There’s no question that the world economy has been shaky at best since the crash of 2008.
Yet, politicians, central banks, etc., have, since then, regularly announced that
“things are picking up.” One year, we hear an announcement of “green shoots.” The next year, we hear an announcement of “shovel-ready jobs.”
And yet, year after year, we witness the continued economic slump.
Few dare call it a depression, but, if a depression can be defined as
“a period of time in which most people’s standard of living drops
significantly,” a depression it is.
Many people are surprised that
no amount of stimulus and low interest rates have resulted in creating
more jobs or more productivity. Were they a bit more cognizant of the
simple, understandable principles of classical economics (as opposed to
the complex theoretical principles of Keynesian invention), they’d
recognise that,
when debt reaches the level that it cannot be repaid, a major re-set of some sort must take place.
The
major economies of the world have reached and exceeded that point and
the debt problem is no mere anomaly that can be papered over. It is,
instead,
systemic. There must be a major forgiveness of debt, a default, or an
economic collapse, or some combination of the three.
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