Total credit market debt SPIKED to 265% of GDP during the Depression, some of that had to do with the plumetting GDP and the roaring 20's.
FROM THAT MOUNTAIN TOP we descended to a trough that lasted until about early 1950 which included a severe CREDIT CONTRACTION,DEFAULT on debt bankruptcies and increased savings.
Same time around 1950 WAGES AS % OF HOUSEHOLD DEBT (EWT) was BELOW 0.6%STILL slightly below 1% by the BEGINNING of the GREAT BULL MARKET CONSUMERS BEGAN TO PILE ON THE DEBT.....CREDIT DEBT EXPANDED once again.
BULL MKT in BONDS was also under way after GOLD $800 SPIKE.END OF bull in 2000 wages as % of household debt was around 1.4%......it NOW stands around 1.8%!!!
WAGES have stagnated....and consumers are BORROWING to keep up bull habits..TOTAL CREDIT MKT DEBT as % of GDP IS NOW an astounding 305% !! AND THAT is NOT from a shrinking GDP!
I have shown how the MONEY SUPPLY has grown by a mind blowing amount. AT some point...CONTRACTION IS INEVITABLE as the shifting sands.
UNFATHOMABLE PAIN and distress will follow the coming K-WINTER....there is nothing anyone can do to stop it.The G-MAN has done all he can to make it so much worse....
Duratek
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