Alex_G

Is This the Last Great Bubble?

Mark,

M3 has been contracting at a very rapid rate. The fed has not been "printing money", as you say. They are issuing low cost debt to buy potentially high return assets. They are expanding the balance sheet, not issuing debt and spending it.

Also, using your logic, Japan would be now where you predict the US will be. their country debt is 170% of GDP, up from almost 0 in the late '80s, are projected to lose 2/3rds (yes, 2/3rds !!) of their population by the end of the century. With foreign reserves at less than 1/7th of national debt, they are much less likely to be able to pay back the debt. Their 30 yr bond is at a 2.25%.

Alex