Potential for economic impairment and currency devaluation due to booming credit expansion and debt levels
From Investing.com: 2025-07-03 15:01:00
The United States is experiencing a boom in credit expansion, with debt levels surpassing $36 trillion and expected to hit $40 trillion due to a new debt bill. This could lead to a Crack-Up-Boom scenario, resulting in stagflation or hyperinflation in the future. The economy is showing better than expected numbers, but the true impact remains uncertain. A Crack-Up-Boom occurs when credit and debt spiral out of control, leading to economic impairment and currency devaluation. The Continuum’s breakout in 2022 signals a shift towards inflationary policies, with a focus on commodities as a potential investment. The Treasury market’s breakout indicates a trend towards inflationary pressures, potentially leading to a period of stagflation. The current macroeconomic environment suggests that a Crack-Up-Boom may be imminent, prompting the need for effective strategies to navigate the inflationary landscape.
Read more at Investing.com: Stock Market Highs Mask the Debt Engine Beneath: Crack-Up Boom in Real Time?