American Debt Super Cycle nearing its End Game
Here is a video of John Mauldin, best-selling financial author, discussing his view of the debt cycle, and the coming de-leveraging recession. Filmed during the Executive Program March 2010 at Singularity University, NASA Ames, Silicon Valley. (thanks to Singularity Univeristy)
I’ve clipped two of his screen shots, because they are pretty shocking. The first comes at 3:50 into the video, where he shows how the economy did WITHOUT taking into consideration Mortgage Equity withdrawals. Blue bars show GDP WITH Mortgage Equity withdrawals showing up as “Spending”. The red bars show the GDP calculations WITHOUT Mortgage Equity withdrawals showing up. Two negative years would have scared us somewhat straight… But, no, we were told to spend…
The second is a graph of the debt super cycles that comes 1 minute into the video. The gray bars are recessions.
Its a LONG video, but its worth it. Lots of remedial information about economics and the US economy in particular.
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