By Will Krumholz
America’s debt and deficits usually are spoken of in terms of economics, but they have huge implications for national security. To see why, start with the economics angle.
Famed investor Michael Burry — who foresaw the housing market bust and was played by Christian Bale in the hit film “The Big Short” — has just issued a warning. In a series of tweets, Burry said that the stock market could crash because of too much debt.
Burry also fears inflation could become uncontrollable, based on a sharp year-over-year increase in data that tracks retail sales and money supply, coupled with unprecedented federal budget deficits and bond-buying by the Federal Reserve, known as quantitative easing. Indeed, retail sales are up year-over-year due to unprecedented stimulus from Washington.
This piece was originally published in The Federalist on March 4, 2021. Read more HERE.