Whenever the Debt to GDP level goes above a certain point (>120%), stagflation occurs. Stocks will stagnate, while inflation goes higher.
In the case of Japan, debt to GDP went over 120% in 2000.
From year 2000 onwards, the Nikkei started to stagnate, while the gold price in yen started to skyrocket. The scenario will be exactly the same for the U.S.A., which is now approaching 150% debt to GDP ($25 trillion debt / $17 trillion GDP).
In the case of Japan, debt to GDP went over 120% in 2000.
From year 2000 onwards, the Nikkei started to stagnate, while the gold price in yen started to skyrocket. The scenario will be exactly the same for the U.S.A., which is now approaching 150% debt to GDP ($25 trillion debt / $17 trillion GDP).
Geen opmerkingen:
Een reactie posten