"As part of one of his far-reaching proposals, The Inclusive Prosperity Act of 2019, the Senator aims to "cancel every penny of student debt.""
After a 2018 that saw the official sector buy a record 651 tons of gold bullion, most analysts agree that the trend of voracious gold buying will continue in similar fashion over the next couple of years. According to a report by the World Gold Council, this year’s central bank purchases clocked in at 562 tons by the end of October, which could very well end up placing this year’s total figure above that of 2018.
"North Korea has indicated they have no intention of continuing, and the initial deal itself is being exposed as the fraudulent nothing-burger it always was. Like the China trade deal, the North Korean talks are designed to fail. China will not quadruple its agricultural purchases from the US for any meaningful length of time, and North Korea will never voluntarily denuke."
Lastly, should the judgment fall in favour of Mr Bauer and be applied retrospectively, UK industry would not be able to handle the cost. The PPF would be rendered insolvent and would need to be wound up or bailed out at the cost of many, many billions. Since the PPF is a statutory company, it could only be wound up by an Act of Parliament, which would necessitate a government guarantee of funding.
The multipolar and multilateral world order memes are also a fraud. China, Russia, Europe and other nations are demanding an alternative to the dollar, but if that alternative ends up being a digitized version of the SDR basket under the IMF's control as these countries have suggested, then this means total global centralization, not decentralization.
Longer-term, a deeper correction remains likely, particularly as we head into 2020. If economic and earnings data don’t begin to improve markedly, as currently expected by Wall Street, the current overvaluation of asset price is going to become more problematic to justify.
"The answer is of course: It won’t be paid back. And since every debt is someone else’s asset, you can imagine what that ultimately means. A great many people are a lot less wealthy than they think. It is all phantom wealth that can disappear in an eyeblink."
The issue of Fed vs President is not going away – while the market broadly believes Powell’s and the Fed’s independence is sacrosanct, and Trump can’t sack him, it damages the credibility of the Presidency that Trump still tries to bully the Fed. But – critically - it shouldn’t have that much effect on markets, because we all know that’s just the way it is...
The U.S. is also the world’s largest economy in nominal terms, putting the debt to GDP ratio at 104.3%. Other stand outs from the list above include Japan, which has the highest debt to GDP ratio (237.1%), and China , which has increased government debt by almost $2 trillion in just the last two years. Meanwhile, the European economies of Italy and Belgium check the box as other large debtors with ratios topping 100% debt to GDP.