Interest Rates [credit] are the cause and consequence of the Explosion of Income/Wealth Disparities and, hence, of the inherent Instability of this Economy:
Origin of Economic Chaos.
As far as we know, as of today no other economist has yet discovered the link between Income Distribution and the Liquidity Trap.
None of the traditional tools of government will work.
The helpless leaders of the G20 countries are pathetic, aren't they?
Can the right monetary and fiscal policy keep the US out of a recession?
Allen Greenspan recently stated:
Probably not. Global forces can now override most anything that monetary and fiscal policy can do.
Long-term real interest rates have significantly more impact on the core of economic activity than the individual actions of nations.
Central banks have increasingly lost their capacity to influence the longer end of the market.
Two to three decades, ago central banks were dominant throughout the maturity schedule. Thus, the more important question is the direction of long-term real interest rates.
When long-term interest rates are so low as not to reward the risk people stop to invest. Wouldn't you? Who can coerce them into losing money?
Because it is through investments that money is created.
The blood of the economy stops to flow, it is the ominous liquidity trap, the root of economic chaos.
The crash will be brutal, with NO prior warning, you need to be prepared!
Better safe than sorry...
