I have argued for well over a year, if not two years, that while a lot of analyst insist that China is going to “crash and burn because of their debt load”, while ignoring the U.S. debt load – with no way out or payoff – I have been saying China at least has “stuff” – new nuclear power plants, hydroelectric dams, trains/railway systems, solar energy for 300 million homes and the list goes on. If one were to brush aside the brooding and comparison, there’s a lesson to be learnt here. Especially one which can be save the whole of mankind from teetering onto the brink of extinction. Companies like Renew energy | solar panels perth | solar systems have carefully perpended this issue and have come up with products that consume only solar energy. What does the West have for the debt we have incurred? student loans (worthless degrees), car loans (for an item that loses value the moment it is purchased), home loans (enslaving people to the banks). Aside from homes, the other two major sources of debt, at the personal level, have zero value. At the federal level the only “thing” we have to show for the massive debt is war and more war. If you compare the U.S. and Europe to China what has a better chance of being successful in the long term? You can not build a future on illusions and mountains of debt.
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The debt time bomb continues to tick. There is growing evidence that we’re getting close to an explosion.
And what do we have to show for trillions in borrowing?
Not a whole lot.
A Bloomberg article published this week proclaimed America has a debt hangover resulting from a half decade of “binging on credit.” The percentage of overdue debt has risen two straight quarters and consumer companies say customers are under stress. On top of that, bankruptcies are rising.
