MarketWatch/Satjayit Das/6-12-2020
“Debt is analogous to the effect that ice has on an aircraft. Planes are designed to cope with modest icing on the wings. But large build-ups cause a loss of lift, resulting in erratic flight, loss of altitude — and ultimately a crash. Global debt levels resemble a large buildup of ice on the wings of the global economy and threaten a catastrophic final chapter.”
USAGOLD note: Das offers five ways to reduce debt, quickly debunks each and concludes with the warning posted above.
“What was stupidest about the past few months was how it was these guys who everyone was depending upon to make it all go just perfectly moving forward. Worse, those geniuses being held up as competent economic stewards practically reran the 2008 playbook line by line. What that said, more than anything, was that they had come up with zero new ideas. Nada. Zip. A full decade to think about it and just more of the same. Of course, Janet Yellen said this could never happen again. Not in our lifetimes.”
