by David Kranzler
Investment Research Dynamics
The U.S. economic system is riddled with more debt now than in 2008 when a de facto financial collapse the Great Financial Crisis occurred. Debt behaves like printed money until the time at which the debt has to be repaid. The Federal Government never repays the debt is issues. It rolls over maturities while at the same time it issues more debt. This happens every two weeks. There’s now $19 trillion in Treasury debt outstanding. That number was about $10 trillion when Obama took office in 2008.
Perpetual debt refunding and increased issuance is NO DIFFERENT THAN OUTRIGHT MONEY PRINTING. Until of course, the creditors will no longer tolerate the refinancing of existing debt. That’s what happened in 2008. The market forced the issue and the financial system was collapsing until the Treasury facilitated an eventual $4.4 trillion in outright money printing.