In this week's Off The Cuff podcast, Chris and John Rubino discuss:
- The Coming Debt Explosion
- Really? We're going to try to add more??
- Pension Time Bomb
- Going off sooner than most expect
- The Evil Fed
- It's policies are at the root of our economic predicament
- The Revolution Is Brewing
- Continental Europe will see the next iconoclast elected
The only thing more frightening than the massive overburden of debt weighing on today's economy is the recent trial balloon that we need to add a bunch more in order to spark economic growth. Chris and John slam this wrongheaded thinking, and direct our attention to the damage the effects of already having too much debt is wreaking on our future prospects:
Let’s just work some of the basic math here. So, I was just thinking through this pension thing a little bit today. And I said okay, let’s imagine you have a 60/40 pension portfolio. 60% is bonds, and the 40% is equities and private equity and real estate and all the other stuff they load in there to see if they can get a better return. And if we imagine generously that they’re getting 3% on their 60%, then we ask the question: How much do they have to earn on the other 40% if they’re getting 3% on their bonds in order to get to a 7.4% stated rate of return?
by acomfort