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It's not about "hope", it's about what is possible/will happen, in this case I don't think there is the room for governments to manoeuver anymore, i.e. they can
by hd4 4y ago
It's not about "hope", it's about what is possible/will happen, in this case I don't think there is the room for governments to manoeuver anymore, i.e. they can't bail out the banks without creating 10-50x worse of the exact inflation they're trying to fight. Some may argue these governments can simply continue the exercise of holding the private banks on their own balance sheets such as in the case of Japan owning most of the issued bonds, but that comes with its own set of consequences, Japan has been stuck in stagnation and a "silent depression" (to borrow Emil Kalinowski's term) for the last 30 years. I don't think that is going to wash this time.
- dadoge 4y agoThat’s fair. But I wouldn’t fully rule out a bail out…look at the crazy policy of UK cutting taxes recently
- paganel 4y ago> Japan has been stuck in stagnation and a "silent depression" I think that's what's in store for us here in Europe anyway. We have no reasonable young workforce anymore (in term of numbers, that is), the competitive advantage provided by cheap Russian energy is gone forever, we didn't really get on the IT bandwagon, or, more exactly we slipped off it by the late 2000s (I'd say), the euro is not the world reserve currency and I could add some more. I honestly fail to see how Europe can avoid Japan's fate when it comes to its economy.