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     Jun 16, '14


CREDIT BUBBLE BULLETIN
Sound or unsound?
Commentary and weekly watch by Doug Noland


As follow-up to last week’s quarterly "flow of funds" analysis, I'll take a brief look at the Rest of World ("ROW") category. ROW now holds an incredible $22.971 trillion of US financial assets.

To put this number into some perspective, ROW holdings began



the 1990s at $1.874 trillion. Ballooning US Credit and attendant unprecedented Current Account Deficits saw ROW holdings surge $4.335 trillion, or 230%, during the '90s. Over the past 22 years, ROW holdings of US Financial Assets have inflated $21 trillion, or over 1,000%. Essentially, the US has unrelentingly flooded the world with dollar balances. This helps explain a lot.

The consequences of the massive inflation/devaluation of the world's reserve currency have for a long time been readily apparent. More ...

Doug Noland is a market strategist for the Prudent Bear Funds.

(Republished with permission from PrudentBear.com. Copyright 2005-2014 David W Tice & Associates. All rights reserved.)





 

 

 
 



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