Central Bankers Want to Have Their Cake and Eat It.
In this report I talk about recent comments by Alex Brazier of the Bank of England. Mr Brazier warns about the consumer credit bubble in the UK but fails to mention that this bubble has been created by the Bank of England's highly accommodative monetary policy of the last decade.
"Bank Of England Warns Of "Spiral Of Complacency" Over Soaring Consumer Debt": http://www.zerohedge.com/news/2017-07-25/bank-england-warns-spiral-complacency-over-soaring-consumer-debt
Thanks for the book recommendations.. Check out an article by Irish economist David McWilliams on how technology disruption is keeping wages and inflation low. I thought it was very insightful. https://woodfordfunds.com/words/insights/behind-the-curve/#main
I will thanks. One thing I would say though is that inflation is the increase in the money supply and what David McWilliams means is that technology disruptions is keeping some prices from rising.
He also links this to low wages which results in less spending in the economy . As wages are low and companies cannot then increase costs, there's not the appettite to send on replacing cheap workers with technology. Lots of variables ! Whats the point increasing the money supply if companies aren't using it to invest.
Barclays 3 execs on trial jan 2019 UK
The "club", central banks, always have to find someone to blame before they pull the plug. I think more economic theories need to model corruption as it is part of human nature. Corruption is the single biggest factor damaging the once great western democracies. Although, many could argue it has always been present in our system.
Central Banks are still pushing easy money. I've observed it in a high rate in auto loans. Everybody's got a new car. U.S. auto loan debt is over $1 Trillion. Huge.
Thanks, I will check out the book. Do you think over production due to expansion with "cheap money" also a factor in the mess and these misapplication of capital need to be wiped out via bankruptcies?
How ironic they're now complaining about the problem they themselves created, aided, and abetted. I suspect that not only do the central bankers want to have and eat their cake, they want to eat ours too!
meep
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Woww! You are great man!