I don’t think that just 2023 is going to be a lackluster or potentially really bad year for the economy but that we could very well be in for a prolonged era of economic sluggishness.
In the aftermath of the 2008 global financial crisis, central banks flooded markets with cheap money by slashing interest rates to record lows and using a policy known as quantitative easing (QE) to buy trillions of dollars in financial assets.
The fall in borrowing costs made it easier for companies, governments, and ordinary Americans to take out loans, and fueled the rise of what Roubini calls “zombies” – people and businesses propped up by cheap debt rather than sound financials.
Roubini has warned that a combination of mounting debt, high inflation and low growth will trigger a global economic crash — and that stocks could fall another 25%.
Central banks like the Fed won’t be able to prevent an economic downturn, because consumer prices would increase faster if policy makers eased up on tightening, he said.
“The mother of all stagflationary debt crises can be postponed, not avoided,” Roubini wrote in a Project Syndicate op-ed last week.
The past 22 years has seen an explosion in the national debt. So that begs the question, where would the economy be if all that money was not pumped into the economy and what will happen if that spicket will have to be turned off?
According to the election, this is the logic of Brandonites and their leaders. While all of this craziness is going on, I’ll continue to build my house of bricks so that when this predictable wolf comes, he won’t be able to blow mine down. I sure hope it works because the big, bad wolf is coming.
The deadly poison of inflating a nation’s currency is, it allows the population to purchase and consume available goods without having to work to restock those available goods. In the end, there is plenty of paper money, but nothing to buy.
RIYADH, Dec 9 (Reuters) - President Xi Jinping told Gulf Arab leaders on Friday that China would work to buy oil and gas in yuan, a move that would support Beijing’s goal to establish its currency internationally and weaken the U.S. dollar’s grip on world trade.
Here’s another question. Economies are very dependent upon the capability and work ethic of the labor pool. There’s a reason so many countries are poverty stricken crime infested ■■■■■■■■■ decade after decade. Will our new generations have the work ethic and capability to keep America in the forefront economically?
China has had this goal for years. It is one of the reasons that they have been seeking trade agreements where the trade settles in their currency and moved to create a deby market for instruments denominated in their currency.
