Few commentators are aware that the dynamics leading to an inevitable collapse of credit are increasing.
This week, the more observant among us will have detected a fork in the road of credit creation.
Major nations are now officially in recession, suggesting that interest rates should be reduced according to the Keynesian playbook.
Intractable budget deficits abound in the UK, Japan, and Europe as well.
According to the Institute of International Finance, global government debt has increased from $33 trillion in 2008, to $71 trillion before the covid crisis three years ago, to $90 trillion today.
With interest rates and borrowing costs having also risen inexorably, global government debt has gone parabolic.
In inflation creation terms, the US and 9% budget deficit is the worst offender.
https://alasdairmacleod.substack.com/p/keynesian-credit-creation-meets-its
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