Okay.....
We have the Federal Reserve Bank (FED) in the USA stopping its purchases of Government Bonds. It also wont reinvest the Dividends. We have the European Central Bank (ECB) stopping its purchasing of Government Bonds and Corporate Paper. We have a demographic cliff where more old people retire then new people enter the workforce therefore Social Security / Pension Funds get...... emptied! and Government Bonds get SOLD to cover the expenses of pension payments. Governments in Europe, Japan, the USA meanwhile racked up their debt and will want to keep financing all the welfare and employees and whatever they spend their money on (definitely not the school system) So Government Bond supply will INCREASE! Obviously, even a 4 year old would realize that this will lead to higher interest rates being demanded from the market. But.... since within 8 years most Bonds expire then Government will have all its debt of the past 50 years which they keep increasing now in HIGHER interest rate Bonds!!!!!!!!!!!!!!!!!!! By 2020 even just paying the interest on the debt will consume a sizable portion of Governments Budget. Sizable as in bigger than the US military budget.... I think......its time to walk out of this deadly satanic downward spiral cause this is beyond fixing and the fact that the press isnt all over this.... means they are being censured, so government knows but doesnt want us to pay attention. Time to go faaaaaaaaaar away and fast!!!!!!!!!!! Countries with high Government Debt that can serve as the canary in the coal mine: Japan, Greece, Portugal, Lebanon, Italy, Jamaica, Cyprus, USA, Singapore Countries with low Government Debt: Estonia, Chile, New Zealand, Bulgaria, Thaiwan, Norway, Switzerland, Hong Kong Indonesia and Philipines have relatively low debts too, additionally i suspect after 2020 they will perform great and have good growth, especially compared to the others like Estonia, Thaiwan Comments are closed.
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AuthorPascal |