This: Scaling a $9.5 Trillion Debt Wall may just be the story of the year. Or maybe the background to the story of the year, which hasn’t yet broken.
Photo credit: JOHANNES EISELE/AFP/Getty Image
We are attempting to live in a make-believe world, where debts become assets and assets don’t have to be marked to reality or even marked to market. They apparently can be marked to whatever we want, with terms like ‘mark to unicorn‘ (epitomising our fairytale existence) arising. For as long as we can find those who are willing to lend on our assets.
But make-believe worlds do not actually exist other than as backdrops to reality. We actually live in a very real world, with very real mountains to climb.
Sooner or later the make-believe backdrop we have constructed will fall, succumbing to a reality check. Will that be this year? Or the next?
The extent of the misery it brings will be in inverse proportion to the make-believe that held it back.