The US national debt stands at over $21 trillion and neither political party in Washington D. C. seems inclined to do anything about it. In fact, the GOP tax planwinding its way through the political process will add an estimated $1.5 trillion more to the debt over the next decade. And that doesn’t even account for the increases in spending that Congress will certainly approve over that timespan.
Of course, all of this government debt has serious ramifications. Corporations are also piling on credit. Last month, Mint Capital strategist Bill Blain predicted that ‘the great crash of 2018 is going to start in the deeper, darker depths of the credit market.’
Now consider this. China has an even bigger debt problem than the US, and analysts say it could threaten global financial security.
Jim Rickards recently listed a Chinese debt crisis as one of the possible snowflakes that could set off the next financial avalanche. As if on cue, the mainstream has picked up this narrative. As Business Insider reports it:
China’s ballooning levels of debt and dependency on credit to fuel growth continues to pose a major financial stability threat to the global economy, and could be the catalyst for the next crisis, according to the International Monetary Fund.’
This post was published at Schiffgold on DECEMBER 8, 2017.