God only knows how many billions of yuan’s worth of loans and financial instruments were using this imaginary stuff as collateral, but then again, God only knows a lot of things about China’s economic “miracle.
There is a lot of misinformation about what caused the 2008 Crash and the 2011 EU Crisis. Here is the very simplest outline of what you, as a saver and investor, really need to know.
The problem with inflation is that it is a lot easier to create than contain. The Fed continues with its dubious claims that inflation is too low, but the markets and prices are saying otherwise.
Because we’ve reached a point in time at which $1 trillion no longer sounds like a lot of money, we thought we’d go through the exercise of assessing just what the Fed could have done with this money besides give it to Wall Street.
The great attempt to prop up the US economy through spending and printing money is at an end. The world takes a long time to catch on to these changes, but the shift has already begun. It’s now just a matter of time before stocks figure it out.
