Debt Zombies; the Very Essence of an Inflationary Crack-Up-Boom

Isn’t that how it goes? A society (or in this case several developed societies now competing in the currency war) collectively spends more than it has saved and individually its people attain a level of hubris that has taken them right off the balance sheet and down a rabbit hole of wonderment, magic and… D.E.B.T.

Here’s a well done opinion piece form MarketWatch…

The Fed is trapped by the Debt Zombie Apocalypse

Sure, the author is giving me a feedback loop in reaffirming the things I believe but humor me and give it a read anyway.

We all know that the Government is in unmanageable levels of debt that will not be repaid in any orderly or conventional way. Enter inflation as the only way out.

The article also tells of the individuals who are a product of the times; a gross group of mouth breathers with no concept of restraint or sound finances. It’s the post-Armageddon ’08 (thanks again Bernanke) bailout culture now spread from the boardrooms right down into the streets. just released a timely survey about the debt zombies. They’re carrying a balance on their credit cards from month to month, paying interest rates that average around 18%. Yet they carry on spending. They actually spend more on luxuries, on average, than people who can pay off their cards at the end of the month.

It’s societal hubris on a massive scale, and the essence of a von Mises style crack-up-boom – as I understand it – is debt and the need to inflate it away. At some point it becomes a spiral, a self-propelled force. We are probably far from that point today but the US Federal Reserve and its global central banking fellows appear to be attempting ignition.

And the reason is (Captain Obvious moment directly ahead >>>) D.E.B.T.

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