While its housing market collapses, the US lives in a Disney-like bubble on debt, according to Neil Dwane, the CIO of Investment management group RCM.
“The USA continues to proceed in its Disney-like bubble but debt ceilings, political ineffectiveness and a weak dollar allow complacency to build further as the US housing market collapses further,” said Dwane in an interview with CNBC on Tuesday.
Like PIMCO co-CEO Mohamed A. El-Erian, Dwane believes the only way out of trouble for America and other highly indebted nations is financial repression.
Interest rates kept below inflation rates so that the real value of debt is eroded over time, this is the only solution...unless we default,” said Dwane.
Join us on our
Share this page with your friends
on your favorite social network: