Three Reasons Why Americans Should Be Worried

27.09.2016 • Central Banks

From the Monday Newspaper (Argentina) – Last week, we hosted the IG conference.

When Federico asked me how I saw the situation of the United States, I replied that it was truly disturbing:

“Today the US public debt exceeds 100% of GDP, and the Federal Reserve of the United States multiplied by 4, the monetary base since 2007; bringing it from 6.3% of GDP to 25% of GDP, or more than $ 4 trillion. The Fed’s balance sheet also is full of titles federal government, so that the monetary financing of the fiscal deficit and mortgage-backed securities is, reflecting that the Federal Reserve has to rescue the financial system, something incompatible with capitalism that made it big in the United States, and very dangerous for the future financial stability “

In short,  along with the rest of the editors, we agree that the United States is “argentinizándose”,  and that’s not good news. When imbalances are very large, the crisis, which takes the form of devaluation, inflation, the decline in economic activity and the collapse of markets appears.

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