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US cash is a depreciating asset fuelled by cheap artificial credit. This level of spending is not a genuine liquidity, but a economy on heroine. It will not end
by oleganza 13y ago
US cash is a depreciating asset fuelled by cheap artificial credit. This level of spending is not a genuine liquidity, but a economy on heroine. It will not end well because while people are buying all these plasma panels, printed money is being spread in to actually productive economies where it will cause inflation and massive losses. So either, say, China goes into depression and production halts and everyone loses, or China throws their USD back into U.S. causing massive inflation there. Short-term liquidity figures do not tell this story and they are not to be matched. Everyone needs to invest in hard assets and save instead of spending: invest in education, profitable businesses, friendly neighbours, bitcoin.