The debt-fueled “growth” the U.S. has seen in recent years, has reached all-time highs
The “Debt Trifecta”:
1. U.S National Debt: U.S.debt exceeds GDP. Since 2008, the debt has jumped from $10.6 trillion to $22 trillion. It also comes with a deficit that’s currently over $1 trillion.
2. Corporate Debt: Corporations have taken on a record level of debt since 2007.
3. Consumer Debt: Total consumer debt (near $4 trillion) has risen 47% since 2008, and shows no signs of stopping.
And now, even billionaires [Seth Klarman, Ray Dalio] are sounding the alarm.
What to do? “Prepare Your Exit Plan”
https://www.zerohedge.com/news/2019-02- ... to+zero%29
But don’t worry because the FED has your back, via
possibly more frequent QE:
Friday [2/8/19], Reuters reported that San Francisco Fed President Mary Daly said that US central bankers are currently debating whether it should confine its controversial tool of bond buying to purely emergency situations or if it should turn to that tool more regularly.
“In the financial crisis, in the aftermath of that when we were trying to help the economy, we engaged in these quantitative easing policies, and an important question is, should those always be in the tool kit …”.
So how would the Fed decided which "tool" to use when? Well, according to Daly the answer wasn't clear: "you could imagine executing policy with your interest rate as your primary tool and the balance sheet as a secondary tool, but
one that you would use more readily,” she added. “That’s not decided yet, but
it’s part of what we are discussing now."
https://www.zerohedge.com/news/2019-02- ... -regularly