patrick.net

Strategist says

just any guy says

Debt is no longer able to sustain the global economy, no matter how cheap we make borrowing.

Why do you say that? I don't see massive defaults.

Not yet, but they will absolutely start happening if interest rates begin a long term upward trajectory. Besides, you don't need defaults to cause a deflationary spiral...you just need people to stop spending and start paying down debt and/or saving. Then, the defaults start happening because people start losing jobs.

Ironman says

Yep, because those people move to the Not In The Labor Force, and are no longer counted.... Eventually, we'll get to a 1% UE Rate, and NILF of 150 million.

That may be true. But they are likely sustaining themselves somehow. They won't move to where projects are funded temporarily, because they live with relatives. It isn't like when the Michiganders moved to Texas where the jobs were. People are less mobile now because wages have fallen behind and there are multigenerational households. Wages decreased after the Great Recession, some just recently where I live.

It isn't that assets have risen abruptly although over time they have. It is that wages that were a little sticky, are declining for many manufacturing industries. Wages that paid 25 dollars an hour are paying 10 to 15 dollars per hour.

Also, companies like Disney are paying 9 dollars an hour through work at home companies. This is a disaster.