AdvancingTime
Senior Member
- Feb 8, 2015
- 150
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Central Banks have been expanding the money supply and had their foot to the floor yet economies across the world are not even close to escape velocity. Lessons from the "Financial World" are being doled out rather rapidly these days and it is best to pay close attention.
A very strong case can be make that a slew of new tools added the the central banks' tool boxes have masked and distorted the economic landscape. This can be seen in the explosion of derivatives, more debt leveraging, and in the growing carry trade. It is a fact that unproven tools can produce damaging results when not prudently applied still efforts to "extend and pretend" seem almost unlimited.
Many people thought Modern Monetary Theory (MMT) was to be our salvation and a tool to even out economic cycles but instead it has morphed into a massive dept machine. While those in charge appear undaunted by what is occurring the fact is by a series of off-book and backdoor transactions they have transferred losses from the banks onto the shoulders of the people. The article below explores the many lessons to be learned from this experiment.
http://brucewilds.blogspot.com/2015/08/lessons-from-financial-world.html
A very strong case can be make that a slew of new tools added the the central banks' tool boxes have masked and distorted the economic landscape. This can be seen in the explosion of derivatives, more debt leveraging, and in the growing carry trade. It is a fact that unproven tools can produce damaging results when not prudently applied still efforts to "extend and pretend" seem almost unlimited.
Many people thought Modern Monetary Theory (MMT) was to be our salvation and a tool to even out economic cycles but instead it has morphed into a massive dept machine. While those in charge appear undaunted by what is occurring the fact is by a series of off-book and backdoor transactions they have transferred losses from the banks onto the shoulders of the people. The article below explores the many lessons to be learned from this experiment.
http://brucewilds.blogspot.com/2015/08/lessons-from-financial-world.html