Warum gibt es etwas und nicht nichts? (Why is there something rather than nothing?) - Leibniz
Friday, May 02, 2008
The system is now out of control
Recently I seem to be an annexe for Karl Denninger's blog, but that's the way it is. Here he figures that public and private debt in the US are so massive that with an average 8% interest rate, debt servicing is now equivalent to 22.4% of GDP. He thinks the system must soon explode and those holding cash will be safest.