Monday, August 22, 2016

America's System Is 
Based On More & More Debt
"The U.S. banking sector is vastly bloated, inefficient, unstable and destructive owing to a government policy regime that subsidizes and privileges banks in a massive and plenary manner. Accordingly, there is monumental over-investment and malinvestments in the banking system.  This truth is the very opposite of the erroneous mainstream predicate that ever more debt is the lynch-pin of capitalist growth and prosperity. By the lights of the Wall Street and Washington racketeers who dominate the debate, America’s $18 trillion economy can’t do without cheap and easy debt. Indeed, main street jobs and prosperity purportedly require more and more of it each and every quarter .. In fact, the only reason that—–eight years after what is claimed to have been a near Armageddon event—–we are still plagued with TBTF, the regulatory monstrosity known as Dodd-Frank and the continuing tenure of the likes of Bank of America and Brian Moynihan is the tyranny of this misbegotten 'moar debt'."
- David Stockman*
LINK HERE to the essay

1 comment:

Anonymous said...

This one is a MUST LISTEN. Michael Oliver from Momentum Structural Analysis and writer David Jensen join me to provide the latest evidence of global economic collapse. The biggest bubble in the history of the world is about to pop, and as it does, interest rates will rise quickly causing the whole house of cards to fall.

Michael explains, “The liquidity created by the central banks, instead of going into stocks as it has been, is shifting. the river of flow is shifting into commodities. We are about to have commodity price inflation.”

“We are living through the end phase of a global credit bubble which has been created by short circuiting the gold and silver markets, forcing interest rates down in a secular manner over 35 years. When you have credit tightening in a credit bubble, you have the recipe for the collapse,” David warns.

And as the Bond market bubble pops, inflation will quickly turn into hyperinflation, destroying life as we know it. Buckle up.