Global Debt: Schumpeter's Creative Destruction

Global Debt: Schumpeter’s Creative Destruction by Steve Blumenthal, CMG Capital Management

“What beat me was not having brains enough to stick to my own game – that is to play the market only when I was satisfied that precedents favored my play”

Jesse Livermore – Reminiscences of a Stock Operator

There has been a lot of debate on the Reinhart-Rogoff hypothesis. When debt becomes excessive, growth slows. Most of the academic work tends to support their conclusion.

Today we take a sobering look at debt across the globe. It has increased by more than $57 trillion since the 2007 crisis and remains a significant headwind. Some countries are better positioned than others (stronger capital markets, currency advantages, underlying wealth, etc.)....