COMMENT: Thanks. That publish lastly opened my eyes. That’s why there was no inflation with all of the QE and detrimental rates of interest since 2014 right here in Europe. If I purchase your home and we’re in the identical nation, it’s only a poker recreation. The variety of chips on the board simply moved from one participant to the opposite. But when a brand new participant joins the sport, the money pot rises.
I lastly perceive why you warned the central bankers that the detrimental charges would by no means work. Good! I can’t thanks sufficient. You taught me extra in a single publish than I realized in 4 years of economics class.
You have to write a ebook.
FH
REPLY: I’m engaged on that now. I hope individuals will begin to perceive that the central banks are trapped. That’s the reason Powell warned Congress this spending is “unsustainable.” Central banks usually don’t criticize the federal government. What Powell mentioned was MONUMENTAL, and most of the people who blame the Fed are blind to the actual disaster dealing with us post-2024.
I nonetheless get hate mail from Goldbugs who refuse to open their eyes. Sadly, loads of individuals will lose their shirts due to their indoctrination right into a principle that doesn’t work. The outdated theories have been developed when the trade charge amongst nations was primarily based on metallic content material. There was no main debt market as at this time the place central banks are holding the debt of different nations for reserves on this recreation of overseas commerce and capital flows.
