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61 sats \ 0 replies \ @davidw 14 Mar 2023 \ on: Bankruptcies Soar Across EU, As Companies Hit Wall At Fastest Rate Since 2015 bitcoin
All going ahead as planned.
Taken from this Stacker News summary of The Sovereign Individual, a book published in 1996…
  • The result to be expected is an intense fiscal crisis with many unpleasant social side effects.
  • The economic consequence of this transition crisis will probably include a one-time spike in real interest rates. Debtors will be squeezed as long-term liabilities contracted under the old system are liquidated.
  • Governments facing serious competition to their currency monopolies will probably seek to underprice the for-fee cybercurrencies by tightening credits and offering savers higher real yields on cash balances in national currencies.
  • Higher real rates around the world will spur liquidation of high-cost, unproductive activities and temporarily reduce consumption.
  • The deflationary environment may drag on for some time, with more adverse consequences in the high-cost industrial economies of North America and Western Europe than in the low-cost economies in Asia and Latin America.
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