Five game-changing events, what I call The Five Horsemen, will indicate that the rules have changed and a new reality is about to take over:
- The First Horseman: New credit growth falls below interest payments
- The Second Horseman: The Fed monetizes debt
- The Third Horseman: Government deficit spending exceeds 10% of GDP
- The Fourth Horseman: The dollar goes down, while interest rates go up
- The Fifth (and final) Horseman: US debt becomes denominated in foreign currencies