Soaring Debt = Slow Growth = Even More Debt = Systemic Crisis

Soaring Debt = Slow Growth = Even More Debt = Systemic Crisis, by John Rubino.

It’s just common sense: Borrow too much money and the weight of this debt makes it hard to do things that used to be easy. This truism is now (finally!) hitting home, and blame is being apportioned. …

The result of that insane level of money printing? Asset values relative to GDP are at record levels. And this chart is probably unduly conservative, given the fact that most stock and real estate markets have outpaced GDP growth since the depicted peak of 2014:

What’s amazing about these charts is that monetary stimulus on this scale produces soaring asset prices yet only Depression-level real growth. But that’s just what too much debt does to a system. And the crisis that follows is, unfortunately, just as predictable.