“.. after the tumultuous and very painful times that we are likely to experience in the next few years, the West will have a sustained period of decline. All the excesses in the economy and in society must be unwound. These abnormal and unreal excesses are not just corporate executives, bankers, hedge fund managers or sportsmen earning $10s to $100s of millions but also a total collapse of ethical and moral values as well as a breakdown of the family as the kernel of society.”
The ulta rich need these low rates to continue siphoning off the wealth of the world into their pockets. The poor can’t get the kind of loans needed to capitalize on the low rates. This whole “The economy is fragile” business is just the lie they’re telling to keep it going. When it comes to a head, again, the poor will bail out the banks that enslaved them, again, and the financial smorgasbord will start all over. How long can they lie to the people and get away with it? It’s been a decade, so far. This “financial crisis” is the exact same thing as the stock market mess that caused the “Great Depression”, except this time, it’s unregulated bank speculators instead of unregulated stock speculators.
“Brother, can you spare a dime?”
THERE WILL BE NO DOUBLE DIP….. by Egon von Greyerz – Matterhorn Asset Management
No, there will be no double dip. It will be a lot worse. The world economy will soon go into an accelerated and precipitous decline which will make the 2007 to early 2009 downturn seem like a walk in the park. The world financial system has temporarily been on life support by trillions of printed dollars that governments call money.
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The effect of this massive money printing is ephemeral since it is not possible to save a world economy built on worthless paper by creating more of the same. Nevertheless, governments will continue to print since this is the only remedy they know. Therefore, we are soon likely to enter a phase of money printing of a magnitude that the world has never experienced. But this will not save the Western World which is likely to go in to a decline lasting at least 20 years but most probably a lot longer.
The End of an Era
The hyperinflationary depression that many western countries, including the US and the UK, will experience is likely to mark the end of an era that has lasted over 200 years since the industrial revolution. A major part of the growth in the last 100 years and especially in the last 40 years has been built on an unsustainable build-up of debt levels. These debt levels will continue to swell for another few years until the coming hyperinflation in the West leads to a destruction of real asset values and a debt implosion.
In the last 100 years the Western world has experienced a historically unprecedented growth in production, in inventions and technical developments leading to a major increase in the standard of living. During the same period government debt, as well as private debt have grown exponentially leading to a major increase in inflation compared to previous centuries. Read the rest from Egon.