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Excessive use of Leverage has brought the world to the financial abyss. Untested Monetary Policies by Global Central Banks have heralded in a world of Mispricing and Malinvestment, where financial markets have disconnected from the real economy and the productive use of capital.
Our forefathers warned us of this and Ludwig von Mises spelled it out that "there is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved".
Ty Andros and Gordon T Long discuss how we have reached the point where, just as the Fed could never again substantially shrink its balance sheet after 2008, it now, along with the ECB, BOJ and BOE, will never be able to stop the flow of printing without destroying the economy.
This two part series walks the listener through how this has come to be, where it is leading, what should have been done earlier and the likely outcomes that are ahead.