With the Eurozone’s global systemically important banks geared up to 30x, rising bond yields of little more than a few percent could collapse the entire euro system.
It is often claimed that inflation reduces the true burden of debt. This is true for existing debt, but those who advocate it as a remedy for government indebtedness fail to understand that it also increases the cost of the government’s future debt.
Economic growth results from increasing production, and the money supply is always sufficient to foster exchange. The boom-bust cycle only occurs when production is distorted by a growing money supply.
Economic growth results from increasing production, and the money supply is always sufficient to foster exchange. The boom-bust cycle only occurs when production is distorted by a growing money supply.
There's more saving and less spending. This would bring deflation, but there's a catch: we're making less stuff, which means more money chasing fewer goods.
