EC Feels Like The First Time

Today’s Highlights

  • $23,000,000,000,000
  • Feels like the first time
  • Where’d the Volumes go?!

Please note: All data, figures & graphs are valid as of November 4th. All trading carries risk. Only risk capital you can afford to lose.

Traditional Markets

A new milestone has been reached for the global economy. No, I’m not talking about the new all-time high in the US stock indices, though this is an incredible feat in its own right. I’m talking about the new all-time high in the US national debt, which has now topped $23 trillion owed.

The rate of acceleration does seem to be increasing as we go and the overall level has about doubled over the last decade. This is certainly a cause for alarm for some economists but as for myself, I’ve found that it usually pays to be an optimist.

The Dollar amount here seems a bit arbitrary and even the rate of acceleration might not be a pressing issue as long as the main holders of the debt decide to hold onto it long term. Some have aptly pointed out the strong desire for China, Russia, and the European Union to de-dollarize their economies and so might be motivated to dump US debt.

However, the numbers tell us a different story. As of this publication, more than 70% of US debt is actually owned by the United States, the Federal Reserve, and US investors.

Less than 6% of all US debt is owned by China, virtually nothing is held by Russia, and the combined holdings of the EU member states probably couldn’t do very much physical damage by the numbers.

Now, that’s not to say that the economy is not about to go into a recession because it seems likely it will, nor am I claiming that there is no possibility of a catastrophe because there is. All I’m saying is that the probability of such outcomes has not been altered in any way due to this particular seemingly gruesome landmark.

Lagarde’s First Time

At 8:30 this evening in Berlin the new President will give her first public speech as leader of the European Central Bank. Though it might feel like it, it’s definitely not Ms. Christine Lagard’s first time in the spotlight. In fact, she’s no stranger to public appearances or large financial institutions.

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