The world is at the precipice of a gigantic debt-contraction and depression. From Charles Hugh Smith at oftwominds.com:
„Borrowing our way out of debt“ generates the three Ds of Doom: debt leads to default which ushers in Depression.
Let’s start by defining Economic Depression:a Depression is a Recession that isn’t fixed by conventional fiscal and monetary stimulus. In other words, when a recession drags on despite massive fiscal and monetary stimulus being thrown into the economy, then the stimulus-resistant stagnation is called a Depression.
Here’s why we’re heading into a Depression: debt exhaustion. As the charts below illustrate, the U.S. (and global) economy has only „grown“ in the 21st century by expanding debt roughly four times faster than GDP or earned income.
Costs for big-ticket essentials such as housing, healthcare and government services are soaring while wages stagnate or decline in purchasing power.What’s purchasing power?…
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