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Three Charts That Should Keep You up at Night

By Chris Lowe, Editor-at-Large on June 3, 2015

Publisher’s Note: Market Insight editor Chris Hunter is traveling to the annual private meeting of members of Bill’s top-tier family wealth advisory, Bonner & Partners Family Office. He’ll be back in his regular slot on Monday. Until then, here’s an excerpt from Bill’s newest investor presentation about a fatal flaw in the U.S. economy that could affect all the cash you have in your bank account… and your ability to access it.


Right now monetary velocity is at its lowest point in history. People aren’t spending the $250 billion in actual U.S. dollars… it’s staying put in their mattresses and safety deposit boxes…

So people are spending something else…

And here it is…

060315 DRE credit

The terrifying source of all our money…

It’s our credit system.

As you can see, for the past 30 or so years it’s been growing exponentially.

That’s why…

…Although wages have been falling since the 1970s…

060315 DRE income

…And although we spend our dollars less and less…

060315 DRE monetary

America still appears to be getting richer and richer.

Since the 1970s, the credit system in America has grown to become our biggest – and most crucial – asset…

More than TWICE the value of every single home in America put together…

More than THREE TIMES the value of every single U.S. bank’s assets combined…

More than 20 TIMES the trillions of dollars the U.S. government collects in taxes every year…

But it’s also our biggest liability.

Because at some point all that credit can only exist if people believe they’ll get paid back.

That is… if they believe that there’s enough money in America to pay back all of that $60 trillion in outstanding credit.

And here’s the truth… There isn’t.

Our credit system is insolvent.

And when it fails… which it will surely do… it could wipe out more wealth than any other crisis in history.

To get full details on what Bill calls the Great American Credit Collapse, read on here.

 

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