The Fed is
busy doing everything in its considerable power to get credit (that is, debt)
growing again so that we can get back to what it considers to be “normal.” But the problem is that the recent past was not
normal. You may have already seen this next chart. It shows total debt in the
U.S. as a percent of GDP: (Source).....
Somewhere
right around 1980, things really changed, and debt began climbing far faster
than GDP. And that, right there, is the long and the short of why any attempt
to continue the behavior that got us to this point is certain to fail. It is
simply not possible to grow your debts faster than your income forever.
However, that’s been the practice since 1980, and current politicians and
Federal Reserve officials developed their opinions about “how the world works”
during the 33-year period between 1980 and 2013.
Put bluntly, they want to get us back on that same track, and as soon as possible. The reason? Because every major power center, be that in D.C. or on Wall Street, tuned their thinking, systems, and sense of entitlement, during that period. And, frankly, a huge number of financial firms and political careers will melt away if and when that credit expansion finally stops. And stop it will; that’s just a mathematical certainty.......To Read More.....
Put bluntly, they want to get us back on that same track, and as soon as possible. The reason? Because every major power center, be that in D.C. or on Wall Street, tuned their thinking, systems, and sense of entitlement, during that period. And, frankly, a huge number of financial firms and political careers will melt away if and when that credit expansion finally stops. And stop it will; that’s just a mathematical certainty.......To Read More.....
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