{"id":126535,"date":"2024-01-31T12:30:18","date_gmt":"2024-01-31T17:30:18","guid":{"rendered":"http:\/\/kendallharmon.net\/?p=126535"},"modified":"2024-02-01T04:44:12","modified_gmt":"2024-02-01T09:44:12","slug":"bloomberg-5","status":"publish","type":"post","link":"https:\/\/kendallharmon.net\/?p=126535","title":{"rendered":"(Bloomberg) Nassim Taleb Says US Faces a \u2018Death Spiral\u2019 of Swelling Debt"},"content":{"rendered":"

Black Swan\u00a0<\/em>author\u00a0Nassim Nicholas Taleb\u00a0said the US deficit is swelling to a point that it would take a miracle to reverse the damage.<\/p>\n

\u201cSo long as you have Congress keep extending the debt limit and doing deals because they\u2019re afraid of the consequences of doing the right thing, that\u2019s the political structure of the political system, eventually you\u2019re going to have a debt spiral,\u201d he said Monday night at an event for\u00a0Universa Investments<\/a>, the hedge fund firm he advises. \u201cAnd a debt spiral is like a death spiral.\u201d<\/p>\n

Taleb defined the ballooning debt load as a \u201cwhite swan,\u201d a risk that\u2019s more probable than a surprise \u201cblack swan\u201d event. While he didn\u2019t identify specific outcomes in markets, he did say white swans include both the US deficit and an economy that\u2019s far more vulnerable to shocks than in prior years.<\/p>\n

The reason for that, he said, is that the world is far more interconnected due to globalization, with issues in one region able to ricochet around the world.<\/p>\n

Read it all<\/a>.<\/p>\n

\n

Black Swan author Nassim Nicholas Taleb says as long as you have a government continually extending the debt limit and doing deals because they're afraid of the consequences of doing the right thing, then eventually you're going to have a debt spiral. https:\/\/t.co\/pQFrtVNqus<\/a><\/p>\n

— Ben Woodward, CFA (@BennettWoodman) January 31, 2024<\/a><\/p><\/blockquote>\n