With 2013 now upon us, the Godfather of newsletter writers, Richard Russell, told his subscribers they are now living through the greatest bubble in history. Russell also discussed gold and the important breakout in the closely-watched VIX. Here is what Russell had to say in a note to subscribers: “You and I are watching, or I should say living through, the greatest bubble in world history. What could it be? Is it the world population growth? Is it the explosion of world communication? Is it the progress in health?”
Richard Russell continues:
“It might be any one of those, but no — it’s the credit bubble. Think of it. The US now has a national debt of over $16 trillion. That doesn’t include incurred debt that is not on the books. The question is — how will this enormous debt ever be handled? (1) It might be refinanced, meaning that it might be (if possible) kicked down the road like an old tin can.