Unlimited Debt is Likely to Lead to Unlimited Consequences

The world today seems to be spinning faster on its axis than ever as humanity scrambles to stay afloat in a world drowning in debt. It all seemed like such a good idea back in the day, as the credit-based US economy seemed to create prosperity out of thin air for decades. The economic alchemists explained that the more we consume, the more the economy will prosper. And because of easy and abundant credit, we didn’t have to pay until later!

Unfortunately, later has arrived. Growth built on the sandy foundation of debt-based consumption (instead of saving and investment) was fun while it lasted. But now the economic party glass has been filled to overflowing with debt, and we are all getting wet. The great global debt party must now be wound down and cleaned up, but no one seems willing to face the inevitable hangover. The US has more than doubled its debt burden, relative to GDP, since the 1980’s and the consequences are beginning to crash the party. (more)