the U.S debt bubble is growing bigger
and bigger and bigger and when this debt
bubble Pops in fact it might have
already popped we are going to see one
of the biggest recession in financial
crashes of all time because right now
folks pay attention to this there is
over 63 trillion dollars in debt
outstanding in America that 63 trillion
is comprised of Consumer Debt government
debt and corporate debt and it’s over
three times more than the total income
that America brings in each year of 21
trillion and as this bubble pops you’re
going to see all of the zombie companies
in America that are really supporting
our economy these companies that lose
money but hire a lot of workers these
zombie companies are gonna start to go
bankrupt and they’re going to go out of
business which is going to perpetuate a
deep recession deeper than most people
can even imagine right now because I
want you to take a look at this graph
for everyone it shows the growth rate in
the number of businesses in America
since the end of 2018. we can see a 10
percent growth in the number of
businesses increasing from 9.8 million
million to 10.8 million now most would
look at that graph and think that this
is a good thing that there’s more
businesses in America but when you
compare the Blue Line the growth in
businesses to the Orange Line the growth
in employees over the same time period
you could see a problem and that’s that
the number of employees through the end
of 2021 in America was actually below
where it was in 2018 yet the number of
businesses was 11 percent higher and so
by looking at this data you can all
start to realize that in fact in America
we actually don’t have a shortage of a
workers employees but we have on the
other end a bubble and an over abundance
in the number of businesses that often
lose money that are allowed to exist
because of the Raging debt bubble that’s
occurred over the last several years and
last several decades this situation is
creating the perception of a strong
labor market in a strong economy in some
circles but when you begin to analyze
the debt bubble you start to see that
this is all a house of cards house of
cards that in recent years has been
propped up by the U.S government
spending money like a drunken sailor and
taking out an epic amount of debt I mean
just take a look at this everyone back
in 2008 at the peak of the last
Financial bubble in Crash before
everything really turned sour the U.S
federal government had 6.2 trillion
dollars in outstanding debt fast forward
to today and that’s gone up by more than
500 percent all the way to 26 trillion
at the same time consumer debts gone up
from 14 trillion to 18 trillion a
corporate debt’s gone from 11 trillion
to 20 trillion and so folks this is what
I call a debt binge the government
consumers and corporations in tandem are
going nuts taking out debt and this is
ultimately what’s been sustaining the
U.S economy over the last 15 years but
especially over the last two years
because during the pandemic the U.S
government pumped nearly five trillion
dollars of debt fueled money into the
economy going to individuals and
families businesses state and local
governments as well as health care
agencies but I know a lot of you are
starting to look at this data and say to
yourselves right now wait a minute this
looks unsustainable the government and
consumers and corporations can’t keep
taking out debt forever especially now
that the Federal Reserve is tightening
the screws on monetary policy this is
the big change that’s occurred in the
last six months from the previous 20
years is that the FED is now getting
serious about fighting inflation they’re
jacking up interest rates they’re taking
money out of the system through
quantitative tightening and this is
ultimately what’s going to crash the
debt bubble because now now folks that
interest rates are up if a consumer has
a credit card well their credit card
payments are going to go up and they
can’t take out as much credit card debt
if a corporation wants to issue a new
corporate bond well now that corporate
bond is going to be at a higher interest
rate which is going to deteriorate their
profitability and then the big one is
really the US government as U.S
government debt continues to roll with a
massive 59 percent of all government
debt maturing over the next four years
they’re going to have to refinance it at
higher interest rates which is going to
increase the cost burden of government
Debt Service which is ultimately going
to mean less money in the budget in the
future for stimulus checks and support
for the economy and so what does means
everyone for you all out there is that
you better be preparing for this
recession to be worse than anticipated
because a debt crisis recession a debt
bubble recession well that’s the worst
kind of recession we saw in 2008 just
how bad that could be when a debt bubble
pops it takes years and years to recover
but what potentially makes today worse
than 2008 is the fact that we have to
deal with record levels of inflation
something we didn’t have to deal with
back then year over year consumer prices
in America are up by over eight percent
and that throws a big wrench in the
system because inflation is a big
economic headwind the more that gas
prices go up the more that food prices
go up the less that people are going to
have to spend on other goods and
services in the economy now in previous
years in previous decades if people
started running out of money they would
have taken out more debt they would have
increased their credit card balances or
you know the US government like they did
during the pandemic would have sent
stimulus checks to everyone and that
would have kept the economy going
problem is that these things are really
no longer viable Solutions because if we
take a look at data over the last 50 to
60 years we can see that right now in
America total debt is around 297 percent
of personal income that’s again the 63
trillion in debt compared to the 21
trillion in income in America now if we
go back to the 1970s we can see that the
debt levels were a much more manageable
147 percent of total income and so that
meant that when the inflation surged in
the 70s and 80s it was bad but Americans
actually were then able to take out more
debt in following years to compensate
for the fact that the cost of goods was
higher so that kept the economy going
however now in 2022 with this massive
inflation surge we don’t have the room
anymore to take out more debt which is
ultimately going to mean a debt crisis
and a deleveraging in the economy that’s
going to be very painful it’s going to
be like weaning off a drug we’ve gotten
so used to over the last 15 years that
debt would come to the rescue whether it
was government debt or Consumer Debt or
corporate debt there’d be a way that
money could come into the system and
keep things going and that that’s not
going to happen in the same way going
forward which is going to lead to a lot
of layoffs it’s going to lead to lots of
company bankruptcies and it’s going to
lead to an even further crash in the
stock market in the housing market in
the crypto market and some of you will
be more in the crosshairs of this crash
than others for instance if you’re
someone who works for a tech company
that loses money and you have a lot of
debt taken out either through your house
or through margin loans on your stock
portfolio you’re going to be more in the
crosshairs of the crash that’s coming
and as a result you should probably take
more precaution and try to save more
money meanwhile if you’re someone who
works for a company that makes money and
has solid earnings you don’t have much
debt on hand and you have a lot of
liquid Savings in your bank account
you’re not going to be as exposed to the
downturn and in fact you’re going to be
in a good position to capitalize off
this downturn in coming months and years
because there’s going to be a lot of
buying opportunities out there and I
think it’s really important that you all
keep this frame of mind right that while
some of this information and data will
sound scary to you all in reality this
will be a massive Opera opportunity for
a lot of people who maybe sat out over
the last two to three years because they
didn’t feel comfortable taking out loans
and taking out debt and participating in
the crazy stock market and housing
market well now your time is coming to
take advantage of the downturn that’s
going to come as the debt bubble pops
and the excesses go away and the
Ultimate Reality of this situation
everyone is that there is going to be no
easy way out I think a lot of people
like to think that the Federal Reserve
is just going to come to the rescue
again right like some people say oh
we’re not going to have a bad asset
crash we’re not going to have a bad
economic crash because the FED at some
point either later this year in 2023 is
going to cut rates and print money again
but here’s the thing that everyone seems
to forget and that’s that this is not
just a U.S debt bubble this is a global
debt bubble according to Reuters Global
debt was fast approaching 300 trillion
dollars at the end of 2021 so it’s not
only America that’s in this situation
it’s most countries in the world whether
they be Canada or Sweden or China or the
UK or Australia and so that creates the
risk factor of a a worldwide contagion
effect across debt markets stock markets
and housing markets across the globe
that could make this downturn a
self-fulfilling prophecy regardless of
what the Federal Reserve tries to do and
what’s crazy to me is how similar right
now in 2022 looks and feels to 2007 the
year before the huge financial and
housing crash across the world we’re
seeing so many of the same things play
out we have a debt bubble we have a
housing bubble and a stock bubble which
are both deflating at the same time we
have most of the countries in the world
exposed to this bubble we have
record-setting gas prices the last time
gas prices reached this level was 2008
right before the last crash things are
lining up in a way where I think we’re
going to see a very similar downturn
play out in this recession maybe not so
much as the entire banking system is
going to collapse but in terms of
declines in asset values whether it be
real estate or stocks I think they’re
going to be similar to what they were
from 2007 to 2012 and perhaps worse in
certain k cases because as Economist
noriel rubini points out today we Face
Supply shocks in a context of much
higher debt levels implying that we were
heading for a combination of get this
folks 1970s stagflation to go along with
2008 style debt crisis that is a
stagflationary debt crisis something
that this world has never seen at least
in recorded history over the last couple
hundred years we are entering Uncharted
Territory for what we’re about to see in
the economy in not just America but
across the globe over the next one to