Opinion (From mybudget360.com): “The global market is being held together with the veneer of massive debt duct tape. The solution for much of the European debt crisis was to simply add more debt to the current situation. In other words, solve a debt problem with more debt. All this does is delay the inevitable. The hope is that somehow GDP in these countries will grow fast enough to pay off existing debts but the amount of debt is so enormous that it is mathematically impossible without inflating currencies away. Even the US is mired in enormous levels of debt and the pace of debt expanding is by far outpacing GDP growth.
“This debt by definition is unsustainable. If anyone was honest about this they would realize that we will never payback that $15+ trillion in debt outstanding.
“Unlike the banking sector, the deleveraging is occurring at the household level. The only area where this isn’t occurring is in the corrupt student loan market that keeps growing into yet another debt based bubble.”
My Comment: Once they used to say in Russia: “War will write everything off.” This is what they are hoping for.