Pierre Poilievre, Canadian MP, makes a plea for his nation not to follow in the footsteps of countries like the United States, where people have been encouraged to go into debt which will be impossible to repay, or like Europe, which is now ensnared in welfare programs that are impossible to stop without complete social upheaval.
- Official US Debt is now larger than its economy. Through current or future taxation, the US citizen is on the hook for this debt.
- The US is on the cusp of funding 100% of the Chinese Military – just with interest payments alone!
- The direction the US is going reflects the socialist policies already in place in Europe, where Greek citizens are taking to the streets to demand their government not halt the flow of welfare checks they have become so dependent upon.
- It’s good that Europe has bail-out fund, but S&P has recently downgraded that fund, indicating that it, too, will soon need a bail-out.
Grant Williams, of Vulpes Investment Management, provides us with a brilliant presentation explaining how greed and fear play into the making of economic bubbles. After giving a few examples of historic bubbles of the past, Williams then goes on to describe two bubbles in the present. Spoiler alert!
- The Tulip Bubble of the 1630’s
- The South Sea & Mississippi Company bubbles of 1720
- Government Bonds (today)
- Gold (today)
Williams presents the latter two bubbles happening today as one nearing a collapse and the other in a “sweet spot” ready to enter the hyper-inflating mania phase.