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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: rr_burns who wrote (109242)	10/19/2010 12:44:39 PM
From: benwood	1 Recommendation Read Replies (2) \| Respond to of 110194

Illuminating. I think it's a second cousin, not a sibling, however. Their debt -vs- gdp had been declining since WWII, rather than rising rapidly as during our expansion of the Federal Gov't and collapse in real economic performance. GDP was significantly less fudged in '64. Also, I don't know what kind of military expenditures UK experienced in the mid-60s, but I would just take a stab that they were 1/10th or less of the USA today. The initial drop in Pound versus Dollar was about 43% over ten years, with a rebound, then further drop. Seems like a similar pattern will occur here, except with the added bonus of various other nations trying to outprint the USA. One huge wildcard held by the house in our case is the trillions of dollars of toxic financial instruments guaranteed by the Fed and the creation of debt/money out of thin air. Do you know if direct monetization occurred in the UK in the late 60s? Also, the public being forced to shift future tax receipts to benefit banking sector reckless behavior and outright fraud? Trillions of debt hidden off Federal balance sheets in the form of Freddie/Fannie black holes? Entitlement demographics are significantly different today with massively greater pressure than in the mid 60s in the UK (or anywhere). Parallels, to be sure, and not a good time to have drug-addled teens at the helm.