"The us economy suddenly looks like it’s unstoppable". That's what they said back in 2007 too (which marked the end of the Goldilocks era and led into the GFC). That's simply because things always look best at the top.
But with US national debt at a record high US$21.3 trillion and climbing, and the US budget deficit breaking the psychological barrier of US$ 1 trillion for the first time since the great depression in the 1930's, it's a long way to the bottom.
Such high national debt pushes up interest rates which translates to higher payments on mortgages, car and student loans and credit card debt. This global problem of record high debt levels in an environment of rising interest rates - including Australia - forewarns of the unprecedented credit crunch and debt deflation to come.
