Austin, TX. (PRWEB) March 03, 2012
The “Borrowing Your Way Out of Debt and Other Normal Abnormalities” article by Bill Bonner that was published today in the Absolute Wealth newsletter has some great suggestions on financial recovery. The newsletter says the U.S. is in correction, but people get used to correction, and used to the feds pumping in cash and credit to keep things from getting too rough.
It is not exactly "normal" for a central bank to lend money below the rate of consumer price inflation, the newsletter reports, and it is not exactly "normal" for the government to run a deficit equal to 8% of GDP, or for it to spend $1.50 for every dollar it gets in tax revenues. The Absolute Wealth newsletter says a lot of things aren't normal, but if people do them for long enough, people get used to them, even giving away money begins to seem normal.
The real problem now the Absolute Wealth newsletter explains, is that the private sector has debt to settle, but they can't settle debt with more debt. No, the Absolute Wealth newsletter reveals, they can't borrow their way out of debt, but they can sure in-debt their way out of borrowing. That is, the Absolute Wealth newsletter says, they can run up so much debt that no one wants to lend them any more money.
The Absolute Wealth newsletter today explains that investors seem to think the problems are behind them. When people turn their heads to look back, they see a few problems back there the Absolute Wealth newsletter reveals. Households have reduced their debt-to-GDP ratio by 15%, the Absolute Wealth newsletter says, unfortunately, they've got a long way to go, at least another 15% and maybe another 50%.
Read the rest of this article, plus more great articles like this interesting article “Borrowing Your Way Out of Debt and Other Normal Abnormalities” by Bill Bonner, that was published today in the Absolute Wealth newsletter at AbsoluteWealth.com.