Chart of the day....

So look a the chart below that compares savings, interest rates and home ownership rates....



Savings have already increased to 5% and it on its way to 10% in my opinion. Additionally, home ownership rates will fall, probably to the mid-60's range. The implication is that as savings rates rise, household consumption will fall to a more sustainable level.

However, interest rates will eventually rise and coupled with the gigantic increases in the PUBLIC debt, that is debt issued on the market and owned by others, will definitively create interest payments that will bust the American Government's budget and cause it to default on its obligations. Probably the first obligation that it will default on is Social Security and/or Medicare.