The US “Unsecured Debts” are 5 times the public debt. Gudlach Vs Biden
Jeffrey Gudlach, one of the most influential businessmen in the US and founder of DoubleLine Investment throws his head down against Biden's economic policy that would enslave citizens to government grants and make the state indebted to an extent never before seen in history. and, above all, on a non-redeemable level, not even potentially.
It is estimated that, by dint of aid for Covid-19, which should have been temporary, but is now in the medium term, and greater aid to the unemployed 31.2% of Americans' incomes depends on distributed public funds:
therefore we have a slice of the population that is increasingly parasitic with respect to the state, all at a time when, paradoxically, the demand for labor is growing. All this is being financed with ever-increasing federal deficits, with the forecast that it could reach 19.5% of US GDP in the short term.
Then the Federal Budget exploded and grew to $ 7,500 billion, with a quarterly increase of $ 375 billion. The US economy is increasingly dependent, in general, on public spending that exploded after Covid19.
In theory, a growing balance sheet can always be contracted, but to do so requires an extremely strong moment of growth, otherwise you risk going into recession. There is no such growth in sight. The growth in aid and public spending at these levels, according to Gudlach, is not reversible.
Unsecured debt amounts to $ 163 trillion, equal to 775% of US GDP, well above the current US public debt. According to Gudlach, this form of creeping MMT led by the Biden government and the FED .
Gudlach is economically a conservative, but he is not a fool. He was one of the few to predict the subprime debt disaster, which he survived well. If the alarm sounds there is a reason. His observations are not only trivial and should be taken into consideration, if only to moderate some excesses that are actually occurring overseas.
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The article "Uncovered Debts" of the US is 5 times the public debt. Gudlach Vs Biden comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/i-debiti-non-coperti-degli-us-sono-5-volte-il-debito-pubblico-gudlach-vs-biden/ on Sat, 08 May 2021 09:11:01 +0000.