Tuesday, February 2, 2016

And yet, this is the core premise of Western economic.

Systemic fragility doesn't respond to central bank jawboning or Keynesian claptrap; unlike those "policy tools," fragility is real.

The core narrative of central bank/cartel capitalism is centralized agencies have the power to limit downturns and extend credit-based "good times" almost indefinitely. The centralized power bag of tricks includes fiscal policies such as deficit spending to boost "aggregate demand" in downturns and monetary policies such as lowering interest rates to zero and buying assets, a.k.a. quantitative easing.

"The Global Economy Could Fall Farther and Faster Than Pundits Expect." By Charles Hugh Smith, Of Two Minds, 2/2/16.

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