Submitted by Taps Coogan on the 25th of October 2017 to The Sounding Line.

Wolf Richter, creator and editor of the popular finance and economics website Wolfstreet.com, recently spoke with the X22 Spotlight Report about a range of subjects from the meltdown in brick and mortar retail, to local housing market bubbles, to Fed policy and much more. Mr. Richter makes the broad point that the global economy has become over saturated in debt:

“There is a huge amount of debt already out there and it is increasingly difficult to add to it for various reasons and you look at over indebted households in a number of countries, particularly in places like Canada and Australia, you look at over indebted governments such as Japan and the United States, you look at a debt situation such as in China that is completely out of control there, and it’s getting very difficult to add to it. The credit impulse measures the flow of new credit so adding new credit is a positive and when new credit declines it’s a negative and its measured against GDP. So, it’s a global measure and we have seen credit sort of get in trouble in some places, in the United States too… Commercial and industrial loans have been essentially flat-lining for half a year. That has never happened unless there is a recession nearby…”

There is much more to the interview, so we recommend that you enjoy it below.