(save for later reading)
The difference this time is that every single central bank in the world is pushing in the same direction.
That has never, ever, happened before in the history of the world.
Finance.101.
The financial markets and the US economy are more complex than just credits and interest rates. He is not even considering what happens when the economy grows more than currently and people having more disposable incomes.
What’s this person selling?
We seem to have experienced an “unprecedented” financial period during the last decade or so. Corporations have been forced into “saving” money overseas. Now that money is going to come back into the United States. If it goes into circulation all at once we will have run-away inflation, but if corporations continue to “save” it by buying back their stock, we may get to experience the mythical “soft landing”.
This stuff has been preached forever. Does this guy sell cassettes?
Borrowing: Trading current consumption for future labor.
Voluntarily entering into Indentured Servitude
Clearly opening the border to hordes of invaders in hopes they will jump on the credit bandwagon is a losing proposition. Without your signature on a loan Wall Street has no real assets.
save
Actually, Bill Clinton proved the premise of the article to be false. He fabricated more fiat dollars then sold them to banks and forced them to loan it out.
Very much agree.
[Central banks are now trapped. If they raise rates to provide low-risk, high-yield returns to institutional owners, they will stifle the “recovery” and the asset bubbles that are dependent on unlimited liquidity and super-low interest rates.]
Some have suggested that interest rates at some level would make it impossible for governments to service the interest payments. Seems they were talking about the U.S.A. (probably others since 2008 did so much damage). Comments?