2019: Japanification / LBO’ing of world economies & mkts continues; asset bubbles bursting; debt replacing organic growth.

via @MI_Investments:

Q/T stopped forcing C/B’s to explain $20T bal sheets not temporary. US deficits $1T–>$2T. Debt crises erupt + spread globally.

Strong economy, Jay Powell? Or an economy on IV infusions of debt just to maintain 2% growth?

Global debt-to-GDP is 275%. Each 100% portion of the 275% total would cost 3%/yr in interest expense at Fed ‘normalized’ rates. 3% + 3% + 2.25% = (-8.25%) x GDP or an annual interest cost alone of over -8%. Compare that to global growth of 4% and you get a -4%xGDP contraction