by Bruno de Landevoisin @ StealthFlation
An intractable economic condition that inevitably arises as excessively issued fiat currency impulsively pursues non-productive wealth assets in a grossly over-leveraged economy which is being artificially reflated by monetary authorities in a desperate attempt to synthetically engineer growth via extreme monetization.
This effectively prevents the real economy on the ground from realizing the healthy normalization and natural balance of free market forces necessary for the legitimate capital formation required to produce genuine and sustainable economic growth.
Also known as; wishful thinking, and robbing Peter to pay Paul.
This entirely synthesized approach to capital formation engenders the following ruinous conditions:
1) Fabricates stealth dormant velocity of money, concealing embedded inflationary risks to the economy.
2) Produces highly unstable recurring capital market asset bubbles.
3) Drives superfluous misallocation of investment capital, disregarding and disadvantaging the crucial SME sector.
4) Generates excessive capital markets volatility and unpredictability, disrupting deliberate business development.
5) Delivers lethargic overall economic activity with limited unsustainable growth.
6) Encourages deleterious off-shoring of the manufacturing base.
7) Facilitates fantastic fiscal deficit spending sprees.
8) Decreases median income and job creation capacity.
9) Spawns extreme income inequality and social discontentment.
10) Eviscerates the very essence of money by grossly compromising the means of exchange.
Purposely degrading this Nation's hard earned reserve currency status, which was so honorably passed on to us by previous generations who built this great country from the ground up through their virtuous and industrious blood, sweat and tears. Only to then implement a disgraceful monetary policy that deliberately steals from future unborn generations in order to facilitate living standards beyond our means, so as to sustain an unearned, undeserved and unprincipled culture of grotesque illegitimate debt financed over-consumption, can only be characterized as a deplorable unconscionable abomination of epic proportion.