Beware the $52 TRILLION $USD Debt Bomb

Phoenix Capital Research's picture

What is Janet Yellen thinking?

The Yellen Fed raised interest rates again in December 2016.

More than this, Yellen has promised the Fed will be raising rates THREE times in 2017.

This is astounding when you consider that the Fed is promising this at a time when the $USD is at a 13-year high.

Janet Yellen is playing a very dangerous game here. There is simply no logical explanation for what she’s doing here It’s madness.

A strong $USD hurts:

1)   Corporate profits (47% of corporate sales from abroad).

2)   GDP growth.

3)   Bonds (debt deflation).

4)    Mortgages and home refinancing.

5)   US manufacturing.

And more.

Indeed, there are few if any benefits to a strong $USD in the current fiat, debt-based monetary system the Fed is managing. Pushing for three rate hikes with the $USD at 102 is like pushing your friend to drink three more beers when he’s already got alcohol poisoning.

Moreover, the Fed tried this whole “we’re going to raise rates 3-4 times in the next 12 months” scheme just one year ago. That triggered a 10% drop in stocks in just two weeks’ time.

My point is this… a strong $USD does NOTHING good for the economy, nor for the corporate sector. And it’s not like the Fed can claim ignorance of this as we went through the exact same situation this time last year!

Finally, there is the $USD denominated debt to worry about.

Globally there are over $52 TRILLION in $USD-denominated debt sloshing around. This is an amount equal to nearly 70% of GLOBAL GDP.


Another Crisis is brewing… the time to prepare is now.

If you've yet to take action to prepare for this, we offer a FREE investment report called the Prepare and Profit From the Next Financial Crisis that outlines simple, easy to follow strategies you can use to not only protect your portfolio from it, but actually produce profits.

We made 1,000 copies available for FREE the general public.

To pick up yours, swing by….

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research


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Dr.Carl's picture

I guess after 60 years of finance and advising work you see it all.


The central bankers in a big way contributed the most to the bubble..


Sometimes these writers are also the most clueless and harmful. But I doubt there are really that many investors or traders on zero.


The real traders and investors I have seen on here have been quoting the S Wave folks. I have counted at least a hundred on here so I guess that speaks well to some of the quality on Zero.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Dr.Carl Jan 3, 2017 3:28 PM

All, I apologize for adding to the space taken up, above, by SchlongWave's unethical spam advertising comments. PLEASE do not go to/click on SchlongWave's spam comment links. Alexa rates their web site at 768,896 globally (wow... INCREDIBLY POOR!). Currently 12.3% of their visits are coming from clicking on SchlongWave's ZH spam comments (ZH gets zero income from this). No doubt SchlongWave monitors these statistics and will keep up the spamming as long as ZHers click on their spam links, going to their site.

Any organization that uses TOS violating spam comments to advertise is an unethical organization, at best. SchlongWave has set up 15 to 20 accounts, possibly more by now, to advertise via a slew of comment spam, often times causing comment threads to become somewhat unbearable. They normally give themselves, using their set of spam accounts, MANY thumbs up, and "excellent analysis" comments in response, trying to convince people that their spam comments are appreciated.

SchlongWave, honestly, you're not going to win over the ZH crowd by spamming the crap out of comment sections, begging for $35/month from people to "subscribe." Please stop spamming ZH. Please put your time and effort into doing good analyses instead. Good results will bring in customers.

Your spam accounts have been identified as: AliSONY, Babs.St.Louis, Billy G, Chi Juan, Dr.Carl, ErikE, FemDayTrader, Irvingm, John Beau, MexInvest, MikeM54, P Christmas Carole, RonnieM, Sonya B59, StevieTexie, Van G, wisetrader224

Setarcos's picture

Yes, but how to weed him/it out?

He/it does not fool me, because I reason that if someone has a sure-fire scheme to win Lotto/Ponzi scheme, then the last thing he/it will do is share the magic.

If ZH was to weed him/it out, then most leading articles would have to vanish, because most promote some vested interest in something, e.g. stocks, gold and silver.

geno-econ's picture

Actually a strong US dollar is a sign of a strong economy.  Problem is all western economies are weak due to central banker deficit financing which masks inherent weaknesses.  However due to reserve currency (petrodollar) status, US is relatively strongest amoungst the weak global  players----until a Black Swan appears that causes a contagious collapse in confidence in the entire monetary system.  At $52 Trillion that point is very close if interest rates are raised to historical levels.  Therefore the FED will avoid future increeases at all costs. If or when Trump and/orr Congress are forced to curtail spending, Corporate profits will plummet and cause the stock market to lose Trillions in paper value .  So watch interest rate hikes or Administration spending cuts to trigger a major recession

Madcow's picture

Im long credit defalut swap swap swaps.

Silver Savior's picture

I keep telling people a strong dollar is no good but they don't believe me. I know the strong dollar has not only not helped me but increased my costs because everyone is raising prices. I hope more and more debt is created and the dollar becomes another failed fiat currency then we get a new currency gold backed and gold revalued to atleast $10,000.

Skiprrrdog's picture

Janet Yellen is on crack...her own...

Bernardo Gui's picture

There is no long term upside to inflating one's own currency, except to lower government borrowing costs.  The hit on exports is more than offset by direct investment in US assets as capital chases quality.  That being said, it doesn't matter because we are so far in debt the Fed will never come close to normalizing rates.  The Fed has eased us into a corner.  We are fucked. 

foxmuldar's picture

Well one thing's for sure, you can bet President Trump won't be making trips to Africa and leaving $8 Billion dollars behind. That goes for many of the other shitholes Obama's dropped billions of our tax dollars just to make himself feel good. Most of it to his Moozlem friends. And that pallet of cash he tried sneeking into Iran in the middle of the night. 

northern vigor's picture

Obama has been buying himself the job of UN general secretary. Bribing African and ME dictators to vote for him, with American taxpayers money. 

Bubbette's picture

I think he is trying for Race Pimp In Chief.  A three-way knife fight between Sharpton, Jackson and Obama.  May the best grifter win.

Clock Crasher's picture

Are you ready for the twenty first century golden tulip mania?

bankerssuck's picture

Just take a look at bitcon........ tulip mania in the making

silverer's picture

I sure hope Trump educates the stupid public on this. Under the US constitution, the president cannot directly interfere in financial policy. Let the blame fall where it belongs: Yellen. She is the financial version of Merkel.

squid's picture

"Under the US constitution, the president cannot directly interfere in financial policy."


Oh yah? Where? Which article/ section, i'd like to read that part.


I'll bet it's right next to the section on executive orders, gay marriage and abortion, right?


Quote the section, I want to read it.



CorporateCongress's picture

Bla bla FED keeps rates too low... Bla bla FED should keep rates low. Whatever, the moment you talk about what the FED should you lost me.


CHoward's picture

It's an electronic publication and you have ONLY 1,000 copies available?  How can that be?

Why Bother's picture

I guess there is a blank out in the Trump worshippers on this one although Trump campaigned for increased defense spending and infrastructure spending that will continue the enormous deficit problem.

Wulfkind's picture not disturb the parishoners in penitent prayer and supplication to Lord High Trump.  They will go on jihad if you do.

StreetObserver's picture

The compounding interest on that will soon eat up more money than the pitiful growth in the Obama administration--if it hasn't already happened. Everyone you talk to about politics should be made aware of the state of the economy and the depression that is being handed to President Trump.

Silver Savior's picture

Trump will make one heck of a scapegoat. Glad he is there to absorb it all.

All is chosen's picture

 I only looked in to see if Summers had made a new year resolution

He hasn't

buttmint's picture

...I just stumbled onto a bunch of Clif High vids on "predictive linguisitics."

The guy is spot on, or a helluva charlatan.


Feedback, anyone?

All is chosen's picture

How many limbs are you chewing off each hour listening to him?

Could be a new rating system: LPH?

The Most Interesting Frog in the World's picture

Janet dislikes inflation more than she likes stocks going up...

Yellen Strikes Out Trump

LawsofPhysics's picture

Power and control can make such things "dissappear"... 

WWIII will begin in earnest before you are ever correct in your calls.

pndr4495's picture

As G. Edward Griffin has said, "When it's no longer about money, it's about power." Tyranny results from concentration of power with 0, ZERO accountability.

The Most Interesting Frog in the World's picture

Figuring out central banks is far more difficult than figuring out markets...

GRDguy's picture

Not really. The old 1889 book "The Great Red Dragon" pointed out that their "goal is to own the earth in fee-simple."

Create thin-air money to loan to anyone securing their borrowings with TITLE.

Then make sure they can't pay it back.  Game over.

Sometimes The Dragon Wins.  (sucks)