With the Thanksgiving Day holiday on Thursday of this week, are you prepared for the unwinding of the biggest bubble in history?

Here is a portion of what Peter Boockvar wrote today as the world awaits the next round of monetary madness:  I want to start the week by saying I believe ‘secular stagnation’ is bulls**t. As a believer in free trade and comparative advantage and thus with hopes that no trade battles take place in the next 4 years, I want to reiterate my optimism over the potential liberation of the US economy via lower and more competitive tax rates and an easing of the regulatory strait jacket all around the economy. This said, before we get to that economically better place (which we no doubt will I believe) I can’t help but be on alert about what the implications are of an unwinding of the biggest bubble ever created, that of credit via the helping hands of our central bankers…

As a reminder, back in October the IMF quantified the extent of this credit bubble by saying that global debt reached $152 Trillion in 2015 or 225% of world GDP (see attached chart), a record high. They said “about two thirds of this debt consists of liabilities of the private sector.” Thus, simply stated, this is the context that a rise in global interest rates comes in. The caveat on this debt build up though is stated by the IMF, “there is no consensus about how much is too much.”Staggering Global Debt Hits Record High

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Sources: Abbas and others 2010; Bank for International Settlements; Dealogic; IMF, International Financial Statistics; IMF, Standardized Reporting Forms; IMF, World Economic Outlook; Organisation for Economic Co-operation and Development; and IMF staff estimates. Note: U.S. = United States.

According to SIFMA (Securities Industry and Financial Markets Association), US bond market debt of which will be impacted by the rise in rates totaled $40.7T at the end of Q2 (a similar ratio to GDP as the world ratio). This debt consists of Treasury, municipal, mortgage related, corporate debt, federal agency securities, money markets, and asset backed.…more here