […]<\/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":[1653,1654,24492,6489,6490],"class_list":["post-44075","post","type-post","status-publish","format-standard","hentry","category-economics","tag-cbo","tag-congressional-budget-office","tag-financial-apocalypse","tag-mac-slavo","tag-shtfplan-com"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44075","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=44075"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44075\/revisions"}],"predecessor-version":[{"id":44076,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/44075\/revisions\/44076"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=44075"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=44075"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=44075"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}