Whenever economic activity stagnates or declines, they quickly lower their interest rates and expand their credits.
With the egalitarian ideology at its core, the EU is heading in a direction that is opposite its original destination. The aim of the EU officials is to create a collective block and to build a high fortress around it. That block will hamper the growth of Europe.
Though western central banks have not been printing nearly as fast as their Zimbabwe counterpart, they do have a long history of increasing the money supply. It forces one to ask how much of the growth in Western stock markets over the preceding twenty-five years has been created by a vastly increasing money supply, and how much is due to actual wealth creation.
To say that Bono's factory is something special would not be truthful. The Edun clothing line is doing well, and is employing hundreds of people. That's great. It's called capitalism.
Because of Iran's great oil wealth, it has been able, thus far, to stave off a hyperinflationary blow-off.
Austro-libertarians should also be wary of the collectivism inherent in Schiff's (and other anti-trade deficit) articles. Unless you are a shareholder of Alcoa, what do you care who owns it? Why does it matter if those "future profits" are earned by Australians instead of Americans?
To conclude then, as long as the pool of real funding available to Americans is still growing, and as long as the growth momentum of liquidity is heading up, US financial markets will remain well supported regardless of the yen carry trade.
