The era of zero-interest rates and unlimited government borrowing has ended. As Japan has shown, even at ludicrously low rates of 1%, interest payments on skyrocketing government debt eventually consume virtually all tax revenues. Higher rates will accelerate this dynamic, pushing government finances to the wall as interest on sovereign debt crowds out all other spending. As taxes rise, households have less disposable income to spend on consumption, leading to stagnation.
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Lyn was on Galloway's podcast discussing this recently.
view on youtu.beFind I enjoy Galloway for some reason. Nice to hear a center left opinion sometimes that goes against my twitter algo echo chamber.
Agreed. He's tries to be sensible most of the time. I can't stand Kara though.
I feel this Lyn Alden person keeps popping up more and more.
Maybe we'll get unusual stimulus like tax cuts, then.
West will get anarchy :) thats kind of a tax cut
I want to believe you, but things never quite seem to work out that well.
Hmmm. Novel idea. No chance
I missed this one. Had to take my wife to the city for an MRI. This is a really interesting perspective.
It really is. I hope all is well with the family.
Oh yes just a follow up test from her surgery in June. Doc says she is healing a bit slower than expected but otherwise all good.
Good to hear. US 10 year bond at 3.76 tonight. That is a huge sudden move.
Which central bank makes a statement first? US or Japan?
US. If BOJ backtracks that quickly it will scare the shit out of the whole world.
Good point. That would be the quickest pivot in history. Fed will probably try to jawbone the market if it is really volatile this week.
You probably know by now that I'm a crazy conspiracy theorist. My latest is that Powell didn't cut because it would have looked political so close to the election. If he moves to save the global financial system, who can blame him? He can cut 50 basis points and pump up the market before the election.
Isn't Japan's debt to gdp like more than double that of the US?
seems like an insurmountable hole. they should just develop a plan to reach complete independence and self sufficiency and then default on their debts.
What if i told you it never worked :)
It masked the symptoms of the disease, like cold tablets.
COVID lol
It is crazy to witness this fourth turning training crash in slow motion. What is even more wild, is I think this crash may take years to unfold.
Maybe. "This time is different" never is.
I wonder if Japan will take a unique approach on it. You might be surprised how much wealth the Japanese have, because it is an island country. Most of the wealth stays inside the island.
Another thing Japan has shown is that we have a ways to go before stuff actually fails. From what I have read we will not see a collapse of the dollar like many of us believe is inevitable foranu years. Economists have predicted Japan's implosion for many years and been wrong. I believe that fact has given rise to the MMT religion.
What do you think will happen to the dollar?
Stagflation was always the real risk of pandemic fiat printing. And here it comes right on time.
Did Japan give out stimulus checks?
Interesting!
The work salary alone is not enough, what about food consumption, how much is the child's school fees, and other needs?
Sometimes local governments do not think about the results of their community's work, the abilities of each community are certainly not the same.
It seems like stagnation has taken over the world in entirety. Bitcoin is the answer as is, but we see so much sudden decline in its fiat price whereas it should rise. What's the matter?