I suggest all of you get to know Doug Noland at the Prudent Bear and his column “The Credit Bubble Bulletin”. Doug is in my opinion one of the best macro credit analysts in the world. He correctly compared the credit market dislocation throughout mid-2007 to 2008 to 9/11, suggesting that the “world had changed” and that it would have a dramatic impact on the global marketplace. He now seems to be convinced that a new bubble is emerging in government finance. The government must create more than $2 trillion of new debt this year and probably even more next to make up for the stagnation of credit growth from the private sector.
While the first three quarters of every article is statistics and quotes from other articles, the last quarter is where Doug talks about his take on the global economy, so read through to the end. Take a read it’s worth it.