He's been predicting the popping of the 'everything bubble' (inflated and artificially high stock, property and other asset prices) that has been achieved by a decade of negative real interest rates (i.e. lower than the inflation rate) and massive expansion of government, corporate and household debt. He says they'll take interest rates into negative territory, meaning banks could charge people for storing their money, and create more and more debt to delay the day when it all collapses because it's impossible to solve an over indebted problem with yet more debt. The only way out would be massive and sustained economic growth but instead the world's going in the opposite direction with economies shutting down.Originally Posted by lardy
Reply With Quote