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Central banks keep printing money forever. Now we are at the point where the real economy and stocks have diverged. Of course central authorities cannot always
by acd 6y ago
Central banks keep printing money forever. Now we are at the point where the real economy and stocks have diverged. Of course central authorities cannot always just buy all bad debt. There is somehow a distortion of risk. Ie buyers of financial papers are not exposed to their risk fully if central banks buy “bad debt”. This financial printing of limitless debt is putting many at debt.
I am worried if there is no caps in debt printing and freedom. You are not free if you are forever a life time in debt.
Somehow I feel there is a symbiosis between politicians winning elections on promises which central banks deliver by creating through new debt.
I am trying to say that we are at global warming and constantly creating more stuff is requiring more energy and we are already using too much of that.
Thus the economy and the environment are diverging. We probably cannot maintain status quo for too long.
Something better more sustainable will come after that.
Zero interest rates are not causing inflation through salaries increasing they flow to more automation and robotics. Automation lower cost of production and are thus deflational.