The coming Russian debt crisis will rival the Russian financial crisis of 1998. The critical point is that Russia and the Russians must turn to the credit markets if they can not meet their current cash flow needs. If the credit markets reject Russian borrowers because of bad credit ratings (three Cs of credit), Russia and the Russians will be out of cash. To me, this is a debt crisis that will exacerbate the coming Russian Financial crisis. If you can not raise or pay/service current debt, that is a debt crisis. Although in the West there is higher Debt to GDP ratios, that is not as relevant currently as Western nations can raise new debt and meet their financial obligations.
Simply put, a crisis is when you can not pay your bills. This is based on the economic idea of scarcity, infinite wants, and limited resources. We all must make trade, and Russia will have to make a choice. The myth is Russians have limitless resources. They do not. They have a failing one-commodity mechanist business model. The choice is to reform and rejoin the international community of democracies and respect human rights or face a debt and financial crisis of historical proportions.

There has been a surge in public debt in the US and other countries around the world. Are we going to face a looming currency crisis? In this episode, we talk to Jim Rogers and Peter Westaway to unpack these themes.

#jimrogers #usdebt #economy #debtcrisis

ProChain Capital President David Tawil warns of ‘tensions’ between the willpower of the consumer and spending desire. #FOXBusiness

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Total worldwide debt is expected to continue growing over the coming months, despite having just climbed to a fresh all-time high. Given the three previous waves of global debt accumulation have all ended with financial crises, CNBC’s Sam Meredith takes a look at the risks associated with the latest build-up.

Read more:
https://www.cnbc.com/2020/01/14/global-debt-hits-all-time-high-of-nearly-253-dollars–iif-says.html
https://www.worldbank.org/en/research/publication/waves-of-debt
https://www.iif.com/Research/Capital-Flows-and-Debt/Global-Debt-Monitor
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#CNBC #Debt #Economy

Current debates about economic crises typically focus on the role that public debt and debt-fueled public spending play in economic growth. This illuminating and provocative work shows that it is the rapid expansion of private rather than public debt that constrains growth and sparks economic calamities like the financial crisis of 2008.

Relying on the findings of a team of economists, credit expert Richard Vague argues that the Great Depression of the 1930s, the economic collapse of the past decade, and many other sharp downturns around the world were all preceded by a spike in privately held debt. Vague presents an algorithm for predicting crises and argues that China may soon face disaster. Since American debt levels have not declined significantly since 2008, Vague believes that economic growth in the United States will suffer unless banks embrace a policy of debt restructuring.

All informed citizens, but especially those interested in economic policy and history, will want to contend with Vague’s distressing arguments and evidence.

You might be thinking everything’s okay: the stock market is on the rise, jobs are growing, the worst of it is over.

You’d be wrong.

In The Real Crash, New York Times bestselling author Peter D. Schiff argues that America is enjoying a government-inflated bubble, one that reality will explode . . . with disastrous consequences for the economy and for each of us. Schiff demonstrates how the infusion of billions of dollars of stimulus money has only dug a deeper hole: the United States government simply spends too much and does not collect enough money to pay its debts, and in the end, Americans from all walks of life will face a crushing consequence.

We’re in hock to China, we can’t afford the homes we own, and the entire premise of our currency—backed by the full faith and credit of the United States—is false. Our system is broken, Schiff says, and there are only two paths forward.  The one we’re on now leads to a currency and sovereign debt crisis that will utterly destroy our economy and impoverish the vast majority of our citizens.  

However, if we change course, the road ahead will be a bit rockier at first, but the final destination will be far more appealing.  If we want to avoid complete collapse, we must drastically reduce government spending—eliminate entire agencies, end costly foreign military escapades and focus only on national defense—and stop student loan or mortgage interest deductions, as well as drug wars and bank-and-business bailouts. We must also do what no politician or pundit has proposed: America should declare bankruptcy, restructure its debts, and reform our system from the ground up.

Persuasively argued and provocative, The Real Crash explains how we got into this mess, how we might get out of it, and what happens if we don’t. And, with wisdom born from having predicted the Crash of 2008, Peter Schiff explains how to protect yourself, your family, your money, and your country against what he predicts.

The coming financial apocalypse and what government and individuals can do to insulate themselves against the worst shocks

In this controversial book a noted adherent of Austrian School of Economics theories advances the thesis that the United States is fast approaching the end stage of the biggest asset bubble in history. He describes how the bursting of the bubble will cause a massive interest rate shock that will send the US consumer economy and the US government—pumped up by massive Treasury debt—into bankruptcy, an event that will send shockwaves throughout the global economy. Michael Pento examines how policies followed by both the Federal Reserve and private industry have contributed to the impending interest rate disaster and highlights the similarities between the US and European debt crisis. But the book isn’t all doom and gloom. Pento also provides well-reasoned solutions that, government, industry and individuals can take to insulate themselves against the coming crisis.Paints an alarmingly vivid picture of the massive interest rate shock which soon will send consumers and the government into bankruptcyBacked by a wealth of historical and economic data, Pento explains how the bubble was created and what the U.S. can do to mitigate the impending crisisProvides investors with sound strategies for protecting themselves and their assets against the coming financial apocalypseExplains why retirees, in particular, will be at risk as real estate prices decline, pensions weaken, and the bond bubble bursts