Rothchild On The National Debt – Bubble Callers Might Have It Wrong

Someone said, “Money doesn’t disappear, it only changes hands.”

By that token, the financial meltdown of 2008 resulted in a liquidity seizure, not a crisis of solvency. In their October ‘Market Perspective’ Rothschild Wealth Management would like to give the US economy more credit than it’s getting – especially considering the increasing rhetoric surrounding unsustainable asset values that would allegedly collapse as the Fed finally moved to realign interest rates.

Doubting Thomases also cite record national debt, a collapsing Eurozone, demographic disadvantages, geopolitical risk and China’s economic dominance as other reasons for doom and gloom.

National debt: Doomsayers ignoring underlying positives

But this could be a narrative fallacy, a caricature, according to Rothschild. “National balance sheets; the funding of Western pensions; the single currency project;...