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RE: The Deflationary Era Is Upon Us

in LeoFinancelast year

With the world populace in decline and consumption in a decline, could this be the start of a massive global economic depression?

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There is an offsetting factor to consider: technology. That could provide a solid boost.

However, something that was not in this article is the debt levels. The only way out of them is austerity. Historically, that was very painful. The US went through, if memory serves me correctly, 5 of them. One problem with the GFC of 15 years ago is that it did not clear out enough debt. All the stepping in only enhanced the problem.

So we will get different areas experiencing different things. I think the EU is in a lot of trouble since they fact demographic issues, have a huge debt problem, and lack the technology of the US or Japan.

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Debt is a huge problem. I find it worrisome how much credit card debt the average American carries. It is hard to imagine Nations carrying debt, especially with all of the taxes they collect.