Due to loose monetary policy (quantitative easing), financial assets appreciate without being supported by proper fundamentals while real estate becomes investment vehicles and the lower income strata are excluded from ownership. Despite what the conventional narrative about the economy holds, central bank monetary policies are a form of distortive government intervention in the economy. Their …
Tag: over-indebtedness
Hard austerity is coming with over-indebtedness and high inflation
The era of low interest rates and “easy money” is over, despite the dominant narrative in the international financial press of a new round of monetary policy easing that will return economies to pre-pandemic health crisis status and the prophecies of monetary policy makers policy that set the benchmark for monetary policy easing next June …
Light Painkiller the interest rate cut, loop the over-indebtedness
While the Federal Reserve and European Central Bank’s message on rate cuts appears clear as they reiterate their commitment to reducing inflation, the market expects between five and six rate cuts, between 125 and 150 basis points , the next twelve months. This shows us the tendency of investors to overlook bubbles. We live in …
How the US and the World’s Countries will avoid the Economic Armageddon caused by the Lockdown of Coronavirus Pandemic
The terrifying economic downturn that the developed economies of the world are gradually facing, especially that of the US, due to the Covid-19 (Coronavirus) pandemic is much worse than the global financial crisis of 2008 caused by the collapse of the US investment bank Lehman Brothers Holdings Inc. This is because the current crisis is …