- Fed Govt debt increase USD5trillion to USD10 trillion
- Private Debt increase USD20 trillion to USD42 trillion
- Privated Debt (42T) comprised of Financial Debt (17T)+Corporate Debt(11T)+Consumer Debt (14T)
- Unfunded Social Security and Medicare is about USD46T in 2008
- USA derivatives about USD200-250 trillion (world is about USD600 trillion)
2008-2010 (to be updated soon) - I believe couple of trillion here and there.
Japan land price increase 3 times from 1986 to 1989
USA land price increase 3 times from 2000-2005
FACT #2
Home affordibility ratio:
Australia 7x
Mumbai 10x
China (Shanghai and Shenzhen) 40x
Singapore 26x
(This ratio is taken from a blog, handle with care)
FACT #3
During the 2007 to 2008, US dollar appreciate about 20% (please recheck) against major currency, and the following collapse (different timing)
- Stock market (around the world)
- Commodities market (around the world)
FACT #4
2011 - GOLD reach new high, SILVER reach new high, OIL reach USD106 per barrel, lot of commodities (Copper, corn, sugar, soya) reach new high and at the same time, US dollar reach its historical low.
MyView
Could it be CARRY TRADE in US dollar like Japan? Could Fact #1 points to debt implosion is far greater than government printing of money (larger than it could handle)?
Could Fact #2 ignites a SECOND TSUNAMI from the property bubble from Emerging Market?
Could Fact #3 reverse, i.e. US dollar reverse from the current historical low? Don't forget, Japan went into the following scenerio before during the 1989 crisis, people thought the printing of money by Japan government will turn yen into toilet paper (but it became stronger since)
Would it be so simple, at the moment, the majority (even a common person on the street) could explain that the printing of money will cause hyperinflation? So, buy gold and silver, commodities and don't keep cash. In the financial history, we only see that when gold and silver has a negative correlation with stock market, and why does this time round it turn positive?
Well, the world economics is dynamic, but, debt creation is TANGIBLE, properties oversupply is TANGIBLE, commodities price spike beyond supply and demand is TANGIBLE, how else could we explain why all asset classes increase will US dollar depreciates.
If Japan needs to reconstruct its countries, it would need new funding outside Japan because Japan trade surplus will shrink over the next few years, and foreign funding for Japan will be more expensives, guess what denomination of funding Japan must issue, I think most likely is US dollar (hmmm, a new demand for US dollar).
Recently China is reducing its US dollar reserves, but Japan maintain its US dollar reserves. Could it be Japan has seen this before (DEBT DEFLATION)?
Give it a thought and do more research. Because, if one read it correctly, one can protect its own wealth.
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