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Ripple Effect

Consumers Got the Memo

Loading ...Addison Wiggin

November 12, 2025 • 1 minute, 27 second read


Debt to assets

Consumers Got the Memo

Although consumer debt is at an all-time high, consumers themselves got the message during the last crisis: Pay down debt, own more assets.

That’s taken the U.S. household debt-to-asset ratio to levels last seen in the 1970s, around the time the U.S. went off the gold standard:

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Households, unlike government, have paid down their debt and benefited from rising asset prices (Source: FRED)

Contrast that with government. The U.S. government, still enduring its longest “shutdown” ever, managed to grow its debt by half a trillion dollars – while its doors were officially closed!

Rising government debt, moreso relative to GDP than the total value, is on the precipice of full-blown crisis level. When the government gets into trouble, households need to be prepared.

We expect the end of AI buildout euphoria in the stock market may be the catalyst. What you can do right is get your own financial house in order. Pay off debt. Own hard assets. Don’t borrow to invest in the stock market.

~ Addison

P.S. We’ve invited Bloomberg’s #1 employment analyst Andrew Zatlin, to join us tomorrow on Grey Swan Live! for obvious reasons:

Andrew Zatlin — the #1-ranked economic forecaster on Bloomberg and one of the most connected data minds in finance.

For decades, Andrew has helped billion-dollar hedge funds stay three steps ahead of Washington’s chaos, consumer shifts, and global supply chain shocks.

As unemployment ticks up, politicians trade on insider intel, and Pelosi closes out an era, he’ll reveal what his data is signaling next — and what investors should prepare for.

If you have requests for new guests you’d like to see join us for Grey Swan Live!,  or have any questions for our guests, send them here.

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2025: The Lens We Used — Fire, Transition, and What’s Next… The Boom!

December 22, 2025 • Addison Wiggin

Back in April, when we published what we called the Trump Great Reset Strategy, we described the grand realignment we believed President Trump and his acolytes were embarking on in three phases.

At the time, it read like a conceptual map. As the months passed, it began to feel like a set of operating instructions written in advance of turbulence.

As you can expect, any grandiose plan would get all kinds of blowback… but this year exhibited all manner of Trump Derangement Syndrome on top of the difficulty of steering a sclerotic empire clear of the rocky shores.

The “phases” were never about optimism or pessimism. They were about sequencing — how stress surfaces, how systems adapt, and what must hold before confidence can regenerate. And in the end, what do we do with our money?!

2025: The Lens We Used — Fire, Transition, and What’s Next… The Boom!
Dan Amoss: Squanderville Is Running Out Of Quick Fixes

December 19, 2025 • Addison Wiggin

Relative to GDP, the net international investment claim on the U.S. economy was 20% in 2003. It had swollen to 65% by 2023. Practically every type of American company, bond, or real estate asset now has some degree of foreign ownership.

But it’s even worse than that. As the federal deficit has pumped up the GDP figures, and made a larger share of the economy dependent on government spending, the quality and sustainability of GDP have deteriorated. So, foreigners, to the extent they are paying attention, are accumulating claims on an economy that has been eroded by inefficient, government-directed spending and “investments.” Why should foreign creditors maintain confidence in the integrity of these paper claims? Only to the extent that their economies are even worse off. And in the case of China, that’s probably true.

Dan Amoss: Squanderville Is Running Out Of Quick Fixes
Debt Is the Message, 2026

December 19, 2025 • Addison Wiggin

As global government interest expense climbed, gold quietly followed it higher. The IIF estimates that interest costs on government debt now run at nearly $4.9 trillion annually. Over the same span, gold prices have tracked that burden almost one-for-one.

Silver has recently gone along for the ride, with even more enthusiasm.

Since early 2023, Japan’s 10-year government bond yield has risen roughly 150 basis points, touching levels not seen since the 1990s.

Over that same period, gold prices have surged about 135%, while silver is up roughly 175%. Zoom out two years, and the divergence becomes starker still: gold up 114%, silver up 178%, while the S&P 500 gained 44%.

Debt Is the Message, 2026
Mind Your Allocation In 2026

December 19, 2025 • Addison Wiggin

According to the American Association of Individual Investors, the average retail investor has about a 70% allocation to stocks. That’s well over the traditional 60/40 split between stocks and bonds. Even a 60/40 allocation ignores real estate, gold, collectibles, and private assets.

A pullback in the 10% range – which is likely in any given year – will prompt investors to scream as if it’s the end of the world.

Our “panic now, avoid the rush” strategy is simple.

Take tech profits off the table, raise some cash, and focus on industry-leading companies that pay dividends. Roll those dividends up and use compounding to your overall portfolio’s advantage.

Mind Your Allocation In 2026